- 17,077
Yes. Prudential sold a lot of adjustable premium WL policies also. On those the rate goes up at age 65.
Globe Life
- Thread starter profithuner
- Start date
- 9,744
Years back, their most popular debit contract was a "Mod 3" - first three years at 85% of ultimate premium...
- 26,170
I believe Ohio State and Old Line Line Life(AIG) had them also. United Heritage had one that went up a bit every year for about 21 years then decreased to zero due to dividends. There were several others.
- 15,041
Hopefully one of our experts will correct me if I am wrong.
I believe the only actual requirements for a whole policy is that it have a guaranteed schedule of premiums to maturity and that the guaranteed cash value endow at maturity. Other than that, nothing is all that fixed about it.
I believe the only actual requirements for a whole policy is that it have a guaranteed schedule of premiums to maturity and that the guaranteed cash value endow at maturity. Other than that, nothing is all that fixed about it.
- 17,077
Yep! No unexpected rate changes. They all have to be exactly spelled out in the policy.
The old ones could endow at age 95 or 100. The new ones are usually 121.
- 2,452
which I assume is because of the actuarial tables that show life expectancies have increased? and obviously make it more profitable for the carriers, although not many people past 100 there are definitely more now than there used to be.
- 15,041
Yes, due to life expectancy. Everyone now has to use the CSO 2001 tables.
More profitable is debatable. I understand that premiums went down with the new tables, as the policies were spread over a longer period of time. So they are getting less premium, but they calculate a longer life expectancy which means a lower reserve.
- 159
There are still some plans that stop premiums at 100, but don't endow until 121. Many plans make people pay all the way to 121 or death. More and more people are living past 100 therefore paying too much.
- 19,666
Yes it does. The very difinition os whole life is level premiums. Anything else is not whole life. No matter what some sleazebag marketer at a given company tries to say or get away with.
What does whole life insurance mean
- 17,077
I have a friend that owns a small funeral home. So far this year he's had three funerals for people over 100-years old. And that's out of only 30- funerals.
One of them was 109 years old.
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That's not actually true. Whole life means the policy self funds at the endowment age. The premiums are guaranteed from the beginning but don't have to be level. They can be designed to reduce, end, or increase. There just can't be any random changes. It has to be designed from the beginning of the policy.
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