Blue Cross Blue Shield has announced a new producer bonus program that will run from July 1st, 2012 though September 30th. There is a potential to earn up to $24,000 over normal commissions. Unlike most bonus programs that are based entirely on cases sold, the Grand Slam will increase the production bonus from 1 to 3 times if you maintain a retention level on existing business of between 87-100%
You can see full details and rules at the AMG Website under the "OMG" button at the top of the page. Just click the BCBS Bonus link or call Heather Matias for additional information at 713.977.0611.
Indexed Universal Life Insurance
Indexed Universal Life (IUL) is the fastest growing individual
life product on the market. As more and more carriers introduce their version of this product, it has become confusing as to which one is the best to offer your clients.
There are a multitude of different options to consider and here are just three:
Caps And Participation Rates
The cap is the maximum amount of upside crediting the cash value account will receive in any given year. For example, if the chosen index is up 15 percent and there is a 13 percent cap, then the cash value would be credited with 13 percent interest. The participation rate, on the other hand, is the percentage of the positive credit the cash value will receive. If the index is up 20 percent in a given year and there is a 50 percent participation rate, then the cash value account will receive a 10 percent credit rate.
Index Options
Some carriers offer only the S&P 500 and even carriers that offer multiple index options often use the S&P as their default when running an illustration.
There are advantages to having multiple index accounts. Many clients already have exposure to the S&P through their other investments and offering clients access to overseas markets through an IUL can provide them some diversification in their cash value accounts without the risk of investing in specific stocks and bonds. Multiple index options can also diversify the returns within the IUL policy and protect from fluctuations in any one market segement.
Guaranteed Minimum Crediting And How The Rate Is Credited
A guaranteed minimum crediting rate can provide some protection against those years when the index return is zero or negative. Regardless, policy fees are still taken out of the cash value account. Consequently, a 1 to 2 percent guarantee can be important in terms of maintaining value in the cash value account.
If you would like to learn more about IUL products or to develop a quote, contact Steve Gresso at 713.977.0611 or click on his name to email.
