Josh VerHoeve, Asset VP, Annuity and Life Distribution
If you’ve spoken with anyone on the Asset Life Team over the past twenty years, you will have heard a common message that we’re all big fans of Allianz Life Pro+ Advantage Fixed Indexed Universal Life, along with its previous versions. When choosing an FIUL for your client today, there are so many factors to consider. The product landscape of FIUL has changed so dramatically and so frequently over the past five years that it can be difficult to keep up. There are many reasons that we put Allianz FIUL at the top of the list, and in this article we’re going to discuss those along with some new enhancements that you may not be aware of.
The first thing we need to remember when choosing an FIUL carrier is that the company matters. It matters more with FIUL than it does with any other financial product you might offer your client. FIUL sales are lifelong commitments. No one purchases an FIUL without the plan of keeping it for the rest of their life. So which companies can you count on?
As we look back on policies sold 10, 15, and even 20 years ago, we see that no carrier has treated clients better than Allianz. About a year ago, Allianz began publishing actual policyholder credits on their FIUL policies. This was in response to the common objection that “you’re illustrating your FIUL too high”. Well if you take a look at the Allianz FIUL Credits you’ll see over 30,000 in-force Allianz FIUL policies were surveyed with an actual client rate of return at 7.19%. I will also note that this 7.19% has only increased over the last year. The PIMCO and the BUDBI II ER Index returns have rarely been less than 10% on anniversaries in the year 2020. We depend on these carriers to realistically project clients’ retirement incomes, and we depend on their renewal rates. Allianz has done it the best.
You may be aware of a feature that Allianz rolled out almost a year ago called “Index Lock”. Index Lock gives you and your client the opportunity to lock in a gain on their FULL accumulation value before the anniversary date. This means that if you hit 10% three months into the year, you can lock in that 10% on all premium and values. In fact, you can lock in any gain at any time if you wanted to. If you have sold Allianz FIUL policies in the past, log-in to their website and take a look at where your clients are right now.
The amazing thing about the Allianz BUDBI II ER Index (most chosen allocation), is they have been crediting between 8-16% returns all year long. Even at the end of March when many of us thought the economy may just continue to decline, we saw some double digit returns, not just from the BUDBI Index, but also from the PIMCO Index. Not only did those policies who had anniversary dates in March have double digit returns, but some of those same policies today are already up double digits from March through August of 2020.
Allianz has one of the best Agent and FMO support systems. If you want a visit from them to better understand their product, let us know and they will be in your office. If you want to set up a Zoom call to help explain something to a client, they will be there. Internal Sales and In-force Support are so important when it comes to FIUL, and Allianz has continued to impress us.
It’s time to take a look at your book of business with Allianz, and if you haven’t written with them it’s time to start! If you’re curious whether you have a policy that’s in this category, you can check the website, but also know that an Asset Team Member will be reaching out to you soon to have that discussion. Allocations to the PIMCO or the BUDBI ER are in excess of double digit returns over the last six months and this is something to talk to your clients about. It may not mean that it’s time to lock in every single gain, but it’s certainly time to take a look to see if it makes sense.
The Asset Life Team is here to answer any questions, run a quote, or just discuss how life policies fit into your clients’ overall plan. Contact us at 888-303-8755 today!