National Life Group (LSW) IUL: the living benefits pitch and how to illustrate it honestly
by InsuraCentralStaff20d ago1 views
National Life Group, writing through Life Insurance Company of the Southwest, is the IUL carrier most agents encounter first because of its living benefits riders and its presence in the field-marketing world.
Living benefits. Accelerated benefit riders for terminal, chronic and critical illness that let the client access part of the death benefit while alive. This is the center of the pitch for many agents. Present the riders from the current contract language: what qualifies, how the benefit is calculated, and the fact that using them reduces the death benefit.
The IUL itself. Indexed accounts with caps and participation rates, a floor, and cost-of-insurance charges that rise with age. Illustrate at a conservative rate next to the maximum, show the charges, and design under the MEC line for a client who wants income.
Where it fits. Clients who want death benefit with a living benefits safety net and are willing to fund the policy properly for a long time.
Where it doesn't. Clients who can only afford minimum premium; an underfunded IUL is a lapse in year 15.
Process. E-application, full or accelerated underwriting depending on face and age, illustration signatures required.
Compensation. IUL commissions are on target premium, not total premium. Overfunded designs pay less per dollar of premium than the illustration suggests. Know the schedule.
What rate are you illustrating at, and how do you present the living benefits without overselling them?