Dividend-paying WL

Discussion in 'Life Insurance Forum' started by AllGold, May 16, 2012.

  1. AllGold
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    AllGold Guru

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    Who has it?

    (Ok, you'll probably be able to guess this but I'll go ahead and say it anyway: I'm a bit of a noob when it comes to life insurance beyond FE.)

    Other than FE, I have not been able to find any quote engines for WL. Tons of them for term and UL but nothing for WL.

    Here's the background on why I'm asking--and why I'm specifically asking about dividend-paying (is that the same as Par?). I have a client, a 49yo female NT, who would like 50K-100K of whole life. She insists she is not interested in any portion of that being term. So we're looking at permanent insurance, WL or UL. Obviously, UL is cheaper but she really likes the idea of CV and PUA.

    I found a great rate for WL from Royal Neighbors of America. They're killing everyone I could find--although since I can't find a WL quote engine I'm sure I'm missing a lot. Then I discovered why their rates are so good: it's non-dividend-paying. The company tells me no dividends will ever be paid. They used to have dividend-paying WL products (I know because I have one myself). Nothing but face-value DB and guaranteed CV on the illustrations.

    So those lower rates aren't looking so great now. Even Foresters shows increasing DB (of course not guaranteed) which in the long run would probably be better than RNA.

    But even being the noob I am, I'm pretty sure I don't want to be looking at final expense companies for this case. What company or companies should I be looking at?

    Thanks.
     
  2. VolAgent
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    I don't think you'll find a multi company WL quote engine.

    I recommend looking into Ohio National or Guardian. Also some like Lafayette Life and Penn Mutual among others.
     
  3. LGilmore
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    LGilmore Guru

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    As a noob who is probably independent, look at Guardian and Ohio National. I think they are the two biggies that are dividend paying mutuals who work with independents.

    I use Guardian.
     
  4. STIBROKER
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    STIBROKER The Guy that GREENSKY can't not put on ignore. Moderator

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    The Guardian....................................
     
    Last edited: May 17, 2012
  5. carol369
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    You might want to check with Country Life's UL. Don't know how their rates are, but they're pushing here in Michigan. Just got an email from them today about it.
     
  6. Newby
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    I like LaFayette and they have software that is easy to follow.

    And no "participating" does NOT mean pays dividends. As you found out RNA policies are participating but they do not pay dividends.
     
  7. 0b1kanobee
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    0b1kanobee Guru

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    What do they pay........interest I assume? (probably a dumb question but I just want to be 100% sure)
     
  8. VolAgent
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    Nothing.

    It is plain ol' vanilla whole life. It is participating so it could share in dividends, if they were declared. So just guaranteed interest on the cash value to make it endow at maturity.
     
  9. BNTRS
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    BNTRS Guru

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    That's incorrect, participating would be reference to participates in divisible surplus, which would mean could earn dividends. Non-par WL simply means that it follows the guaranteed cash on a WL policy. All WL policies have cash, as they are all endowment contracts that endow at a certain age, requiring some form of cash value accumulation. Dividends would take the policy beyond these guarantees.


    As for the original questions posed by AllGold:

    If you're looking for lower required premium coverage (i.e. cash value isn't really a huge deal, but you still want dividends and cash growth) Ohio National's Prestige Value II, Guardian's L121, and Metlife's Promise Whole Life are all paid up at age 121 products, meaning they'll have some of the lowest required premiums out there.

    If Dividend performance is important, then Ohio National's Prestige Xcel, Penn Mutual's Flexible Whole Life 100, and Massmutuals Legacy 100 would top the list.

    Again, the focus is more death benefit in both cases, if you really want to talk about cash, there's a completely different way to look at this.
     
  10. Newby
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    What I am stating is "participating" does not mean it pays dividends.

    It does mean it could pay a dividend. But many participating policies state that they do not ever expect to pay a dividend. If if they state that, you can be certain they never will.
     
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