AIG Coming soon LIMITED PAY Guaranteed Issue Whole Life

[Northeast Agent]

As of July 24, 2020 a new version of the Guaranteed Issue Whole Life (GIWL)1 product will be replacing the currently offered one. This new version has a Limited Pay feature, revised premium rates, and a maximum issue age of 80.

Limited Pay Design

Required premium payments will now stop once the insured reaches a specified age as defined in the contract. Maximum payment age will range from ages 82 to 90.

Revised Issue Ages

Ages 50 to 80. (Previously 50-85)

Premium Rates

Premium Rates per $1,0002 will be increasing by 2.5% for all insureds with the exception of males ages 78 to 80 where there will be a premium decrease.

What's Not Changing

Guaranteed issue permanent protection: No health questions to answer, no medical tests. Guaranteed acceptance with face amounts from $5,000 to $25,000 available.3

Innovative accelerated benefits included at no additional charge including Chronic Illness and Terminal Illness accelerated death benefit options.4

State Approvals

As of July 8, 2020 the new Limited Pay GIWL product is not approved in California, where the currently offered product will remain available and unchanged.

 

[rousemark]

As of July 24, 2020 a new version of the Guaranteed Issue Whole Life (GIWL)1 product will be replacing the currently offered one. This new version has a Limited Pay feature, revised premium rates, and a maximum issue age of 80.

Limited Pay Design

Required premium payments will now stop once the insured reaches a specified age as defined in the contract. Maximum payment age will range from ages 82 to 90.

Revised Issue Ages

Ages 50 to 80. (Previously 50-85)

Premium Rates

Premium Rates per $1,0002 will be increasing by 2.5% for all insureds with the exception of males ages 78 to 80 where there will be a premium decrease.

What's Not Changing

Guaranteed issue permanent protection: No health questions to answer, no medical tests. Guaranteed acceptance with face amounts from $5,000 to $25,000 available.3

Innovative accelerated benefits included at no additional charge including Chronic Illness and Terminal Illness accelerated death benefit options.4

State Approvals

As of July 8, 2020 the new Limited Pay GIWL product is not approved in California, where the currently offered product will remain available and unchanged.

Sounds like the old GI plan we were writing with AGLA in 2005

 

[Baseball7]

Funny thing is is they terminated me because my mortality rate was unacceptably high. I thought everybody died especially guaranteed issue prospects?

 

[FETalk]

As of July 24, 2020 a new version of the Guaranteed Issue Whole Life (GIWL)1 product will be replacing the currently offered one. This new version has a Limited Pay feature, revised premium rates, and a maximum issue age of 80.

Limited Pay Design

Required premium payments will now stop once the insured reaches a specified age as defined in the contract. Maximum payment age will range from ages 82 to 90.

Revised Issue Ages

Ages 50 to 80. (Previously 50-85)

Premium Rates

Premium Rates per $1,0002 will be increasing by 2.5% for all insureds with the exception of males ages 78 to 80 where there will be a premium decrease.

What's Not Changing

Guaranteed issue permanent protection: No health questions to answer, no medical tests. Guaranteed acceptance with face amounts from $5,000 to $25,000 available.3

Innovative accelerated benefits included at no additional charge including Chronic Illness and Terminal Illness accelerated death benefit options.4

State Approvals

As of July 8, 2020 the new Limited Pay GIWL product is not approved in California, where the currently offered product will remain available and unchanged.

I'm surprised that a big insurance company like AIG doesn't have a regular FE product.

 

[Tahoe Ray]

I'm surprised that a big insurance company like AIG doesn't have a regular FE product.

How many big insurance carriers have a regular FE product besides Trans?

 

[FETalk]

How many big insurance carriers have a regular FE product besides Trans?

True, but most big companies also don't have a guaranteed issue final expense product either. It's kinda like they're only dipping their toe into the FE market. The same thing goes for Gerber life as well. Just an observation.

 

[WinoBlues]

I'm surprised that a big insurance company like AIG doesn't have a regular FE product.

Some of that may be due to the numbers and the perception of the numbers.

Traditionally traditional companies wanted 'clean' business.

Bank draft or annual mode, from employed healthy people, traditionally home owners. No NSF and strong persistency. Sold by traditional agents that sat with their clients and reviewed their insurance and needs. Not the Ed Niersons (sp). Primerica started change that.

That is not FE to traditional agents.

 

[FETalk]

Some of that may be due to the numbers and the perception of the numbers.

Traditionally traditional companies wanted 'clean' business.

Bank draft or annual mode, from employed healthy people, traditionally home owners. No NSF and strong persistency. Sold by traditional agents that sat with their clients and reviewed their insurance and needs. Not the Ed Niersons (sp). Primerica started change that.

That is not FE to traditional agents.

I hear what you're saying, but you would think that these companies would view getting into the the traditional FE field as a far safer bet (and more lucrative) than getting into the guaranteed-issue market.

Which why I posed the questions.

 

[rousemark]

I hear what you're saying, but you would think that these companies would view getting into the the traditional FE field as a far safer bet (and more lucrative) than getting into the guaranteed-issue market.

Which why I posed the questions.

GI market is a lucrative market when you write it direct. And, I guess it is even when you use agents since so many do it...However, with agents, you do get more adverse selection because they don't put their healthy clients in FE..

 

[WinoBlues]

I hear what you're saying, but you would think that these companies would view getting into the the traditional FE field as a far safer bet (and more lucrative) than getting into the guaranteed-issue market.

Which why I posed the questions.

Sadly the GUL market seems to be drying up. Same with the ROP term and GUL products. Actually not the market but the offered products.