Is there a way to get a quote on this? I got a replacement notice that my clients are replacing my Guaranteed UL with an ART....the agent is "saving them money." This is such a crap product that I don't even have a company that writes it...is there a place online that I can see an illustration for 300k for a 57 yr old male? I'm not concerned with the first year cost, I want to see the renewal premiums...thanks in advance.
Annual Renewable Term
- Thread starter jemelton
- Start date
- 2,758
What state and health rating? A lot of the big carriers offer ART...
- Thread starter
- #4
- 742
Lot's of them;
SBLI
MetLife
Prudential
ANICO
AXA
Transamerica
Because I hate when agents do that--if you find out which carrier and if I can illustrate it, I will send you the illustration to push back on your clients. It will show future years premium. Send me a PM
edit: $300k, M58 at Standard runs $450-900/annual for first year.
SBLI
MetLife
Prudential
ANICO
AXA
Transamerica
Because I hate when agents do that--if you find out which carrier and if I can illustrate it, I will send you the illustration to push back on your clients. It will show future years premium. Send me a PM
edit: $300k, M58 at Standard runs $450-900/annual for first year.
Pru is 436/yr 1. Yr 5 is 3700. Yr 10 is 11,227. Yr 15 is 17,821. Only convertible in the first 5 years. All values are guaranteed (which is not always the case with ART).
ANICO is 483/yr 1. Yr 5 is 1137. Yr 10 is 2475. Yr 15 is 26,664. All values guaranteed. Convertible to 65 and renewable to 75.
National life has premiums that will total approximately the same as a GUL for the first 20 years (convertible to 85, renewable to 95) but they are not guaranteed. The guaranteed premiums are very pricey.
Other companies that offer ART are AXA, Pac Life, Met, NYL, Ameritas, TransAmerica, TIAA CREF, Northwestern, and others. It can be useful in short term business situations.
Considering a similar face GUL is only a little over 5k, hopefully this helps.
- 24,967
Send me an email and I will send you a compulife spreadsheet that will show him the agent could have dinw better with a 10 year. Poison the well. Then you resell the benefit of your plan. Or rewrite him yourself. First gut the other agent.
Mass has ART as well...
Sorry to get to you so late on this one but ART is a big sore spot for me (I've made prior comments regarding it) tell him to look at the premium sometime between year 3-6 (if NT)- it usually EXPLODES by 3-5x the original premium. By year 8-10 it's usually 5-8x original premium. So whenever you see ART ask them- Do you want to redo your program every three to five years and roll the dice that you stay healthy and maintain your rating class or would you like to have your program done right the first time and revisited if something changes financially? Or would you rather be chasing premium dollars on ART that gets more and more expensive and WILL need to be replaced before it becomes a live hand grenade in your hand.
If this is a bridge product for 3-5 years only, fine. It serves a purpose and use and such, but don't make this into something to cover some for their whole adult life.
- 1,405
ART is a stupid product to buy, unless you need insurance for 2 or 3 years. Even then, it often looks stupid for that.
I have run an Interest Adjusted Cost Analysis with a no lapse UL product versus an ART policy. The PDF file/schedule is attached.
In the example I selected, the ART buyer saves money for 12 years and then runs rapidly aground.
Of course the question I have to ask is what was the reason for the insurance purchase in the first place. If the need was for term life insurance, and the no lapse UL was sold for that, then the policy was always going to be exposed to a term replacement. On the other hand, if the need was permanent, not only will the ART not address the problem, neither will a 10 or 20 year term.
So what the purpose of the policy?
If you asked the client, why did you buy it, what would he say?
I have run an Interest Adjusted Cost Analysis with a no lapse UL product versus an ART policy. The PDF file/schedule is attached.
In the example I selected, the ART buyer saves money for 12 years and then runs rapidly aground.
Of course the question I have to ask is what was the reason for the insurance purchase in the first place. If the need was for term life insurance, and the no lapse UL was sold for that, then the policy was always going to be exposed to a term replacement. On the other hand, if the need was permanent, not only will the ART not address the problem, neither will a 10 or 20 year term.
So what the purpose of the policy?
If you asked the client, why did you buy it, what would he say?
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