Posted by:
Jeff Reed on 1/18/2011
I made the point last week that the fundamental difference between EIUL and AUL was the carrier's investment strategy. What I did not mention is the basic trade off that results - increased volatility for a higher overall rate of return. Think about it, with the lower guaranteed rate and a cap of, say, 12%, an EIUL contract is going to credit somewhere between 2% and 12% annually, and average somewhere around 7% over the long haul. AUL ranges from 2% to 6% and averages around 5%. Seems reasonable enough, right? Let's take it a step further and examine the Global EIUL products that are out there. What's the big difference between them and a single index product aside from adding two international indexes?
Posted by:
Jeff Reed on 1/11/2011
We talked in the
fall of last year about Guaranteed UL (GUL) no longer being the clear winner versus Accumulation UL (AUL). Today we will go one step further by shifting our focus from AUL to Equity Indexed Universal Life (EIUL).