Gerber Grow Up

[Gooner]

Currently Mass only allows 2x premium for the GIO.

You're right..of course...I was thinking about a Liberty Mutual product that I had on them originally...the Mass product outperformed it, so I switched it.

 

[scagnt83]

You're right..of course...I was thinking about a Liberty Mutual product that I had on them originally...the Mass product outperformed it, so I switched it.

I was right because I already had their illustration software up.... LOL. I would have guessed 3x. I think some other carriers allow more than 2 times DB. 9x is big, that is a nice feature. But Im sure you are right about the performance. Based on the current dividend scale the 10 pay kids policy has a 9%+ RoR at age 80... lol. Seriously though, those 10pays do look nice for kids... especially when grandparents are paying for them, they almost always buy a higher DB than the parents do. Or you get the 2 to combine premiums on a larger kid 10pay. What I do is show a higher DB and ask "do you think their parents would want to pick up the difference? We could set up 2 EFTs to pay the policy...". If it works you have 2 new people to cross-sell to.

Only thing that sucks about the 10 pay is the comp! LOL

 

[smokin goose]

Could you clarify the abbreviations?

GIO
WP
RoR

 

[GoPokes]

Could you clarify the abbreviations? GIO WP RoR

In gonna take a stab at it...

Guaranteed insurability option
Waiver of premium
Rate of Return

The first two are riders, usually

 

[scagnt83]

In gonna take a stab at it...

Guaranteed insurability option
Waiver of premium
Rate of Return

The first two are riders, usually

Yep.

GIO lets them increase coverage (with no underwriting) by 2x premium at certain benchmarks like age 18, age 25/35/etc. The points in time that you can add coverage vary by carrier. It is not limited to just once, with most carriers you can do it multiple times.

Mass does (or used to if not anymore) let the WoP be on the Owner/Payor. So on a kids policy the premiums are waived if the parent who pays becomes disabled.

That RoR is based on the current dividend scale. For most of the policy it is in the 2%-5% range. 50% reduction in dividends gives it 1%-3% for most of the policy. Obviously at the amounts in my example the DB is the main concern, not CV.