How to Max Out an Existing WL Policy?

Jun 13, 2016

  1. scatteredRubbish
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    scatteredRubbish New Member

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    A few months back I posted on the forums questioning whether or not I should hold onto or dump a WL policy I have through NWM. After the advice given here, some fantastic podcasts I found exclusively on life insurance, and discussion with my adviser I have decided to hold on to the policy.

    A lot of advice that was given to me was that I was not maxing out my policy and taking the fullest advantage of its cash value accumulation. I'm not sure what I can do to change this as that's key part of why I want a WL policy. A forum poster previously had mentioned internally changing the policy to an ACL policy and others said to add a PUA rider (which I think I already have? This just means by dividends go to paid up additions right?). I have a meeting scheduled with my advisor later this month to discuss some of this and I am looking to go into it with a bit more knowledge and information. I appreciate being able to get advice from experts here on a topic that can be challenging for your average consumer to fully grasp, so thank you all for that.

    Attached is an image of my policy as it won't let me link to imgur without 20 posts.
     

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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Actually, it's probably perfectly funded for a policy that is fully paid up at age 65. You pay a little more up front for having it paid up sooner than at age 100.
     
    DHK, Jun 14, 2016
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  3. pfg1
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    pfg1 Guru

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    I don't know their products, but it appears you don't have a PUA rider on the policy. A PUA rider allows for additional cash to be paid on the policy that buys addl ins at that time. It would be in addition to the base policy. The div option being PUA is not the rider, that is just the div option. You could ask your agent and see if one could be added. Either way, I think it will be fine.
    A paid up at 65 policy is a nice setup, imo. I would ask about what options you have for accessing the cash during the premium paying years, and after its paid up.
     
    pfg1, Jun 14, 2016
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  4. scatteredRubbish
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    scatteredRubbish New Member

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    My advisor should definitely know what a PUA rider is then? My understanding of it is that you can use PUA rider to fund your policy closer to the MEC limit therefore causing it to grow in value much quicker - is that correct?
     
  5. pfg1
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    pfg1 Guru

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    I would say your advisor should know.If not, might be time to get a new one.
    To answer your question, yes a PUA rider can be used in policy design to help fund addl cash into the policy. But not all companies or products use PUA riders. The product you have might be designed close to the limit as is. Ck w ur guy.
     
    pfg1, Jun 26, 2016
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  6. BeeSelective
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    BeeSelective Guru

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    A dividend paying policy should have several dividend options. Two options are shown on that illustration: 1. Reduce premiums; 2. PUA; paid up additions.
    PUA adds an additional amount of insurance each year.

    A PUA rider is in addition the the PUA dividend option. With the PUA rider you pay additional premiums to get an additional benefit.

    This could get complicated.
     
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