Can someone please explain how Protective's Custom Choice UL would work for someone in their 60's?

[LifeInsurancePro]

Confused by the product itself, but how would exchanging it before age 70 for a permanent policy would work? Confused by the "Choice" aspect of it if someone would want say a 20 year benefit period and their 63 and would need to decide on the UL aspect of it in their 7th year. Lost!

 

[Allen Trent]

Confused by the product itself, but how would exchanging it before age 70 for a permanent policy would work? Confused by the "Choice" aspect of it if someone would want say a 20 year benefit period and their 63 and would need to decide on the UL aspect of it in their 7th year. Lost!

Isn't the product mostly a level term you pick at issue for 10/20/30 years at a level premium. At end of the level period it can continue for the same premium but a much lower face amount

 

[LifeInsurancePro]

Isn't the product mostly a level term you pick at issue for 10/20/30 years at a level premium. At end of the level period it can continue for the same premium but a much lower face amount

But doesn't that option go away at the age of 70? (Client is 63)

 

[Allen Trent]

But doesn't that option go away at the age of 70? (Client is 63)

I am not sure, I dont have the product info to review, but I dont believe that is the case.

You might be confusing the separate conversion rider that might end at age 70 that allows them to convert this level term to a permanent policy at the latest of age 70. the conversion would allow the person to convert the entire level term face to permanent at their current age rather than going with the default in the plan that would drop the face at the end of the level term period

Whereas, if the 63 year old bought the version with level premiums for 20 years, the face would stay level until age 83 & then from 83 forward the face would drop for whatever the level premium that had been getting paid would provide going forward

Again, that is just a hunch on my part. have not seen the policy nor sell it. Maybe someone else on here does or knows more

 

[Tahoe Ray]

But doesn't that option go away at the age of 70? (Client is 63)

No. It works as Allan said.

 

[WinoBlues]

I love that product. Even though it would a few dollars more than an end at age 83 plan. It comes down to value.

 

[WinoBlues]

@LifeInsurancePro

This may help

Custom Choice

fist year = $203mo
See year 21 (age 84) - Premium remains the same DB decreases to about $59,xxx, Age 89 it is $29,xxx still $203mo

As a comparison

Protective 20 yr level term

first year$180.mo
yr 21 (84) - $690.mo
Age 89 - $7,568. per month.

Just a $20. difference.
insurance on the insurance.