I have a database of a bunch of my older UL and VUL contracts that were sold 10+ years ago. Most of the contracts are dying out early because of lower interest rates or poor market performance. I am currently using Ohio National Life's VPRO Univ life, but I was wondering if anyone had a better option to offer my clients? Most of these policies will involve a 1035 exchange. I would really appreciate any input or advice.. Thank you
Best Cash Value Universal Life Policy?
- Thread starter haupt001
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- universal life
- 188
Literally every case would be different. Are you using them as an asset class of for death benefits? Are you tying in ABRs? I personally use AGLA for a contract with ABRs. As an asset class, I use ING and American General (Houston). For death benefit, I use GULs based upon pricing and many players come into the action at that point.
- 25,990
I do these also. I find most are done looking at anything not guaranteed. The older ones do not have that much CV left.
I tend to 1035 into GULs. Which ONL does not have any longer. The 1035 helps lower the premium or shorten the required years to pay. I give them the choice.
I am pretty sure that a few companies like Protective have a rolling target so you get paid the full target if reached over two years in the lower premium scenario.
Lee
I tend to 1035 into GULs. Which ONL does not have any longer. The 1035 helps lower the premium or shorten the required years to pay. I give them the choice.
I am pretty sure that a few companies like Protective have a rolling target so you get paid the full target if reached over two years in the lower premium scenario.
Lee
Wino, I looked at my ex-wife UL. 100K, 15 years old, Washinton, she is 62, about 10k in cash value, 85.00 a month, 4% interest growth. The insurance cost is 115, at this rate at 73, it goes bust. She is my ex but the money goes to our children. What path should i tell her to take. Feed it more money?. Of course she thought she had whole life, When i told her it was a UL. She cursed the lieing agents grave, the one who sold it to her. She has a very low opinion of insurance agents. I don't see the value in selling UL'S. Are they just smoke and mirrors?
- 25,990
Would you say she is preferred, Standard or rated?
Have her order an inforce showing the required premium to carry the policy to age 100 at the minimum interest rate.
That is where I would start the process.
V-Pro UL is designed to be a very competitive low premium to endow product. So you're definitely on the right track if you are looking for a low expense product that will leave access to the cash value on the table.
For those that are purely a death benefit play, there would be better options in the GUL world. Penn, North American, Protective, and Trans would all be great options.
Prudential's new IUL would also be a possibility for a low premium to endow scenario, their current assumption UL is supposed to accomplish this, but ONL will typically beat them on this.
Ohio National's V-Pro UL is going to be hard to beat. The only time it doesn't shine is if you are looking for EARLY cash value availability. What makes the V-Pro work so well is the very low internal costs... which are offset by higher surrender charges early.
If long-term death benefit or later income stream cash flow is your objective, it will be a good fit.
If long-term death benefit or later income stream cash flow is your objective, it will be a good fit.
Unless you are in the estate market, sell whole life with paid up additions to avoid having to 1035 your client's money to a "better UL" before the costs start eatting up the cash value. NML, NYL, Mass, Guardian, all have strong policies and will leave you with less headaches in the future. You could be helping them with long term care policies now and not replacing mistakes of the past. That is a tough conversation to have with a client as to why your recomendation did not perform as you said it would. 99% of these UL products will not perform as illustrated and when you get into IUL's they are changing the caps all the time.. If it were me.. I would stay away.
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- 8,707
Nmllaxguy said:
Not to pick a fight but show me a Whole life illustration that has performed as illustrated beyond the guaranteed columns.
