Is this a good designed WL policy?

[fistvn]

Hi everyone,

I'm looking into buying WL policy with the goals of cash accumulation, extra cash dump in early years and the ability to deposit more even when the policy is paid up after 10 years. I asked my agent to design such policy that BNTRS usually described on here, blended 10-pay WL + term + PUA, and my agent came back with the attached illustration and told me that this is the best policy he can do. And he mentioned that I can not deposit more cash into this policy after year 10 to avoid MEC. As you can see, this policy takes about 13 years to break even with the guaranteed cash value.

Just wonder if this is a good designed policy to move forward closing the deal with him?

Thanks

 

[DHK]

Age and assumed underwriting classification would certainly help in a comparison.

Btw, you can actually contact BNTRS directly and have him run an illustration for you and buy your policy from him. Since you are doubting what your agent is already doing for you, and since you're already "pre-sold" on what Brandon talked about, just contact him directly.

The Insurance Pro Blog

 

[DHK]

Please note Brandon's own blog post on 10-pay life policies:

10 Pay Whole Life Round Up: Who is the Best?

If cash surrender value is really the focus, there are other ways to accomplish this (and we’d strongly argue a better way), and if one were looking to maximize return on premium dollars for death benefit, we’d have to bring endowed guaranteed universal life insurance into the mix to fairly assess just how well that situation is handled with any of these carriers.

 

[fistvn]

DHK, thanks for the prompt reply. I did pm BNTRS but he never reply so I asked my local agent if he can design something similar.

 

[fistvn]

So I was wondering if the attached policy is close enough to the blended 10-pay and need expert's opinion to move forward with my agent.

 

[fistvn]

DHK, the attached quote/illustration was for 39 yrs old male with ultra-preferred non-tobacco classification.

 

[DHK]

Ultra preferred? Do you think you're going to qualify for that underwriting class?

That explains the numbers.

I was looking at Year 5. For Standard Underwriting, I look for 75% or more of all premiums paid as available cash values. (That's just my own rule that seems to fit for maximum cash value policies that are properly structured.) If you pay $10,000 per year, then after 5 years and $50,000, you should have $37,500 or more available NON-GUARANTEED.

Your illustration shows $39,055 GUARANTEED and $43,093 NON-GUARANTEED. Those numbers are quite high (not a bad thing), but the question is... will you qualify for that underwriting class?

 

[fistvn]

I'm healthy overall but I'm not sure if I will be qualified for ultra-preferred but the illustration shows that classification as part of the quote.

 

[DHK]

Did your agent ASSUME your health status? Did he ask you any questions whatsoever about your health status?

I used to be a Mass agent. I'm sorry, but lazy agents just "plug in" whatever looks good for the illustration.

What is your height & weight?

 

[fistvn]

he did not ask about my health, just assume. I'm 5'6 and 160lbs