Overcome the objection: "IUL's an expensive way to save"
Google "IUL," and you'll quickly come across articles criticizing IUL as an expensive way to save.
But is it? Stonewood software helps you find out.
The first question to ask when determining if IUL is expensive: Compared to what?
Below are average costs for common retirement savings vehicles.
As you can see, both 401(k)s and managed accounts quote cost as a percentage. But in IUL illustrations, cost is represented as a dollar amount each year of the policy. This makes evaluating cost in an IUL policy a little like comparing apples to oranges.
Stonewood's Cost Analysis Report transforms an IUL policy's cost into a percentage. Here's how to run a Cost Analysis for your client.
STEP 1: Run the IUL Illustration
Download Illustration Guidelines
STEP 2: Run a Cost Analysis
Use the 401(k) Alternative software's Core Proposal Package module to run a Cost Analysis report.
Access the software | Watch a training video on using the software | Watch a training video on presenting the report
The Cost Analysis will show the average annual cost of the IUL policy, as a percentage. In the example below, the cost is 0.22%.
Now, you've shown your client that IUL can be one of the most cost-efficient ways to save for retirement.
Want to learn how to overcome the objection "IUL doesn't work in a bad market"? Click here.
1 http://blogs.wsj.com/totalreturn/2015/02/20/401k-fees-what-is-reasonable/
2 http://www.advisoryhq.com/articles/financial-advisor-fees-wealth-managers-planners-and-fee-only-advisors/