Big Whole Life Policy

Discussion in 'Life Insurance Forum' started by EasternShore, Sep 30, 2015.

  1. EasternShore
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    I've got a well-to-do 63 y.o. NT client who's interested in buying 500K of WL. Any suggestions? Thanks guys!
     
  2. scagnt83
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    You really need to clarify the client's goals with this. A traditional Participating WL policy will have a higher premium than a non-par WL policy. But the Par WL will have an increasing DB and the non-par will be level.

    If the client wants/needs an increasing DB then go with WL. If they want/need a level DB, then go with GUL. If they want the cash value then go with WL or IUL.

    For participating WL look at Mass, Guardian, Penn, or Ohio National.
    For GUL it will really depend on his health. NA if he is in excellent health. LFG or Protective if not.
     
  3. EasternShore
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  4. WinoBlues
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    Also many people that ask for whole life tend to mean Level Guaranteed Premiums and Guaranteed Death Benefit. Some will include cash values in their wants.

    Guaranteed is different than promise to try.

    His health, ability and desire to pay are going to be a factor on if you have a prospect or not. If you feel he will pay the premiums I would start by asking some basic health questions before I cornered myself with any product recommendations.
     
  5. EasternShore
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    The client is in good health and will be able to pay the premiums. Their main goal is to stretch inheritance money further than a simple savings account or CD would go. Thanks again!
     
  6. WinoBlues
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    Then as scagent suggested I would look at Par Whole Life or GUL. Par Whole _may_ have a higher DB long term. GUL will have a higher DB and lower premium today. If they have CD or savings they will dump in then GUL. May be able to short pay it.
     
  7. Todd King
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    If it is to stretch inheritance, would an annuity be a better option? Maybe it is, maybe it isn't. Just an observation.
     
  8. EasternShore
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    For GUL with a standard health rating, which carrier would be best? Thanks again!
     
  9. Tahoe Ray
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    You normally don't want to die with an annuity...no step up in basis, limited distribution options to a non spouse (depending on date of death and when you take w/ds), distributions are likely taxable, etc.

    The IRR in a GUL on a healthy individual in their 60s will likely outpace the performance of any fixed (traditional or indexed) investment, even slightly past life expectancy.

    Life insurance creates the sum, annuities distribute it (although using the annuity to distribute the inheritance can sometimes work very well.)
     
  10. GreenSky
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    If it was my case I would immediately call in an expert so I don't 1) screw my client and 2) screw myself.

    Rick
     
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