How should agents explain IUL index crediting accurately?
Index-linked crediting is not direct stock ownership. Caps, participation rates and other terms can affect credits and may change as allowed by the policy. A crediting floor does not prevent policy charges from reducing account value.
How do agents separate IUL illustrations from guarantees?
Use approved illustrations and explain guaranteed and non-guaranteed values separately. Do not present an illustrated result as a forecast. Discuss how lower credits, changing charges or missed premiums could require more funding or create lapse risk.
What should agents explain about policy loan and lapse risks?
Loans generally accrue interest and can reduce available value and death benefits. Lapse or surrender with loans may create tax consequences, and policy tax treatment depends on circumstances. Refer tax questions to a qualified adviser instead of promising potentially tax-advantaged retirement income.
What should you know about Assess fit and plan ongoing reviews?
Evaluate budget stability, time horizon, understanding and the need for permanent coverage. Compare simpler alternatives when they address the goal. Review an existing IUL before recommending a replacement, including surrender charges, loans and renewed underwriting risks.