10 Pay Plans

[BenS]

Need a little help here... I'm not very sharp when it comes to how 10 pay life plans work in regards to cash value and other benefits. I have a woman that would like to purchase life insurance for her granddaughter. I'm assuming a 10-pay is the best option since she can afford it. All I have access to at the moment is the plan the Monumental offers.

Basically my only knowledge regarding these products is that premiums will not need to be paid after 10 years, which was enough to get her to go with it. However, I really don't know what else can be done with these for the child once they become adults. Specifically...

- How quickly does the CV accumulate? How much would they have in 10 yrs, 20 yrs?

- What other benefits do these plans have to the client other than not having to pay the premium after 10 years? Are people using them for college tuition, etc?

The only illustrations I can find online are from mutuals, which I'm assuming are different than this. Thanks!

 

[rousemark]

Need a little help here... I'm not very sharp when it comes to how 10 pay life plans work in regards to cash value and other benefits. I have a woman that would like to purchase life insurance for her granddaughter. I'm assuming a 10-pay is the best option since she can afford it. All I have access to at the moment is the plan the Monumental offers.

Basically my only knowledge regarding these products is that premiums will not need to be paid after 10 years, which was enough to get her to go with it. However, I really don't know what else can be done with these for the child once they become adults. Specifically...

- How quickly does the CV accumulate? How much would they have in 10 yrs, 20 yrs?

- What other benefits do these plans have to the client other than not having to pay the premium after 10 years? Are people using them for college tuition, etc?

The only illustrations I can find online are from mutuals, which I'm assuming are different than this. Thanks!

Ben: Cash values will vary from company to company and even product to product within the same company. A 10 pay life will build cash value more quickly than a life pay simply by virtual of the larger premium per thousand.

Most limited pay WL written on children are simply legacy policies to be given as a gift to the child that they will have all their life. . Most are not going to give a good ROI at the end of 10 or even 20 years.

 

[TDFnCali]

Need a little help here... I'm not very sharp when it comes to how 10 pay life plans work in regards to cash value and other benefits. I have a woman that would like to purchase life insurance for her granddaughter. I'm assuming a 10-pay is the best option since she can afford it. All I have access to at the moment is the plan the Monumental offers.

Basically my only knowledge regarding these products is that premiums will not need to be paid after 10 years, which was enough to get her to go with it. However, I really don't know what else can be done with these for the child once they become adults. Specifically...

- How quickly does the CV accumulate? How much would they have in 10 yrs, 20 yrs?

- What other benefits do these plans have to the client other than not having to pay the premium after 10 years? Are people using them for college tuition, etc?

The only illustrations I can find online are from mutuals, which I'm assuming are different than this. Thanks!

Ben, just FYI.....RNA has a 20yr too, which would be cheaper & Im sure RNA is cheaper per 1000 too!

 

[rousemark]

Another thing to consider is writing a whole life for the same premium you would consider for a 20 pay, if you can get a copy of your company's forfeiture schedule.

With most companies, a $50K life pay WL will cost about the same as a $25k 20 pay WL. However, the $50k will often have around $25K reduced paid up insurance available at the end of 20 yrs. The advantage is that the client has twice as much coverage during the premium paying years and the same amount paid up at the end of 20yrs.

 

[tins]

Another thing to consider is writing a whole life for the same premium you would consider for a 20 pay, if you can get a copy of your company's forfeiture schedule.

With most companies, a $50K life pay WL will cost about the same as a $25k 20 pay WL. However, the $50k will often have around $25K reduced paid up insurance available at the end of 20 yrs. The advantage is that the client has twice as much coverage during the premium paying years and the same amount paid up at the end of 20yrs.

That's so cool! I just ran a couple of illustrations and it came out just like that.

Learn something new everyday.

 

[rousemark]

That's so cool! I just ran a couple of illustrations and it came out just like that.

Learn something new everyday.

You doubted me??? BTW, what company are you illustrating?

 

[RonRoberts]

You doubted me??? BTW, what company are you illustrating?

What company do you recommend, and are we only talking simplified issue?

BTW, your posts are worth a pot of gold.

Ron

 

[rousemark]

What company do you recommend, and are we only talking simplified issue?

BTW, your posts are worth a pot of gold.

Ron

Don't have a recommendation but it pretty works the same way with non par standard issue and simplified issue.. It is something we used when I was working the debit back in the 70s and competing with agents from other debit companies that like to write 20 pay life. You can send that pot this way anytime.. Louis