Best Indexed Universal Life Companies & Policies of 2019 & 2020 - Banking Truths
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Best Indexed Universal Life Companies & Policies of 2019 & 2020

This ongoing review of the Best IUL Policies & Companies was last updated 10/2019.

[Update] The best indexed universal life companies will fluctuate from 2019 to 2020

Why?

By the beginning of 2020, all carriers will have to update their fees to adopt the newly created 2017 mortality tables and abandon the current 2001 mortality tables. Some of the best IUL companies have changed already, while others are waiting until November 2019 to continue offering the best IUL policies until year-end.

How will this affect who the best IUL companies in 2020 will be?

Since people are living longer thanks to modern medicine, the cost per unit of insurance will become cheaper across the board for IUL policies from all companies. However, this is just one ingredient in the formula determining the total amount of IUL fees that will drag against even the top-performing Indexed Universal Life policies of 2020 and beyond.

Along with the relative reduction in mortality charges, the parameters for MEC Testing are being revamped as well. Indexed Universal Life policyowners will be required to carry significantly more death benefit for any given premium amount they choose to fuel their IUL policy with.

So, although the cost per unit of IUL death benefit will be reduced, the total amount of death benefit that their premiums must buy will be increasing even more. Therefore, the total IUL fees will be greater using the 2017 mortality tables than they were using the current 2001 mortality tables (soon to be obsolete).

As the new top Indexed Universal Life policies are being released, we’re consistently seeing that this 10%-25% increase in necessary death benefit is often resulting in a 3%-15% reduction of cash value and income (depending on age, health, structure) even though the cost per unit of insurance has decreased.

The Best Indexed Universal Life Policies of 2019 and 2020

(Note) The Top IUL Companies discussed below are listed alphabetically (not by rank) because much will depend on the specifics of your situation, such as:

  • Age
  • Your retirement timeframe
  • Differing health ratings you may receive from the top IUL companies
  • Desired IUL premium schedule
  • Preference for more early cash value access vs. long term growth and income

 We invite you to book your own interactive session with us where we can show you how these factors above can impact the best Indexed Universal Life policies available in today’s marketplace.

Also, we have listed the criteria we consider most important when considering the best Indexed Universal Life companies and policies near the bottom of this article which you can skip to here.

So, without further ado… here are the best Indexed Universal Life companies of 2019 & 2020:

Columbus Life

Columbus Life is a top IUL carrier in 2018 with one of the best performing IULs.

Click to see the summary and highlights of Columbus Life as a Top IUL Carrier of 2018

 

Minnesota Life

As a top company for Indexed Universal Life, Minnesota Life has one of the best performing IUL products

Click to see the summary and highlights of Minnesota Life as a Top IUL Company of 2018

 

National Life Group (and Life of the Southwest) Conglomerate

National Life Group is a top Indexed Universal Life Carrier of 2018 with one of the best performing IUL products.

Click to see the summary and highlights of National Life Group as a Top IUL Carrier of 2018

 

Pacific Life

Pacific Life is one of the top IUL carriers of 2018 with one of the best performing Indexed Universal Life Insurance policies.

Click to see the summary and highlights of Pacific Life as a Top IUL Company of 2018

 

Penn Mutual

Penn Mutual has one of the best performing Indexed Universal Life policies and is a top IUL carrier for 2018.

Click to see the summary and highlights of Penn Mutual as a Top IUL Carrier of 2018

 

Honorable Mention #1: North American / Midland National Life Insurance Companies under Sammons

Midland National Life Insurance Company is a top Indexed Universal Life Insurance Carrier with a good IUL policy.

Click to see the summary and highlights of North American / Midland National Life Insurance as a Top IUL Carrier of 2018

 

Honorable Mention #2: Symetra Life

Symetra is truly one of the top IUL companies of 2018 with one of the best performing IUL policies on the market.

Click to see the summary and highlights of Symetra Life as a Top IUL Company of 2018

 


Here are the different criteria we consider when reviewing these companies that offer indexed universal life.

The top IUL carriers of 2018 that offer the best performing indexed universal life policies are some of the strongest and financially solvent companies.

These criteria below are factors we consider essential to be considered a top IUL carrier. That said, we may sometimes consider a company which lacks some of these criteria if a client has extenuating health circumstances. At times certain companies may be more forgiving with a particular underwriting issue than our favorite companies that offer indexed universal life insurance.

Unless an extenuating circumstance like this exists, we will stick with the top IUL companies that adhere to our standards below:

  • Is the insurance company offering the IUL policy a mutual insurance company vs. a stock insurance company)

Click here to understand why this is expected of top IUL companies:

  • Is the insurance company offering the IUL policy highly-rated relative to their peers, and do they maintain a healthy balance sheet surplus?

Click here to learn why this is required of a top IUL carrier:

  • Has the insurance company offering the IUL policy ever raised their internal costs and charges above what was originally illustrated to any client?

Click here to understand why this is expected of top IUL companies:

  • Has this insurance company offering the IUL policy maintained a competitive cap & floor as interest rates have declined?

Click here to learn why this is required of a top IUL carrier:

  • Does the insurance company’s IUL policy offer multiple ways to earn competitive growth?

Click here to understand why this is expected of top IUL companies:

  • Does the insurance company’s IUL policy offer a participating loan rate that is locked or capped against future increases in prevailing interest rates?

Click here to learn why this is required of a top IUL carrier:

  • How competitive are the insurance company’s provisions in case the insured becomes chronically/critically ill or injured?

Click here to understand why this is expected of top IUL companies:

  • Does the insurance company offer any other special riders or policy provisions that make their IUL policy particularly desirable?

Click here to learn why this is required of a top IUL carrier:

 

Now What?

To find the best performing Indexed Universal Life policy, consider having your own specific parameters run through an indexed universal life calculator from each of the top IUL carriers of 2018.

Click here to see how we at Banking Truths analyze and stress test policies for our clients (less than a 3-minute video).

You can click here or on the image below to schedule your own custom consultation with one of our independent agents so they can do this type of individualized custom analysis for you.

the Banking Truths team helps people buy the best performing IUL policies from the top IUL companies of 2018

Happy Banking,

John “Hutch” Hutchinson

ChFC®CLU®EAAEP®CExPs®


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