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If they bought a 500k term policy, how would the conversion work in 20 years?
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They work the same way but the product they can convert to depends on the carrier.If they bought a 500k term policy, how would the conversion work in 20 years?
That's why I would definitely opt for a large term plan. A $500,000 20 year term (preferred) is about $30 per month. They can afford that. Can they afford $2,000 for a UL?
Rick
Sorry - meant per YEAR!Rick -
It's time to find a different company to write UL's with. If the premium is $30 a month for term, I doubt it would be $2000 a month for a UL, unless you are overfunding it (significantly).
Dan
I just had an idea
They could each purchase a $300k term and then convert it when the term runs out if they want. Would a 300k term convert to a 20k paid up policy?
The easy answer is to ask the carrier (or GA) you might be using to illustrate this for you.Can someone explain the conversion?
Let's say that after 10 years into a $300K term, a client (now age 40) wants to convert $100k to WL/UL (depending on company).
Does he then pay the difference in premiums going forward for $100k WL and $200k term?
If I want to illustrate this for a client, do I keep him at the same rating he initially had and just change the age?
If not, can someone please define how I do this, or how to estimate the additional cost? Thanks