Agents don't mention PUA rider, why?

[pfg1]

Hope my agent is not showing me "illusions"

LOL

Well the one thing for sure... from day 1, the actual performance will not match the illustration with any cash value product. It could/should be close though, if funded as assumed.

Max funded WL or IUL is a great product, and a great diversifier in your overall portfolio, that has excellent potential if designed well and funded properly. You mentioned DI... that is good also, assuming you could have a need for it. LTC is another product - none of us knows if we will need that, and most folks don't want to buy it. Hybrids are an option.

 

[junkman]

All illustrations are illusions. Buy, or as agent sell if you can live with the guarantee.

As far as what else can be sold, just wait. Things change as do appropriate products for the situation.

I'm reminded of a college professor who almost had to be strong armed to put $50 / month into a fixed 403b annuity. He got excited when he realized that this was growing and he eventually maxed out his contributions. He's been happy with the guaranteed 5% given recent low rates and taken a monthly check for at least 15 years.

I was new in the business and lucky in product selection. Client was lucky and fortunate too. Sometimes we win and do good things.

 

[Allen Trent]

Hope my agent is not showing me "illusions"

By exact definition of the word illusion, it is in most cases: "a thing that is or is likely to be wrongly perceived or interpreted by the senses"

 

[Lloyds of Lubbock]

Option Q is a one year term option.
It can be funded with a regular paid up add or you can choose the index option.
You can allocate a percentage of your pua into the index or 0 and change at a later date.
If you run an illustration (illusion) with 50% in the index you may find the increase in cash value is not worth the risk.

 

[ls015]

Depends on the loan interest rate. Guardian has 8% fixed loan rates - which, in today's interest rate environment, is quite high compared to other companies.

My agent gave a kind of strange explanation to my "objection". According to him, Guardian changed the loan rate to 6% in 2016 and they match the dividend to the loan rate so that it's a wash. Can anyone confirm this?

 

[DHK]

I'm not a current (or even a former) Guardian agent. My information was from a Guardian Product Overview published originally in 2014 and had an expiration date of 6/2016.

So, it is *entirely possible and plausible* that my information is completely out of date. Naturally, it's easy to assume that, at the time, an 8% fixed loan rate would stay at that level ongoing - particularly considering the current interest rate environment. But I'm also one to hate the word *assume*.

In fact, here's an updated one that shows the 6% loan rate. It's not meant for the public, but since it's searchable, here it is.
https://agents.disabilityquotes.com/library/PUB4126BKR11_17.pdf

 

[Lloyds of Lubbock]

On older policies, the 8 percent loan rate goes down to 4 percent the later of age 65 or 20 years.
There are different loan spreads along the way.
The new policies have a 6 percent initial rate.
You also have the ability to elect a variable interest rate at the end of the 20th year.
The actual net cost to the client between the two is exactly the same.
All this can be avoided by collateralizing your policy with a bank and getting a current interest rate and a possible tax deduction.
Guardian has a 7 year own occ deg of disability.
Their waiver covers pua deposits.
Their pua waiver is extremely liberal
The ltc rider is an indemnity plan, rare in this industry.
The gio is one of the best available and is covered by waiver.
They have an index option, that many find appealing.
The gom charge is a lower rate than the other mutuals..
You may not want to buy guardian as there are other fine companies out there.
But to make your decision based on direct recognition is ridiculous.

 

[junkman]

There are moving parts that are only estimated. Look at guaranteed amounts given the premium schedule and withdrawals you want. The method used to take money out ie withdrawal, surrender of pua or loans matters and you won't know the effect unless you actually run an illustration.

You can control premiums/withdrawals. All else is up to the carrier. Be satisfied with worst case and you'll be satisfied with the product.

A small private school had policies donated and we ran numbers every way we could think of to make sure we didn't over promise. Even then, things changed including the willingness to fund premiums and there was less cash available than illustrated. Always run an illustration when varying from the original plan. It will save hard feelings. Do updates annually to stay on top of the situation if cash accumulation is 1 reason for the sale.

 

[ls015]

Thanks for all the posts. One other question I have is why do agents push L99 kind of policies instead of 10 pay? I would want to be done with 10 years of premium and also, won't the cash value build better in 10 pay than if it is spread out till 99?

 

[junkman]

Depends on how much money clients have. Also, any illustration where premiums vanish are in the category of illusions and frequently don't turn out as expected.

Run the guarantees.