Best Participating Whole Life Insurance that Has Death Benefit Plus Cash Value Option

[mynarky]

I just got done reading "The Feldman Method" and I'm fired up to start selling whole life that has the death benefit option to get both the cash value and death benefit back upon death. I realize that this can largely be accomplished through paid up additions, but I'd like a cleaner way to present this. I checked Winflex and between Metlife and MassMutual I didn't find what I need.

Feldman would say "we will open two bank accounts, one with the $1,000,000 your family will get when you die and the other you put $500 a month in. When you die, your family will get both." I'm paraphrasing, but I like this concept and feel like this could be sold to young affluent folk.

Any good suggestions?

 

[Newby]

I just got done reading "The Feldman Method" and I'm fired up to start selling whole life that has the death benefit option to get both the cash value and death benefit back upon death. I realize that this can largely be accomplished through paid up additions, but I'd like a cleaner way to present this. I checked Winflex and between Metlife and MassMutual I didn't find what I need.

Feldman would say "we will open two bank accounts, one with the $1,000,000 your family will get when you die and the other you put $500 a month in. When you die, your family will get both." I'm paraphrasing, but I like this concept and feel like this could be sold to young affluent folk.

Any good suggestions?

No company pays any cash value as a death benefit on a whole life policy.

They can pay death benefit plus accumulated dividends or paid up additions.

But if you ever present any policy as paying the cash value in addition to the death benefit upon death you will lose all your lawsuits and e& o claims. That's a huge misrepresentation.

 

[LGilmore]

Actually in most cases the additional death benefit the PUA buy are greater than the cash values. At least on my WL policies if I took the base death benefit and the cash value, I would receive less than the base death benefit (what I started with) AND the additional death benefit my PUAs buy.

 

[DHK]

As far as I know, there are no whole life policies where you can do this.

You can easily do this with UL or IUL using the option 2 death benefit. Make sure the policy is well funded and help the client manage the policy over time.

 

[mynarky]

As far as I know, there are no whole life policies where you can do this.

You can easily do this with UL or IUL using the option 2 death benefit. Make sure the policy is well funded and help the client manage the policy over time.

Solid advice. Yeah it looks like the policy Ben Feldman was referring to was with NY Life and this was something like 30-40 years ago.

 

[Golfnut2112]

He was using the dividend option buying one year term with the balance to PUA's. I'm not sure what companies offer that option maybe MTL

 

[Larry Tew]

Back to the OP, I wouldn't explain it the way you suggest, even if Ben said it that way. I use the term "net death benefit", meaning the total DB (base plus paid up adds) MINUS total cash value). That number usually grows early in the contract and reduces later as guaranteed CV grows to meet the guaranteed DB.

For example, at issue the face is 235k, CV is zero. Net DB is 235k.

End of year 10: Total DB is 346k, CV is 66k, Net DB is 280k. This is more than the original face, so in this case the insured would receive MORE than the original DB plus CV.

However, if the plan I'm illustrating has a low dividend scale and the person is older, the Net DB could go the other way, meaning you really couldn't say to the insured that he gets both the DB and the CV.

Either way, I think a better way to say it is that your DB grows over time based on dividends, which also adds to your base cash value.

 

[BNTRS]

Umm you can effectively do this with any whole life policy. All you're doing is adding the PUA rider to a policy. So in the example from Ben:

Client buys a $1,000,000 whole life policy and adds a $6,000/year PUA rider to it. The PUA's will buy more in death benefit than the cash value that will be made available in them so death benefit comes out to something higher than the original $1,000,000 and the outlay for the PUA's.

When designed like this, it would be the same case for pretty much every participating whole life carrier that has a PUA rider.

 

[SouthernComfort]

I think Ben was taking the premium for the original death benefit in account 1 and the 500 as an API rider and havining dividends purchase paid up additions. I imagine he showed the concept on a yellow pad with the gerated values from the ledger. And it still works today.

 

[Larry Tew]

I didn't use a PUA rider in my example. Prestige Max. If I had used a Prestige Value III which has pretty good guaranteed CV but a thin dividend, the GCV would close the gap on the DB and the "Net DB" would decrease over time.

Obviously it depends on what you're illustrating. My point was that since "words mean things", I would not say it like Ben said it. Not only that, but when Ben said it, I'm not even sure that NYL or any company had a PUA rider yet. My illustration was simply using Paid Up Additions as the dividend option.