not very close in premium according to what the OP posted..
Help with quote for 63 male Whole Life
- Thread starter shooter
- Start date
- 10,806
Maybe not "very close" but not too far considering you have $55k in guaranteed CV with the $314/m option and $0 in guaranteed CV with GUL.
It could be argued that with the WL you only have $45K death benefit (net) but with the GUL you still have $100K DB (net) and paid much less.
- 10,806
You can argue it all you want, but you will be incorrect.
You die while owning the WL, you get $100k.
The Net Amount at Risk is the same with both policies. It is just divided up differently with each one.
I sell both. Not knocking either one. But for a substantial return of premium available if they want it, many consumers will opt for the WL. That is why it makes sense to show both and let the client decide what they like best.
- 4,998
So true. The GUL & no lapse IUL, etc should really be reserved for the more stable client that has shown willpower, great handling of money. WL has legally required safeguards built in that bail out a lot of clients that have life happen to them 20,30 or 40 years down the road like health issues,.bad spending, kids & grandkids that use them as a private bank, etc. WL has not only the required CV for those emergencies, but also APL & ability to elect reduced paid up.
GUL & no lapse products don't have alot of safety nets available for when people run into bad times or make bad financial decisions in other areas of their life. The products are priced knowing that most will make bad decisions over that 30-60 year timeframe with no claim being paid. Whereas WL is priced by law to build CV to equal face.
I like & own both, I just don't trust as many consumers with the flexibility of UL products
selfgen
Guru
Can you explain what you're talking about here? 95% of the time I'm doing health insurance so I'm using this forum trying to learn about writing life.
- 10,806
Most GUL policies can be "solved" to pay premiums for a shorter amount of time, and still retain the Guaranteed element. So instead of paying premiums to age 121, you could pay premiums for 20 years or 10 years or 5 years etc. and still have the DB guaranteed. Premium will be higher the shorter the time period is. You can even solve to do a single pay on most GUL policies.
I say "most" because there are a few out there that dont allow this. Or they dont allow a single pay or payment period shorter than 7 or 10 years. But most of the competitive GUL players allow you to "solve" within the illustration software for a shorter payment period while retaining the guaranteed death benefit.
- 4,998
Think of how a mortgage works. You borrow $200k from a bank & you can pay ahead to have it paid off in 5 years, 10, 14.5 yrs or age 60 when you retire.
Buying no lapse guaranteed UL/IUL can be the same. You borrow a death benefit from the insurance carrier day one of $200k at say age 50. They may require you to pay $2k per year from now until age 121 & as long as you pay $2k, it is guaranteed to pay your heirs $200k even if there is 0 or negative cash value. But if you don't want to have to make those payments forever & want it guaranteed after 30 years, it might require you to pay 3500 yr to have it fully guaranteed in 30 years, but you will have only paid in $105k by paying in quicker over 30 years compared to paying slower over 72 years for total cost of $142k.
Similar to mortgage, quicker you pay the bank for the borrowed cash, less you pay in total by paying it off sooner
Lloyds of Lubbock
Guru
- 753
Still good after all these years.
The Laughing Banker
--original story by Benjamin N. (Woody) Woodson, CLU, Life Trustee of LUTC and re-printed from Managers Magazine.
I entered the manager's office of my neighborhood bank and made this proposal:
"Mr. Bank Manager, there is a piece of vacant land in my area that I'm interested in buying. It is well-suited, the town is developing in its direction, and I am virtually certain that its value will rise. I've thought the matter out carefully from every angle and I've come to the conclusion that the land would be a very good buy." "There are several reasons why I prefer the prospective capital gains of a vacant lot to the current cash income I could have by buying another type of property, such as an apartment building." "For example, I don't particularly need a supplementary income at the moment, because these are the best earning years of my life." "Also, the extra income that I would receive from income-producing property would, in any case, be cut considerably by the income tax I would have to pay." "For these reasons, I think that the purchase of this land is a good-buy – provided I can be sure that its value will increase over the years, enough to represent a good return on the investment I make." "Since I don't want to lose money on this enterprise, I'd like to make an agreement with you and your bank that will protect me financially and give me security and peace of mind." "The purchase price of the land is $28,000. If I buy it at that price, I want to have a written guarantee from your bank to protect me on several points." Specifically: "I want your guarantee that the property will be worth $100,000 in 35 years (at which time I'll be age 65) and that the bank will buy it from me at that price." "I'm prepared to accept a reasonable shrinkage in its immediate value if I decide to sell within the next few years; such shrinkage is to be expected in the case of a long-term investment such as this." "However, I want – this early-sale clause notwithstanding – the guarantee that, each year, the land will have a market value proportionate to the $100,000 it will be worth in 35 years, and that the bank will buy it back from me at that value at any time I wish." "In the event of my death, whenever this occurs (in three days, three