Overcome the objection: "What happens in a bad market?"
This objection takes many forms:
"What the worst that could happen?"
"I hear IUL falls apart in bad markets."
"What if things don't go as planned?"
Stonewood reports can help answer them all by "stress testing" your IUL policies. For this, we use a Downside Scenario, which is a second IUL illustration run at a lower rate. The power of this report is in how we choose the lower rate: we base it off the worst decade in S&P 500(R) history.
THE WORST DECADE IN S&P 500(R) HISTORY
2000-2009 is the worst decade in S&P history. How bad is it? It's the only decade in S&P history where the market on average lost money. The average annual return of the S&P 500(R) from 2000-2009 was -1%.
HOW WOULD INDEXING COMPARE?
To establish a reasonable "stress test" or downside scenario for your client's IUL policy, Stonewood software shows how the IUL policy would have performed during the worst decade in S&P 500(R) history. Because indexing doesn't have to overcome the negative years, the results are powerful. Below is an example of how an index with a 0% floor and 12% cap performed.
Now, you've shown your client a reasonable range of expectations for policy performance, and overcome one of the most common IUL objections.
Want to learn how to overcome the objection "IUL is an expensive way to save"? Click here.