“Too much month and not enough money,” is one way to express concern over someone’s finances. You might even find it in lyrics to a country song, as it resonates with many people.
This expression is somewhat analogous to how many ‘life expectancy-priced’ indexed universal life insurance (IUL) policies can affect policyholders who outlive the guarantee. These guaranteed death benefit products are designed to end around life expectancy, typically ranging from the insured’s age 75 to the upper 80s. Protection beyond that range is based on how the policy performs on a non-guaranteed basis.
While current life expectancy IUL products can illustrate sold non-guaranteed cash values and provide some flexibility, the fact that their guaranteed death benefits disappear at or around life expectancy will still leave your clients at risk of not having any death benefit protection should they live past life expectancy. That is in stark contrast to Accordia’s Life’s Lifetime Foundation IUL which provides lifetime guaranteed death benefit protection for your clients.
Life expectancy-priced products do nothing to minimize the risk of outliving policy guarantees. While the non-guaranteed projections they illustrate may paint a rosy picture, a more compelling story is the security of a guarantee in force no matter how long your clients live. Saving a few dollars today is of little comfort to survivors if the policy is no longer in force when your clients die. Lifetime Foundation will be.
Click here to learn more about Accordia’s GIUL