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Minnesota Life Equity Index Universal Life Policy Gets Better September 12, 2013

Posted by shaferfinancial in Uncategorized.
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My #1 rated EIUL is currently The Eclipse by Minnesota Life.  This month it improved the future performance by adding in a interest bonus.  As usual they accomplished this in a way that allows for better performance and safety.  Since inception 11 years ago this has been the top performer in the industry.  I think this change keeps it there.  Also of interest is that the change applies to anyone that currently owns the policy.

 

The way the bonus works is that a bonus interest is added to the account value every year after year 10.  The bonus is calculated by adding up the previous 10 years worth interest credits and multiplying by 1%.  Once the bonus is received it is then counted in the addition for all future years so it is a compounded interest credit.

The company has calculated that this will raise the accumulated cash and potential distributions by between 13% and 18%.  I ran my first illustration using the bonus and it really adds value.  Obviously the longer you have to get the bonus the more value.  

I also recently had a very good underwriting decision for a client, the best I have seen for this particular situation.  

When I look at which EIUL to suggest to clients I look at the entire picture:

Minnesota Life

  1. Retroactively added in a benefit to existing policy holders;
  2. Added in a bonus that provides additional performance along with safety; and
  3. Great underwriting decisions for clients.  

Three more reasons to keep Minnesota Life #1!

 

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