1st Ever Annexus IUL Product Review (Good or Bad?)

Most advisors don’t know there is such a thing as an Annexus designed IUL. I hesitated to give Annexus any press with my newsletter (because I will NEVER recommend an Annexus product), but I figured advisors needed to know.

What is Annexus?  It’s a product design firm (they design FIAs and IULs and get insurance companies to offer their designed products). Annexus products are typically “limited distribution” products (only select IMOs have access).

Nationwide New Heights® IUL Accumulator—One Annexus IUL is on Nationwide paper.

Download Two Actual Annexus IUL Illustrations

To download and review two different Annexus IUL illustrations, click on the following: https://advisorshare.com/annexus-illustrations

Roccy’s Top 18 IUL List

Where would the New Heights® IUL fit on our Top 18 IUL list? If it were on the list, it would come in at #13! To download my top 18 IUL list, click on the following link: https://advisorshare.com/top-18-iul-sign-up

Is an illustration showing interest being paid back misleading?

What really facilitated this newsletter was the EXTREMELY ODD New Heights® illustration that came across my desk. I’d never seen anything like it. Let’s examine two illustrations below.

The image on the left is a typical illustration showing borrowing of $60,000 a year. The one on the right shows borrowing of $107,861.  Which one do you like better? The $107,861 of course.

The net amount the client receives is in the right column (net annual outlay). That looks pretty good vs. the $60,000 annual loans on the right.

What does the illustration on the right look like in the later years? A horror story!

Loans still look awesome at $107,861, but the net in pocket to the client not only goes to zero, but at age 87, the client has net negative cash flow (he owes money to the company).

The net cash flow different between the #1 IUL product and this wacky illustration is as follows:

Question…why would anyone use the Annexus New Heights® IUL? I have no idea.
Question…why would any advisor work with an IMO recommending this product? I have no idea.

My general thought about Annexus designed FIAs and IULs

I will NEVER use an Annexus product (even it if illustrated well). Why? Trust! My reputation in the industry as someone who tries very hard to be transparent and to ALWAYS give advice that is in the client’s best interest is what I value most. And while newsletter readers do not always like my tone, they do not question my professional ethics. The bi-product is that thousands of my readers “trust” that my information can be relied upon to help them give the best advice to their clients.

How does my reputation play into recommending Annexus products?

Click on the following and you’ll know why…https://advisorshare.com/trust