Accordia Lifetime Foundation
There is an interesting development with one of the newest products available, one that has definitely not gone “mainstream” yet: The Accordia Lifetime Foundation IUL Product.
Last year was a big year for Accordia and their SIUL contract for Advisors that took the time to learn the story around the cost structure and the crediting methodology. Big cases continue to play out in early 2015, so don’t forget that story.
We analyzed the LE Guarantee IUL segment, and Accordia is number one in a huge number of cells:
The savings are potentially massive. A push in some cells at younger ages versus Hancock’s Protection IUL, then savings that range from single digit percentages to as high as 40% versus NLG contracts
So that should capture most people’s attention, but the real question is how to get there, and it takes a different approach than the software might indicate. There are no solves built in to the software that you can use to get to these numbers. Accordia is going to add them to the software eventually, but until then (July), the agency that has figured it out and is willing to do the extra work has an advantage versus their peers.
Level Pays: Accordia put a RAP on the contract, and you have to pay a contractual minimum premium in the early years, then the premium drops significantly. The RAP can be anywhere from 5 to 30 years based on issue age.
- This is a hunt and peck exercise, looking for the premium to show $1000 @ age 95. Age 95 is important, as that is where the COI’s stop, so once you reach 95, the client has effectively “won the game”. The software will force the RAP in the first 15 years, then drop the premium to what you input.
Where this thing will really hunt is in Short Pays and Exchanges:
- You will likely already be above the RAP, so it is just a hunt a peck exercise. You can see why most agencies won’t bother: too many reasons to not sell this product and this company. That leaves their flank exposed, and you can attack it.
It takes a few iterations, but when there are savings of as much as 40% on the line, it’s worth the time.
Bottom line is that Accordia very much likes this design, they will add it to the software, and getting to your agent FIRST with this design is the only way to stand out. Wait too long and it will be on every street corner.