20 pay options

[bnice1]

I have a client that has a 20 pay for a 11 yr old with NYC and wants to compare with some other companies.

 

[goillini52]

I have a client that has a 20 pay for a 11 yr old with NYC and wants to compare with some other companies.

Gender and Face Amount?

 

[bnice1]

Female 500k

 

[Lloyds of Lubbock]

how old is the policy?

 

[bnice1]

8
months

 

[bnice1]

She's an 11yr old female and their paying $400 for a 20 pay $500k

 

[DHK]

She's an 11yr old female and their paying $400 for a 20 pay $500k

Do you know how life insurance works?

I'll let Guy Baker help on this:


Okay, so let's summarize your one sentence of what is going on:

• The insured is 11 years old
• Paying $400 a month for 20 years = $4,800 per year for 20 years = $96,000 in premium payments until she's 31.
• So she will have $500,000 in guaranteed cash values at age 121 (maturity date).
• Through dividend performance (which is not guaranteed), she'll more than likely grow a very healthy cash value policy faster than is shown on the guaranteed column that can be leveraged (borrowed against) for college, wedding, starting a business, buying a home, or just about anything else.

Now, if you want to pay LESS for similar coverage... then the option is to cancel what she has and purchase a TERM policy OR a minimum-pay whole life policy that has premium payments to age 121 (or thereabouts).

This will have slower cash value growth (or none in the case of term insurance).

But this is essentially 1/2 of a "million dollar baby" type of sale.

Why are you looking to replace this? Or, more accurately, why does the client believe that they may want to replace this?

 

[bnice1]

I just thought if you put this in a IUL for cash accumulation you'll have more cash value.

 

[WinoBlues]

Is the primary goal cash value, a paid up policy in 20 years or face amount?

 

[bnice1]

cash value