FE Insurance

[justing]

I have a guy who has a 10 yr old 10K WL policy, but could not find it when I was in the house. I am going to look into taking the cash value and trying to find another policy to roll it into and increase th DB but keep the premium the same.

He claims to be in great health.

What companies are best for this kind of situation.

 

[Newby]

You realize there is a real good chance you won't be able to beat his current rate. He is 10 years older and the cash value won't be much. You also need to make sure you aren't replacing a 10 pay or 20 pay with a lifetime pay policy.
If you are fairly new I would try to sell additional coverage rather than replace unless you are real sure you are making him better off.
The answer to your question is any company that will offer him immeadiete coverage at a lower rate. RNA, Oxford, Settlers, Forresters, Monumental, etc.

 

[Focus LTC]

Most companies don't accept 1035 exchanges on their non med "pop corn" FE WL policies. In fact I can't think of a single one.

 

[Newby]

Most companies don't accept 1035 exchanges on their non med "pop corn" FE WL policies. In fact I can't think of a single one.

What's the advantage of 1035ing it unless they are getting back more than they paid in premiums which isn't going to happen with a 10 year old FE policy?

 

[Focus LTC]

Your comment appears to be spiteful and snippy. I hope that is not the case. The original poster's question was:

What companies are best for this kind of situation.

He was looking to "roll over" cash from one popcorn WL FE policy into another and wanted to know of the best companies for this. I answered his question. You did not.

What's the point of being confrontational in an insurance forum? Let's be helpful. It's the American way.

 

[Newby]

I didn't realize how I was comming across. Here are the points I was making. I believe them to be helpful.
1. A new agent who is unsure of himself should avoid replacing policies without assistance from someone who is more familiar with all the data. You don't want to replace a policy if it leaves the client is a worse or equal condition.
2. The agent should explore the idea of additional coverage rather than just replacement.
3. A 1035 exchange is not necessary if a surrender is not taxed. If the premiums paid are more than the cash value there will not be taxes owed. This is usually the case with FE policies.
4. Of the FE companies I carry I believe most of them allow 1035s. I know this to be true with Forethought, Settlers, Monumental, Cincinnati Equitable and National Guardian.

 

[jemelton]

If he's healthy, why not roll the cash into a guaranteed UL...the cost difference if he is in exceptional health will be very minimal. The only thing that the client will need to know would be that he will not have access to cash value in the policy (since he's getting more ins there will be very little cash value with a guaranteed UL)

 

[justing]

I certainly never said anything about him having a "pop corn" non med or putting him in one, all I said is 10K WL and he said he is in good health, but that is good to know.

I plan on exploring UL, but this guy is dead set on WL, so I was going to look there first just to see if there were any good options available.

 

[360]

Take a look at RNA's Royal Prime product.

 

[jemelton]

He's probably dead set on "whole life" because he wants it to last "forever." Explain to him that if he dies with a WL policy that he does not get the cash value that is in the policy, just the death benefit. Show him that the guaranteed UL is guaranteed for life (age 120) and that should change his tune.....