Anyone Familiar with American General Life Policies?

[crimsontideagent]

At the end of the day today I called about a potential clients' policy. Thought it was a UL or IUL based on what he said - he even thought it was UL. After entering the info on automated system, it said it was a whole life. I was happy because we feared there was surrender charges if we 1035'd it.

Well, the rep told us that the cash value was $358,000 but the surrender was only $198,xxx.. I had never heard of a whole life with surrender. She then proceeded to tell us that they were either 10, 15 or 19 YEARS! Holy crap, have you ever heard of such...?

He is digging up the actual contract tonight to find out for sure. Hoping it's just a 10 year one... but would the difference be that much if just one more year or less? He's had 9+ but not 10.

 

[rocky top buzz]

Yes, 10-20 year surrender periods on life insurance contracts is not un-common. But to have a surrender charge of 40% in year 10? That does not sound right.

Did you get an inforce ledger?

 

[crimsontideagent]

Yes, 10-20 year surrender periods on life insurance contracts is not un-common. But to have a surrender charge of 40% in year 10? That does not sound right.

Did you get an inforce ledger?

Ordered it.

Yes I'm familiar with 10-20 on UL's, especially older one, but not on whole life.

Same thinking here on the 40%... Nuts.

 

[DHK]

Doesn't sound right to me.

I'd re-verify with a live human being that the policy is a whole life policy. Just because a computer said it, doesn't mean that the computer got it right.

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BTW, I have heard of variable whole life. My father has one. But it still looks, acts, and is treated exactly as a VUL.

Maybe you've got some kind of hybrid plan on your hands here?

 

[crimsontideagent]

Doesn't sound right to me.

I'd re-verify with a live human being that the policy is a whole life policy. Just because a computer said it, doesn't mean that the computer got it right.

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BTW, I have heard of variable whole life. My father has one. But it still looks, acts, and is treated exactly as a VUL.

Maybe you've got some kind of hybrid plan on your hands here?

I don't know...curious though. I will update my findings.