months, or three years), I want your guarantee that the bank will pay to my heirs the full $100,000 that the land will be worth in 35 years." "I want your bank (in the event of my death) to absorb any capital gains tax that would be chargeable, so that my heirs will receive the $100,000 without paying any income tax." "I want the bank to consent to be trustee and to administer (without charge) the proceeds from the sale of this land, either for my heirs in the event of my death or for myself if I so desire, and I want the bank to guarantee the principal and interest." "I want the bank to absorb maintenance costs and any taxes that could be levied against the land during the years I am the owner." "I want the bank to give me the privilege of buying this lot in installments over a period of 20 years, if I should decide to do so, rather than paying the $28,000 in cash. In this way, I would make 20 level annual payments at about 6 percent interest, so that each annual payment would be about $2,200." "Finally, in the event of my death before the end of the 20-year period, I want the bank to cancel the remaining payments and deliver the $100,000 ultimate value guaranteed by the bank to my heirs." "Mr. Manager, if the bank accepts these conditions, I will buy that piece of land. What do you think?" The bank manager laughed. Then he told me that he didn't think a financial institution could comply with my wishes under such conditions. Yet, as you probably guessed by now, all I did was describe a $100,000 permanent life insurance policy. It is a policy that can be purchased with a single premium or over a 20 year period. Life insurance is one of the best contracts ever conceived. It is what you offer your clients.
The Laughing Banker
--original story by Benjamin N. (Woody) Woodson, CLU, Life Trustee of LUTC and re-printed from Managers Magazine.
I entered the manager's office of my neighborhood bank and made this proposal:
"Mr. Bank Manager, there is a piece of vacant land in my area that I'm interested in buying. It is well-suited, the town is developing in its direction, and I am virtually certain that its value will rise. I've thought the matter out carefully from every angle and I've come to the conclusion that the land would be a very good buy." "There are several reasons why I prefer the prospective capital gains of a vacant lot to the current cash income I could have by buying another type of property, such as an apartment building." "For example, I don't particularly need a supplementary income at the moment, because these are the best earning years of my life." "Also, the extra income that I would receive from income-producing property would, in any case, be cut considerably by the income tax I would have to pay." "For these reasons, I think that the purchase of this land is a good-buy – provided I can be sure that its value will increase over the years, enough to represent a good return on the investment I make." "Since I don't want to lose money on this enterprise, I'd like to make an agreement with you and your bank that will protect me financially and give me security and peace of mind." "The purchase price of the land is $28,000. If I buy it at that price, I want to have a written guarantee from your bank to protect me on several points." Specifically: "I want your guarantee that the property will be worth $100,000 in 35 years (at which time I'll be age 65) and that the bank will buy it from me at that price." "I'm prepared to accept a reasonable shrinkage in its immediate value if I decide to sell within the next few years; such shrinkage is to be expected in the case of a long-term investment such as this." "However, I want – this early-sale clause notwithstanding – the guarantee that, each year, the land will have a market value proportionate to the $100,000 it will be worth in 35 years, and that the bank will buy it back from me at that value at any time I wish." "In the event of my death, whenever this occurs (in three days, three months, or three years), I want your guarantee that the bank will pay to my heirs the full $100,000 that the land will be worth in 35 years." "I want your bank (in the event of my death) to absorb any capital gains tax that would be chargeable, so that my heirs will receive the $100,000 without paying any income tax." "I want the bank to consent to be trustee and to administer (without charge) the proceeds from the sale of this land, either for my heirs in the event of my death or for myself if I so desire, and I want the bank to guarantee the principal and interest." "I want the bank to absorb maintenance costs and any taxes that could be levied against the land during the years I am the owner." "I want the bank to give me the privilege of buying this lot in installments over a period of 20 years, if I should decide to do so, rather than paying the $28,000 in cash. In this way, I would make 20 level annual payments at about 6 percent interest, so that each annual payment would be about $2,200." "Finally, in the event of my death before the end of the 20-year period, I want the bank to cancel the remaining payments and deliver the $100,000 ultimate value guaranteed by the bank to my heirs." "Mr. Manager, if the bank accepts these conditions, I will buy that piece of land. What do you think?" The bank manager laughed. Then he told me that he didn't think a financial institution could comply with my wishes under such conditions. Yet, as you probably guessed by now, all I did was describe a $100,000 permanent life insurance policy. It is a policy that can be purchased with a single premium or over a 20 year period. Life insurance is one of the best contracts ever conceived. It is what you offer your clients.
selfgen
Guru
can you explain what you mean by this?
I have a client around the same age and he's looking for the same type of coverage.
