Indexed UL vs. Whole Life

Just like all financial products, Indexed UL has both advantages and drawbacks. IUL marketing materials are quick to point out that Indexed UL offers upside linked to the equity markets without the risk of having negative policy credits during an equity market swoon, but that’s only half the story. Every Universal Life policy has annual policy charge deductions that can partially or wholly offset interest credits. In other words, talking about credits without talking about charges is like showing only the benefits column of a cost/benefit analysis. Policy charges are just as much real deductions from the policy account value as policy credits are additions. As a result, looking at both elements is essential when considering Indexed UL for your client. So how efficient are policy charges in Indexed UL relative to other life insurance products? MetLife Promise Whole Life Select 10 provides a fair comparison point.

Spotlight

Vestar Capital Partners

Welcome to Vestar. Vestar Capital Partners is a leading global private equity firm. For 20 years, we’ve been seeking out talented management teams and supporting their entrepreneurial dreams, allowing them to run their companies as owners, with an eye toward long-term value creation. Our investments in management have achieved a performance record that’s among the best in our field: More than 65 transactions completed, in companies with a total value of over $30 billion, with consistently excellent returns. We’re now on our fifth investment fund, managing a committed equity pool of $3.7 billion, with total assets under management of $7 billion. We can invest up to $700 million in a single transaction.

OTHER WHITEPAPERS
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DIGITAL ASSET WHITEPAPER

whitePaper | April 4, 2022

Decentralization, Scalability, or Security: Pick two. In brief, the Trilemma refers to the fact that networks in general (and distributed systems in particular) suffer from internal trust issues, proportionate to their size: The larger the size of any network, the greater the degrees of separation between its members and therefore the lower the level of trust. This problem can only be averted by either a) making it harder to join the network, reducing scalability; or b) delegating the responsibility (and associated privileges) of overseeing the network’s activities to a handful of specialized nodes, sacrificing the inherent appeal of decentralization.

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Wexo WHITE PAPER

whitePaper | August 8, 2022

We have built a platform that can address the constraints of conventional financial institutions through the use of technological innovation. We see cryptocurrency as a means of the future and a catalyst for the creation of an open financial system. An open financial system should not be controlled by any country or company. It is the best way to bring more economic freedom, innovation, efficiency and equal opportunities to the world.

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Muni Bonds: making every basis point matter

whitePaper | November 14, 2019

Municipal bond funds experienced strong flows in 2019, as tailwinds from the country’s new tax code (the 2017 Tax Cuts and Jobs Act “TCJA”) and low interest rates found investors flocking to the asset class for the tax benefit. Add in strong year-to-date performance, and investors may be asking if they missed the boat and if it’s too late to invest in municipal bonds. Yet, there are clear and distinct reasons why municipal bonds are still an attractive investment for investors today.

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Digital Transformation for Banks

whitePaper | May 12, 2022

Conversational AI is a type of artificial intelligence that facilitates the human like conversation between a human and a software system in real time. It is a piece of software that a person can talk to, like chatbot, social messaging app, interactive agent, or smart device.

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The business value of ServiceNow for retail banks

whitePaper | December 12, 2021

Banks typically approach transformation in part by reengineering their own internal business, IT, and operational processes either in ad hoc ways tied to direct response to some tactical problem or over longer time frames based on carefully planned out strategic planning. Recently, however, this transformational process has taken on a new urgency, and certain projects that were targeted to take a year or two have needed to be accelerated to meet our rapidly changing banking environment. Even the need to respond to today’s tactical challenges needs to be viewed through the long lens of transformation. As banks begin their process of recovery, projects that provide immediate return on investment (ROI) and help develop resilient operations, improve customer experiences, or improve compliance through improved service management will become critical to how quickly banks can recover from periods of economic disruptions, now and in the future.

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Corporate Onboarding: Will it become a competitive differentiator for banks in a real time world?

whitePaper | April 19, 2021

The way in which banks onboard corporate clients can impact many aspects of their business, from reducing time to revenue, to improving customer experience and loyalty, and to compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This white paper explores how banks can deal with changing KYC regulations and the incoming 6AMLD; what technology can be utilised to assist banks achieve seamless corporate onboarding; and what stands to be lost, and more significantly, to be gained, with a seamless real-time onboarding experience.

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Spotlight

Vestar Capital Partners

Welcome to Vestar. Vestar Capital Partners is a leading global private equity firm. For 20 years, we’ve been seeking out talented management teams and supporting their entrepreneurial dreams, allowing them to run their companies as owners, with an eye toward long-term value creation. Our investments in management have achieved a performance record that’s among the best in our field: More than 65 transactions completed, in companies with a total value of over $30 billion, with consistently excellent returns. We’re now on our fifth investment fund, managing a committed equity pool of $3.7 billion, with total assets under management of $7 billion. We can invest up to $700 million in a single transaction.

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