A 62 year old I have was offered a cheaper Universal Life policy with a power premium than my best Final Expense. I have never sold UL but have heard of some calling for higher premium later or running out and cancelling. Is my only answer that FE is stable for price and face amount?
62 Year Old Offered UL Instead of FE
- Thread starter Southpaw
- Start date
Depends on how it was structured. Some have a continuation rider -to keep in mind, which in my opinion defeats the purpose or a purpose of having a UL but not bad none the less. Based on illustrations alone they do ok and last pretty long, but once again depending on how and what numbers are used.
That would be a good start but what are his goals or objective? Is he looking for just FE?
From what you posted alone, cheap and UL doesn't quite go hand in hand. At least to me it doesn't.
Hopefully one of the FE guys can chime in.
That would be a good start but what are his goals or objective? Is he looking for just FE?
From what you posted alone, cheap and UL doesn't quite go hand in hand. At least to me it doesn't.
Hopefully one of the FE guys can chime in.
- 17,063
UL policies are flexible premium. So yes they will always be lower. They can pay any amount they want to.
If they want it to be guaranteed they need whole life or possibly GUL if they want a larger policy. But regular UL is not for people who don't understand UL. They may as well be flushing their money down a toilet.
- 4,300
Your client was probably sold "Guaranteed Universal Life" policy, meaning that if they pay the minimum premium, it's guaranteed not to lapse. The guarantee can be anywhere from just a few years, or up to a certain age (like age 90 or 100, or maybe 121). The problem is, though, if they miss just one premium payment they may lose the no-lapse guarantee. Same thing can happen if they access the cash value through loan or withdrawal. For most FE clients, this is a ticking time bomb!
Here's a blog post by a broker explaining the pros and cons (see con #3 for what I just described): https://www.rootfin.com/guaranteed-universal-life-insurance-pros-and-cons/
- 4,300
Here's a lengthier white paper about GUL policies that was posted on the NAIC website. You could show your client the underlined item in paragraph #1.:
http://www.naic.org/documents/committees_a_liii_wg_160517_assurity_white_paper.pdf
http://www.naic.org/documents/committees_a_liii_wg_160517_assurity_white_paper.pdf
- 26,086
Can, may, could.
For final expenses or "final expense market"?
I have GULs on the books that have missed payment, taken loans, reduced face amounts and still maintained the guarantee.
When comparing GUL and SIWL plans you need to put the same premium into the GUL as the SIWL plan. To do a closer apples to apples. IMHO.
GUL is not appropriate for some people same as a WL plan with 4 tables built in is not appropriate for some.
Some GULs may have more guarantees and safe guards than some FE plans.
I have written GULs on 70 year olds and FE on 20 year olds. Both were appropriate.
For final expenses or "final expense market"?
I have GULs on the books that have missed payment, taken loans, reduced face amounts and still maintained the guarantee.
When comparing GUL and SIWL plans you need to put the same premium into the GUL as the SIWL plan. To do a closer apples to apples. IMHO.
GUL is not appropriate for some people same as a WL plan with 4 tables built in is not appropriate for some.
Some GULs may have more guarantees and safe guards than some FE plans.
I have written GULs on 70 year olds and FE on 20 year olds. Both were appropriate.
- 26,086
Sagicor is non med up to 65 and goes down to $25,000. Can be approved in minutes. They also have a Rated GUL. In the t3-t4 range.
- 17,063
There is some discussion of GULs for FE people on this interview with a leading industry expert.
http://www.selltermlife.com/selling-final-expense/
http://www.selltermlife.com/selling-final-expense/
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