Davekauz
New Member
I have a client that wants away from a 15k mo DI for 5yrs at about $80 mo with NWML. Any idea's? He is ns 34 excellent health. Loan officer at a mortgage co
Best Alternatives to NWM DI?
- Thread starter Davekauz
- Start date
- 10,328
Is this an existing policy? If so, tell him to keep it, he wont find a better premium.
If he makes more now, try layering policies to add to the coverage. Maybe look at a long elem period but have benefits go out to 10y or age 65.
The biggest issue with the current policy is the short 5y benefit period.
Did he buy it when he was 22 years old? That appears to be a cheap pollicy if those are the numbers.
Lloyds of Lubbock
Guru
- 714
What is the elimination period?
Why not add another policy with a long elimination period?
Why does he want to walk away from it?
Guardian, Mass, Standard to name a few have good products.
You would need to look to see what the definition of disability is based on his occupation.
Also how old is the policy?
Why not add another policy with a long elimination period?
Why does he want to walk away from it?
Guardian, Mass, Standard to name a few have good products.
You would need to look to see what the definition of disability is based on his occupation.
Also how old is the policy?
Keep in mind that NWL DI quotes use some voodoo magic (typically, at least the ones I've seen) where they use a graded policy and use dividends to offset the cost.
I agree with the others that you need to ask a lot more questions before making any recommendations.
I agree with the others that you need to ask a lot more questions before making any recommendations.
Lloyds of Lubbock
Guru
- 714
Dividends on a Di policy always seemed strange to me.
They do not share in the divisible surplus of the company so what generates the dividend?
Claims paid lower than expected?
That does not entice me to buy.
They do not share in the divisible surplus of the company so what generates the dividend?
Claims paid lower than expected?
That does not entice me to buy.
Mass pays them too but you have 5 years before you can participate and it reduces your cost by about 10%.
I never really understood how that works either.
Probably has to do with the recapture floor something something...
- 4,570
Isn't it because they are a mutual company? Even NWM term life receive dividends. Guessing because as a policyholder of any type, you share in the profit of the overall company
Lloyds of Lubbock
Guru
- 714
Not every policy from a mutual carrier pays dividends.
If you look at term policy from a NY Life or Guardian and Penn(?) it says on the last page of the policy, the policy is eligible for dividends but none are expected to be paid.
If I buy a DI policy I want a company that pays claims out, not trying to save on claims to pay a dividend.
If you look at term policy from a NY Life or Guardian and Penn(?) it says on the last page of the policy, the policy is eligible for dividends but none are expected to be paid.
If I buy a DI policy I want a company that pays claims out, not trying to save on claims to pay a dividend.
