Agents don't mention PUA rider, why?

[VolAgent]

It's 3% on every PUA premium for 30 years or so? On that 10k premium, if 5k is base and 5k pua premium, Agent gets 5k in commissions upfront and gets $150 every year for the next 30 years. If I were an agent, I would prefer a passive $150 to $5000 more upfront.

$5000 up front beats $4500 over next 30 years...

I wasn't there so I'm going to refrain from Monday Morning QBing this guy. There are lots of reasons he may have recommended what he did. And there are lots of reasons he may have gotten upset when you mentioned another design, the first of which is yours would never work.

 

[pfg1]

I have seen Guardian illustration where $2400 is base with the ability to dump in a total of $24k in PUAR.

Can you post that illustration? Just curious to see how that is designed and if its a MEC or not.

 

[VolAgent]

Can you post that illustration? Just curious to see how that is designed and if its a MEC or not.

Same here.

 

[ls015]

Can you post that illustration? Just curious to see how that is designed and if its a MEC or not.

 

[VolAgent]

That explains a lot. One, the additions are only made for 5 years, not lifetime. Two, there is a term rider to increase the death benefit so those additions can be made for 5 years.

 

[ls015]

That explains a lot. One, the additions are only made for 5 years, not lifetime. Two, there is a term rider to increase the death benefit so those additions can be made for 5 years.

that was by design. wanted to see what happens if i stop after 5 years. i can choose to continue. Term blending if it gives me 1:10 pua, thats fine by me.

 

[VolAgent]

that was by design. wanted to see what happens if i stop after 5 years. i can choose to continue. Term blending if it gives me 1:10 pua, thats fine by me.

Go for whatever works for you. I was getting the impression, and I guess others were too, it was 10:1 with no other riders or anything else. Also, how long the money goes in will make an impact, there are a lot of calculations that go into whether it is a MEC or not.

Finally, I am not familiar with Guardian's software, is there any warning anywhere about being a MEC?

 

[ls015]

Go for whatever works for you. I was getting the impression, and I guess others were too, it was 10:1 with no other riders or anything else. Also, how long the money goes in will make an impact, there are a lot of calculations that go into whether it is a MEC or not.

Finally, I am not familiar with Guardian's software, is there any warning anywhere about being a MEC?

It's definitely not a MEC. I am sure of that.

I am more concerned about direct recognition loans of Guardian, Penn. Mass has non-direct recognition but not a PUAR.

 

[DHK]

Mass calls it ALIR - Additional Life Insurance Rider. Same function.

 

[ls015]

Mass calls it ALIR - Additional Life Insurance Rider. Same function.

He designed it with LISR but not ALIR haha.
Just looked it up. It has 7.5% service charge vs 2% of Guardian.