Better EIUL designs: What are the two most important design features of an EIUL policy? Blog added by Roccy DeFrancesco on February 7, 2011
Roccy Defrancesco

Roccy DeFrancesco


Joined: May 24, 2006

Better EIUL designs—What are the two most important design features of an EIUL policy?

1) Highest caps so the best growth can be achieved

2) Maximum loan rate

Today there are a few companies with annual point-to-point caps of 15 percent. Others are at 14 percent and some others are 13.5 percent or lower.

Obviously, the higher the caps the better when it comes to building cash in an EIUL policy.

New caps — As the title of this blog states, one company just re-priced their EUIL product to be both profitable for the company and the best product it can be for the consumer.

The new caps are 17 percent annual point-to-point with a 0 percent floor and a 16 percent annual cap with a 1 percent floor. In 0 percent years, the 16 percent product will credit 1 percent instead of 0 percent.

Would your clients rather have an EIUL policy with a 13.5 percent to 15 percent cap or one with the new caps I just described? The answer is that most will want a policy with higher caps so long as the other policy features are competitive.

Should you learn about the product that just rolled out these new caps?

If you sell cash value life insurance as an accumulation tool, you should.
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