Guaranteed Universal Life - how guaranteed is it?

[shonceman]

I'll probably post this question in the life insurance thread, too. What I'm really after is: What will nullify the guaranteed coverage length. I've got a prospect who's talking to his Allstate agent before he commits to me. Says she's offering a whole life to age 101. That sounds like UL to me, but I could be wrong. If it's Whole Life, she's beating my quote by about 25%. I could give him a lower quote, but he's got some issues that lead me to go with simplified underwriting.

 

[VolAgent]

You'd have to read the clause to see. Some remove the guarantee if the policy goes into grace period or has to be reinstated, some will allow it to be restored. It really just depends on what it says.

 

[billyb]

Most GUL products allow you to pick the guarantee. I have sold policies guaranteed to age 90 and some guaranteed to age 121. 121 is the age most carriers consider lifetime. You have to get an illustration signed that reflects what is chosen.

 

[shonceman]

Thanks. He says he called the agent, who told him it's Whole Life. It's possible, but because she used the verbiage "to 101" I thought it sounded like UL. Plus the fact that if he told her about the same issues he told me, I can't believe she quoted him accurately. If it's Whole Life, then she's quoting standard or even preferred when he should be about Table 6. But I suggested he get an illustration or proposal from her and text a picture of it, which he said he would.

 

[shonceman]

heres a link to check out https://www.accessallstate.com/Anon/PDF/Products/common/ALR1312.pdf

Thanks for that. He emailed the proposal to me, and it was for the Whole Life Advantage. However, she rated him as Standard Select.

The reason I didn't go with a fully underwritten plan for him was due to a felony conviction for drug possession (crack) in 2006. Also treated for drug abuse subsequent to that, but has been clean for 10 years. Do you think she rated him correctly for this product?

I told him he should go ahead and apply, but if it came back with a higher rate, then he should call me back.

 

[fed up]

She might have run it past an underwriter already and been given an okay. A felony conviction more than 5 years prior was looked at differently by an underwriter than a felony conviction by a client which was only 2 years past served time.

 

[rousemark]

Thanks. He says he called the agent, who told him it's Whole Life. It's possible, but because she used the verbiage "to 101" I thought it sounded like UL. Plus the fact that if he told her about the same issues he told me, I can't believe she quoted him accurately. If it's Whole Life, then she's quoting standard or even preferred when he should be about Table 6. But I suggested he get an illustration or proposal from her and text a picture of it, which he said he would.

Perhaps, They meant WL with premiums paid to 101..

 

[rousemark]

Thanks for that. He emailed the proposal to me, and it was for the Whole Life Advantage. However, she rated him as Standard Select.

The reason I didn't go with a fully underwritten plan for him was due to a felony conviction for drug possession (crack) in 2006. Also treated for drug abuse subsequent to that, but has been clean for 10 years. Do you think she rated him correctly for this product?

I told him he should go ahead and apply, but if it came back with a higher rate, then he should call me back.

Felony drug case 12 years ago should not be a knock out. It would be based on the length of time they have been free of the system (probation, etc.)

 

[shonceman]

Perhaps, They meant WL with premiums paid to 101..

Yes, that's exactly what it is. I don't learn something new everyday like I used too. But I still learn something new every now and then!

 

[shonceman]

Felony drug case 12 years ago should not be a knock out. It would be based on the length of time they have been free of the system (probation, etc.)

I wasn't expecting it to be a knockout with everybody. But on a fully underwritten product, I would expect a rating. I have to confess, though, that I don't get more than a half dozen prospects in a year for a fully underwritten product anyway. This is my first case since leaving my captive position at AGLA that had both criminal and substance abuse history.

So I'll defer to the other agent's experience and competitive advantage if she can get it issued without a rating. I may also take back that stuff I said the other day about my IMO's being helpful on odd cases like this one! They were all pointing me to simplified issue.

Well, you can't win 'em all. But I hate losing this one!