John Hilton, Attorney Robert Rikard, Pacific Life, LIRP, IUL,
Ramona Neal, President, Living Benefit Review, LLC - It's like DeJa'Vu. The nurse's lawsuit in FL from decades ago... The fundamental lesson was to Not represent life insurance as a retirement savings vehicle. (Although, my gosh the tax preferential treatment of cash values are impressive). That lawsuit was literally the reason our industry now calls it: Life Insurance Retirement Plan (LIRP), or Insurance Based Retirement plan (IBRP). I expect this producer is being scrutinized for his other acts and alleged misconduct. I trust the rest of us can carry on promoting LIRP which is helping so many Americans supplement their retirement income...
Jay Judas - Ramona, yes, that's right -- thanks for the reminder. I think LIRPs are great when used with a VUL that has some guarantees that can be dialed in...and the client has some sophistication. The use of an IUL, though, leads to problems like in this case -- where poor performance can be linked to the complexity.
Ramona Neal, President, Living Benefit Review, LLC - Jay Judas in defense of other IULs - - I think what the one insurer did with their IUL - we simply had never seen before. At the time, some of my colleagues described it as having poison pills. Plural. Due to the mechanics of their unique design in how returns, credits, and charges interacted - it was so kindergarten to predict future lawsuits and future IUL regs. Both came to fruition. I will email you an example I ran years ago - showing illus values when all is rosy vs. illus values at lower returns. Their product wasn't for mom and pop. It was for a wealthy, savvy investor.
James Watkins, III JD, CEO/Managing Member at InvestSense, LLC - Thanks for posting. And where has the SC Insurance Commissioner been during this time? MIA?