2yr ROP or AARP?

[jacobtn]

I went online and gave my dad's DOB to get a mailed quote for their life insurance. I use it all the time when I come up against it, and highlighted the section that JD is referring to.

What really pisses me off, is when you call AARP/NYL, once you get passed the first level of CSR reps and get transferred to an agent (the only ones that can quote the future rates at the 5 yr bands), they will lie and say the rate is guaranteed to never go up. I have had them do that with me before, of course when asked if they would put it in writing they refused.

I actually had one guy from up there ORDER me to put "their client" on the phone after he gave authorization to speak to me to the guy. He had denied that it was UL, said it was whole life and asked why I would dare replace their policy that had been in effect since 2007 (I never told him I was going to replace it but I guess they know what's going on by now). I asked him where does it say whole life? Nowhere in any of their paperwork does it reference whole life, only group "permanent" life. He yelled at me and asked to "speak to their client". I hung up on him, and he couldn't call the clients back because they had changed phone numbers a month earlier.



There are some real jewels up there at NYL.

 

[SportsNut]

There are some real jewels up there at NYL.

Yes, but imagine the phone calls that they must get daily... the CSR/Agent must attempt to offset the truth (no-gaur UL) with the fuzzy story, to field Agents that know better. They must lose an awful lot of those conversations, wouldn't you guess?

 

[GoCubsGo]

On the web site they got in the words "WHOLE LIFE". Look at the quote from the lady. ha

Image:

 

[SportsNut]

"I wanted life insurance I could keep my whole life...
without having my rates increase just because I got older"

Decoded: She can keep it her entire life, it is non-cancellable, rates won't go up as she gets older [implication that rates won't go up] but the rates are NOT guaranteed and could increase if the business model, interest rate estimates and mortality risks for the block of this business required a risk-rate adjustment. So if rates were to rise and she paid the new higher rate(s) she could keep her insurance forever as long as she pays the then/new premium.

But, they are NOT saying that it is Whole Life Ins... merely implying it.

 

[WinoBlues]

"I wanted life insurance I could keep my whole life...
without having my rates increase just because I got older"

Decoded: She can keep it her entire life, it is non-cancellable, rates won't go up as she gets older [implication that rates won't go up] but the rates are NOT guaranteed and could increase if the business model, interest rate estimates and mortality risks for the block of this business required a risk-rate adjustment.

But, they are NOT saying that it is Whole Life Ins... merely implying it.

You have to wonder how they get away with that. I just ordered a quote be mailed to me. It will be interesting to see the wording.

 

[TDFnCali]

After reading all this, it seems JD's option (which others confirmed is the best option) is still lousy & having a WL policy, even with a 2yr ROP is better! Again, Im not saying it is better, it just doesnt seem like its worst at this point....its not clear cut!!

Good Grief Charlie Brown!

 

[jdeasy]

After reading all this, it seems JD's option (which others confirmed is the best option) is still lousy & having a WL policy, even with a 2yr ROP is better! Again, Im not saying it is better, it just doesnt seem like its worst at this point....its not clear cut!!

Good Grief Charlie Brown!

How is it not clear cut? The only real option is for her to convert the policy. There is no other way to handle this except to have two policies and then cancel the term once the whole life is 2 years old.

I certainly hate to be a position to recommend AARP but in this case it's the only viable option for her. May not be best for you but it is best for her.

Sometimes I run into someone where Humana is their best option. Humana is the debil and I hate the debil. I do not try to fit them into something else though. I send them to a Humana agent.

 

[TDFnCali]

How is it not clear cut? The only real option is for her to convert the policy. There is no other way to handle this except to have two policies and then cancel the term once the whole life is 2 years old.

I certainly hate to be a position to recommend AARP but in this case it's the only viable option for her. May not be best for you but it is best for her.

Sometimes I run into someone where Humana is their best option. Humana is the debil and I hate the debil. I do not try to fit them into something else though. I send them to a Humana agent.

I wasnt referring to it being the best for me, which I would like it to be, but it doesnt always work out that way, I get it! But a non-guaranteed UL?? Just doesnt seem like that is that much better...yes, its better, but not by a land slide by no means!

 

[jdeasy]

I wasnt referring to it being the best for me, which I would like it to be, but it doesnt always work out that way, I get it! But a non-guaranteed UL?? Just doesnt seem like that is that much better...yes, its better, but not by a land slide by no means!

She has immediate coverage now that is out of contestability. How would putting her in an ROP plan improve that situation?

 

[TDFnCali]

She has immediate coverage now that is out of contestability. How would putting her in an ROP plan improve that situation?

I never said it would improve it, I actually said your option is the best, I just dont think its by a lot. It does improve it AFTER 2yrs, but during the 1st 2yrs it makes it worst....the UL makes it better immediately but long term theres some risk. Thats all I was alluding to!

And we all agree keeping both for 2yrs is the absolute best, of course!

I got another question along these same lines....I had another client in this same situation a week ago, EXCEPT he had other policies (all WL) adding up to apprx 25k. I replaced his 1 term (10k AARP) to WL with a 2yr ROP, but he still has 15k inforce with others....would u have done that? Or would u still have him convert it to AARPs UL??