Dave Ramsey hates whole life insurance ...(does he know Anything about Insurance) ?

[LostDollar]

You may find this PDF helpful and remind you of your pre-licening training on how life insurance works. It's "A Lesson in Life Insurance" from the VSA.

I have been told I may receive a proposal for a ($10K) 10 pay GUL product as a solution to a concern I posed to an insurance agent.

How does GUL fit into the spectrum of products presented in the brochure?

Thank you.

 

[Allen Trent]

I have been told I may receive a proposal for a ($10K) 10 pay GUL product as a solution to a concern I posed to an insurance agent.

How does GUL fit into the spectrum of products presented in the brochure?

Thank you.

Basically, GUL or no lapse IUL are essentially forever term. Just make sure the no lapse guarantee goes forever & that you never miss a premium payment that would make you non compliant with the no lapse guarantee. They can be great policies, especially if you have them solve it so that you pay more than minimum so that you could be forever compliant with no lapse premium faster. IE, rather than pay $500 minimum to age 120, pay $700 so that by age 85 you have satisfied all premiums forever. It doesn't make the agent any more commission, but it can be a life saver if someone 20 years from now missed premiums while in Florida for winter,in the hospital or nursing home & lost their policy for not covering no lapse minimum premium. Seen several horror stories over the years on cases where people were paying minimum & missed a premium.

Basically, build a safety net. Worst case scenario is a person dies too soon & slightly overpaid had they paid absolute minimum needed. Error on safe side in design of your no lapse premium.

PS. Most carriers require much higher face amounts than 10k , so my guess is the cost for $10k face could be more costly relatively speaking per thousand than most carriers that might start at 50k face amount

 

[TheBatman]

I'm really disappointed that a thread that's 5 pages long, that I thought would be a 'shade throwing' roast of Dave Ramsey, petered out in 2-3 posts.

 

[LostDollar]

Basically, GUL or no lapse IUL are essentially forever term. Just make sure the no lapse guarantee goes forever & that you never miss a premium payment that would make you non compliant with the no lapse guarantee. They can be great policies, especially if you have them solve it so that you pay more than minimum so that you could be forever compliant with no lapse premium faster. IE, rather than pay $500 minimum to age 120, pay $700 so that by age 85 you have satisfied all premiums forever. It doesn't make the agent any more commission, but it can be a life saver if someone 20 years from now missed premiums while in Florida for winter,in the hospital or nursing home & lost their policy for not covering no lapse minimum premium. Seen several horror stories over the years on cases where people were paying minimum & missed a premium.

Basically, build a safety net. Worst case scenario is a person dies too soon & slightly overpaid had they paid absolute minimum needed. Error on safe side in design of your no lapse premium.

PS. Most carriers require much higher face amounts than 10k , so my guess is the cost for $10k face could be more costly relatively speaking per thousand than most carriers that might start at 50k face amount

Would there be significant premium differences between ages 79 and 80?

The specific purpose here is a tax free transfer of money upon my death using either a Roth Annuity or a life insurance product of some kind.

I had a Baltimore Life single premium policy issued for this awhile back, but I returned it because it matured at 100 instead of 120.

I had been figuring that I would need to use an annuity now for that project, but with a birthday approaching, it occurred to me to ask an agent if there was some type of single pay or 10 pay life coverage I could apply for that would meet that purpose-and get an application processed before my birthday.

He has taken so long to get back that I dont think I will be able to get the lower age rate and I'm not sure whether he will have an option at all. I'll see.

I am very uncomfortable with the idea you presented of buying insurance which could disappear. I am more used to the idea of thinking about permanent insurance.

 

[Lloyds of Lubbock]

Most companies write age nearest, so it may not matter.
You can call the companies client service dept and get that answer.
You also should look at the maturity provision.
They are not all the same.
For example one company I know says, when the policy matures, the db is held at the guaranteed rate and paid out upon death.

 

[LostDollar]

Most companies write age nearest, so it may not matter.
You can call the companies client service dept and get that answer.
You also should look at the maturity provision.
They are not all the same.
For example one company I know says, when the policy matures, the db is held at the guaranteed rate and paid out upon death.

Thanks for taking the time to comment.

Nuances that it is useful to be aware of.

 

[Allen Trent]

Would there be significant premium differences between ages 79 and 80?

The specific purpose here is a tax free transfer of money upon my death using either a Roth Annuity or a life insurance product of some kind.

I had a Baltimore Life single premium policy issued for this awhile back, but I returned it because it matured at 100 instead of 120.

I had been figuring that I would need to use an annuity now for that project, but with a birthday approaching, it occurred to me to ask an agent if there was some type of single pay or 10 pay life coverage I could apply for that would meet that purpose-and get an application processed before my birthday.

He has taken so long to get back that I dont think I will be able to get the lower age rate and I'm not sure whether he will have an option at all. I'll see.

I am very uncomfortable with the idea you presented of buying insurance which could disappear. I am more used to the idea of thinking about permanent insurance.

with UL products, there isnt necessarily a change in rate for age because UL premiums are not like Term & WL premiums that are set in stone. UL products all have internal costs for the insurance component inside the policy & those rate per thousands of insurance go up annually inside the policy. So, I dont think you would see much difference in age 79 or 80 & most carriers would already consider you age 80 unless you backdated to save your half-birthday to be 79, but you would have to pay the back premiums to do so.

honestly, the biggest challenge at age 79 or 80 is getting approved at all for policies that are underwritten based on health history & exams, etc