IUL Over-Loan Protection Rider

[Justin Bilyj]

What company(s) allow for no charge for this rider until its actually utilized?

I assume since there's no free lunch, this feature which won't be utilized unless its necessary, is the cost more at the time of use? Does it mean higher charges somewhere else?

Thanks

 

[ktmorgan]

Greetings,

To me that seems like that's equivalent to an option buyer being granted a free option until it gets knocked into-the-money. And only then does the option buyer (policy-holder) pay the premium to the option seller. In that case the option model doesn't solve and the option seller(ins co) has left a lot of foregone premium miss-priced and therefore unsold at the time of demand.

I'm an absolutely rookie in the insurance biz but I would be surprised to hear of an insurance company leaving money on the table where there was once demand for a product they were selling.

edit: unless like you suggested they charged for other features elsewhere.

What company(s) allow for no charge for this rider until its actually utilized?

I assume since there's no free lunch, this feature which won't be utilized unless its necessary, is the cost more at the time of use? Does it mean higher charges somewhere else?

Thanks

 

[Mehler91]

I know Penn Mutual offers it on their WL and IUL

 

[lprobin]

Most IUL products offer an overloan protection rider and i am not aware of any that charge up front. Normally only charges if activated.