- 2,452
yes they knew they could convert, but I don't recommend their UL because the rates aren't guaranteed. They do allow you to lower your face over the phone with either of the products.
2yr ROP or AARP?
- Thread starter TDFnCali
- Start date
yes they knew they could convert, but I don't recommend their UL because the rates aren't guaranteed. They do allow you to lower your face over the phone with either of the products.
- 26,145
Good to know.
_If_ cost was not an issue keeping both may be the safest.
I have used extended term or reduced paid up when replacing as well.
Thanks,
Lee
- Thread starter
- #13
- 3,165
I would love it if she could keep both for 2yrs, but thats WAAAYYYY out the question, the WL plan is already $30 more then shes paying now. And she does take meds for Alzheimers, but shes not a severe case....Ive seen severe cases before!
Whats the down side of AARP's UL? Prices arent guaranteed, I know that....but how long is the UL guaranteed? Can it run out? Any other drawbacks?
- 26,145
Good questions. She will need to get an illustration from the company. It probably has a minimum guaranteed period.
Its not guaranteed, that is the rub. The good thing is that they can't single out a policy holder and raise her rates, any raise in rates would be done on a block of business like any group or association plan would be. Rates could go up... key word being could, vs. a WL plan that isn't possible since it is guaranteed. For the purpose of this specific case, since she can't afford to keep both the term and a new graded WL policy... the conversion to the AARP UL plan is her best option. Whatever happens beyond that will be the risk she runs, but conversion is far less risky than continuing with the term which she knows will terminate at age 80.
- 26,145
That is unusual. Most ULs have a minimum guarantee. 5 yr, 10 yr, 15, 20. Normally she would be able to manage some of the risk by properly funding it.
- 19,648
It has no minimum timeframe. The policy says that rates can be increased at anytime. it is only as a group as previously mentioned.
That rate has never been increased to my knowledge. It's AARP's job to educate them on that. It's my job to educate people on the fact that it clearly states it's not guaranteed.
- 26,145
I would love to have a copy of a illustration or annual report for my anti AARP file.
My other point was if I was going to advise her to convert, I would finish the job by advising her to request illustrations showing different guarantee periods and let her decide. I may step out of the situation at that point.
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- 19,648
Just take one the next time you replace one. I understand about where you are wanting to show the guarantee periods but there are none.
The rates are subject to increase from day 1.
- 26,145
Not sure that I have ever run across the UL. I just ordered a quote from the website.
Thanks for your help.
Lee
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