Best LI Company for PUA to Premium Ratio

[DWH]

Hi Everyone,

I'm new to insurance and looking to get an appointment with a life insurance company, or use a cluster if necessary. Would some of you more experienced guys be able to tell me which life insurance companies allow the most generous PUA to premium ratios? I would prefer mutuals, specifically non-direct recognition if possible.

Thanks in advance!

 

[Justin Bilyj]

Mass Mutual or Lafayette.

 

[scagnt83]

Penn has the largest ratio of PUA to Base Premium. Followed by I believe Mass.

 

[Larry Tew]

Hi Everyone,

I'm new to insurance and looking to get an appointment with a life insurance company, or use a cluster if necessary. Would some of you more experienced guys be able to tell me which life insurance companies allow the most generous PUA to premium ratios? I would prefer mutuals, specifically non-direct recognition if possible.

Thanks in advance!

If you're new to insurance, it's interesting that you even know about such things. I assume you know as a new agent that what you're asking about is the least of your priorities, but anyway...

I can blend an Ohio National Prestige Xcel Plus down to 28% base, 72% API (PUA) payable for 25 years level. Do you need it thinner than that?

Bear in mind that thinner isn't always better. The smaller your base policy, the smaller the guaranteed cash value. Thin is best early, but not necessarily better later.

 

[BNTRS]

Bear in mind that thinner isn't always better. The smaller your base policy, the smaller the guaranteed cash value. Thin is best early, but not necessarily better later.

Paid up additions are immediate cash less PUA load that receive guaranteed interest and dividends. If I have a choice between $10,000 all base premium and $5,000 base premium and $5,000 PUA, I'll have close to $5,000 from day one in guaranteed cash where I could have $0 in the all base situation.

The expense to a PUA is far smaller than the expense associated with base premium so mathematically it would follow that PUA's would accomplish higher guaranteed cash value. No?

I could see how base guaranteed cash value would be lower, but that doesn't really matter. In all cases I've designed, heavy use of PUA's accomplishes better guaranteed cash value.

In fact this is a stumbling point we've had to point out to help the case for NML agents from time to time. They use ACL with a tiny whole life portion and it makes the guaranteed cash look very small, but that's because the ledger only reports the base guaranteed cash value which means they are only reporting guaranteed cash on that tiny whole life portion.

The logical counter argument to this would be that a large enough face amount might overtake the guarantee on PUA's due to the endowment process over time (would be very far out into the future). But I'm relatively convinced that if you keep the ratio highly favoring PUA's relative to incoming premium you'll still accomplish more guaranteed money if you favor the PUA rich design.

I could be wrong.

 

[DWH]

Great, thanks for the info everyone!