Ans powerpoint whole-lifeversusindexeduniversallife
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Transcript of Ans powerpoint whole-lifeversusindexeduniversallife
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
Whole Life versus Indexed Universal Life
Making a wise decision
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
•What is life insurance? • History • Product
– Burial – Term – Whole Life – Universal Life – Variable Universal Life – Indexed Universal Life
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
Agenda • Why Indexed Universal Life
– John Geenen
• How to Use Indexed Universal Life – Kyle Winkfield
• Additional Features and Industry Update – Alexa Brennan
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Loss Aversion* “losses loom larger than corresponding gains” • We prefer to avoid a loss over acquiring a gain. • Losses are twice as psychologically powerful as gains. * Introduced in 1979 by Amos Tversky (cognitive mathematical psychologist) and
Daniel Kahneman (2002 Nobel prize in economics).”
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Increasing Market Volatility • Greater frequency of losses than over the preceding 53 years • Since March 2009, despite a 179% equity market advance,
investors have shunned equities • Because of loss aversion investors respond more heavily to
the losses than to the gains. • They allocate their portfolios more conservatively *https://www.fidelity.com/static/dcle/welcome/documents/Fidelity_Investments_Is_Loss_Aversi
on_Causing_Investors_to_Shun_Equities.pdf
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
By HOLMAN W. JENKINS, JR.
April 13, 2014 “Baby boomers can hope to experience practical immortality. In 15 years (2028),
medical technology will be adding a year of life expectancy every year. We will start to outrun our own deaths”.
Ray Kurzweil – Google Director of Engineering “the restless genius” by The Wall Street Journal, and “the ultimate thinking machine” by Forbes. Inc. magazine
calls him the “rightful heir to Thomas Edison,”
Since 1990, 115 of his147 predictions were correct. Another 12 "essentially correct"
(off by a year or two), giving him a stunning 86% accuracy rate. * http://online.wsj.com/news/articles/SB10001424127887324504704578412581386515510
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Gallup Investor and Retirement Optimism Survey August 6, 2014
Asked to invest or save an extra $10,000,
56% of said they would keep it as cash or saved in a CD *https://www.wellsfargoadvisors.com/about-wells-fargo-advisors/newsroom/2014-wells-fargo-gallup-investor-
retirement-optimism-index.htm
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
Indexed Universal Life Insurance • Protect your family with a generally tax-free, death
benefit • Protect cash value from negative market
performance • Accumulate retirement income tax-deferred • Distribute retirement income tax-free* * Loans and withdrawals may limit your ability to make elections to the Indexed Strategy, reduce or eliminate index credits,
generate an income tax liability, reduce available cash value and reduce the death benefit, or cause the policy to lapse.
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
Presented By:
No Sequence of Returns Risk
0% floor Upside caps
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Additional Features • Accelerated Death Benefits • Long Term Care Riders • Loan Provisions • Guarantees • Flexibility
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Industry Update • AG 49
– Promote industry consistency – Affects all companies selling IUL – Date to remember
• September 1, 2015 • March 1, 2016
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Industry Update • September 1, 2015
– Changes to max illustated rates – Uniform approach for calculating maximum
illustrated rate • S&P 500 Annual Point-to-Point • 100% Participation Rate, 0% Floor, Current Cap • Rolling 25-year look back approach for past 65 years
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Industry Update
– Other index selections may have different maximum illustrated rates, but they may not exceed the rate calculated using the defined approach using the S&P500 index
– Additional requirements for the Illustration Actuary
AUGUST 5-7, 2015 THE VENETIAN | LAS VEGAS
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Industry Update – Illustrations with loans: Maximum loan leverage
will be 1% – Additional disclosures will be required
• “Side-by-side” illustration at lower illustrated rate • Additional tables