IUL for diabetic

[Fisher]

45-year-old male NT. 5'11" 245#. Type II diabetes dx 2013, treated with Metformin 1000mg 2xD. Last A1c reading of 6.9 in September of this year. Heart attack in 9/2013 and had 1 stent placed. He is on no heart maintenance meds.

Current coverage is a term conversion UL through Ohio National. He is interested in an IUL and I'm throwing this out while I speak with various underwriters.

 

[AndrewRoche]

Don’t you think it’s your responsibility to tell the client that even if a company made an offer to insure he shouldn’t buy that type product?

 

[Fisher]

Explain your thinking, Andrew.

 

[AndrewRoche]

The cost of insurance is too much and therefore the product won’t perform. Kinda scary that an agent would even ask that question.

 

[VolAgent]

Don’t you think it’s your responsibility to tell the client that even if a company made an offer to insure he shouldn’t buy that type product?

Why in the world wouldn't he convert to an IUL? Properly funded it can be a good product. The question is, will he properly fund it? And while IUL is new to Ohio National, they have generally been good with their UL products and interest rates, so I would be surprised if they played any games with their IUL product.

Also, he may want to look at their 10 pay and age 65 whole life products as well. That is one nice thing about Ohio National. If you have the Plus term product, you can convert to any permanent product currently offered.

 

[AndrewRoche]

I may have misunderstood. I thought he said that he could convert to a UL but that he was also interested in purchasing an IUL.
That said, why would you advise a table 6 risk to buy an IUL? If it’s for cash value what other savings/investments does the IUL outperform? If it’s for death benefit protection....we’ll thats just too obvious.

 

[VolAgent]

I may have misunderstood. I thought he said that he could convert to a UL but that he was also interested in purchasing an IUL.
That said, why would you advise a table 6 risk to buy an IUL? If it’s for cash value what other savings/investments does the IUL outperform? If it’s for death benefit protection....we’ll thats just too obvious.

I misunderstood. I thought this was going to be a term conversion to an IUL. Instead it appears he already has a UL and that it was a converted term policy.

Assuming he is table rated, then I would tend to agree with you. That may have enough impact on the IUL to make it unattractive.

 

[Fisher]

Yes, the guy currently has a UL w/Ohio National that was converted from an ON term product in 2014.

Andrew, your sanctimony got the better of you and you jumped the gun. Nowhere did I say that I was 'advising' him to switch from the UL he currently has to an IUL. He came to me with the question because a friend of his was credited over 14% this year on her IUL - I 'advised' him that I would find out what his options might be. Including that his best option could very well be to stick with what he has and be damn happy he has it.

 

[AndrewRoche]

My apologies. My response was flip and the tone was wrong.
I was just surprised that any agent would ever think of selling such a complex product without knowing the basics. You took the time to ask about the policy and for that reason you should be applauded. Many other agents would just use the clients inquiry as an opportunity to sell them an expensive product for the high commission That said I shouldn’t have responded in the way I did.

 

[VolAgent]

My apologies. My response was flip and the tone was wrong.
I was just surprised that any agent would ever think of selling such a complex product without knowing the basics. You took the time to ask about the policy and for that reason you should b applauded. Many other agents would just use the clients inquiry as an opportunity to sell them an expensive product for the high commission That said I shouldn’t have responded in the way I did.

Stop while you are ahead.

While I do agree that an IUL might end up pretty ugly depending on what rating this guy gets, you are so quick to lump everyone else into being bad.

Too bad for Fisher that the guy doesn't still have the term policy so he can do the conversion, particularly now that ONFS has its own IUL.