Life insurance question form a novice. Please help:)

[Allen Trent]

My thinking also. However, mosy companies do not let you go up in benefits without another look at you. UT, don't ask, don't get.

Agree. But I have never had an issue with merely changing the Dividend to PUA,but resuming sending in extra money over & above to buy PUAR or other riders required UW

Side note. Considering Met Life I believe sold off their Life policies, I wonder who even services & also might explain the dismal dividend after 55 years if the buyer of Metlife gutted the dividend payout. I can't remember if they sold their life company 5 years ago or merely just quit issuing new life products

 

[rousemark]

My thinking also. However, mosy companies do not let you go up in benefits without another look at you. UT, don't ask, don't get.

You are not actually increasing coverage, you are changing the way the dividend is applied. Should not require underwriting. It is the same as if you changed from Option A to Option B on a UL.

 

[Allen Trent]

You are not actually increasing coverage, you are changing the way the dividend is applied. Should not require underwriting. It is the same as if you changed from Option A to Option B on a UL.

Agree on the dividend,but change from level to increasing on UL is a bit different I think. When a carrier let's you change from level to increasing on a UL, they normally process a base policy face reduction equal to the current CV so that you have the exact same death claim payout today that you had yesterday. IE: 50k policy with 10k CV gets a face reduction to 40k, so that the insurance amount is still 50k that day.

Side note, some UL carriers are not allowing changes to level from increasing on ULs under the non current CSO mortality tables. I Believe it is because the regs would require a full reprice project to install the new CSO mortality tables into those old products merely to allow some material changes like smoker to non smoker or increasing to level. I believe Level to increasing would be fine.

 

[rousemark]

Agree on the dividend,but change from level to increasing on UL is a bit different I think. When a carrier let's you change from level to increasing on a UL, they normally process a base policy face reduction equal to the current CV so that you have the exact same death claim payout today that you had yesterday. IE: 50k policy with 10k CV gets a face reduction to 40k, so that the insurance amount is still 50k that day.

Side note, some UL carriers are not allowing changes to level from increasing on ULs under the non current CSO mortality tables. I Believe it is because the regs would require a full reprice project to install the new CSO mortality tables into those old products merely to allow some material changes like smoker to non smoker or increasing to level. I believe Level to increasing would be fine.

On the Par WL, when you change the dividend option to buying paid up additions there is no increase in the death benefit at the time of change. Ut will not increase until the next dividend distribution and then it would be by a very small amount.

 

[Allen Trent]

On the Par WL, when you change the dividend option to buying paid up additions there is no increase in the death benefit at the time of change. Ut will not increase until the next dividend distribution and then it would be by a very small amount.

Yup, that is what has happened on ones I have changed & even on my own childrens WL that were on reduce premium for a few years but back to buy PUAR

 

[Tahoe Ray]

Side note. Considering Met Life I believe sold off their Life policies, I wonder who even services & also might explain the dismal dividend after 55 years if the buyer of Metlife gutted the dividend payout. I can't remember if they sold their life company 5 years ago or merely just quit issuing new life products

Hahahahaha...there are like 2 people in a basement now servicing these policies. We just did a conversion and it took MONTHS to finally get it done. I'd be surprised if you found someone to answer questions with any detail like that.

 

[Allen Trent]

Hahahahaha...there are like 2 people in a basement now servicing these policies. We just did a conversion and it took MONTHS to finally get it done. I'd be surprised if you found someone to answer questions with any detail like that.

I suspected that. this is what concerns me most about all the other sales of carries to private equity investors or carriers discontinuing. Not just the bad service, but if they gut the policies, etc. It will give us all a bad name when consumers & beneficiaries experience the products poorly

 

[scagnt83]

I suspected that. this is what concerns me most about all the other sales of carries to private equity investors or carriers discontinuing. Not just the bad service, but if they gut the policies, etc. It will give us all a bad name when consumers & beneficiaries experience the products poorly

Old news is new again. Same thing carriers did with UL blocks they bought from small struggling carriers back in the 90s. None of those are above minimum rates. Even strong carriers such as LFG did it (find an old Jefferson Pilot UL and tell me lfg hasnt dropped it to minimum rates).

I guess the bright spot for those is its still a life carrier with strong servicing capability.

At least the minimum rates on those policies were half decent. Today's policies are in even worse danger from a rate perspective. Hopefully the funding levels are better at least.

 

[Allen Trent]

Old news is new again. Same thing carriers did with UL blocks they bought from small struggling carriers back in the 90s. None of those are above minimum rates. Even strong carriers such as LFG did it (find an old Jefferson Pilot UL and tell me lfg hasnt dropped it to minimum rates).

I guess the bright spot for those is its still a life carrier with strong servicing capability.

At least the minimum rates on those policies were half decent. Today's policies are in even worse danger from a rate perspective. Hopefully the funding levels are better at least.

Boy have I been a bit naive overall. But after re-watching the Big short last night & watching for the 1st time China Hustle, I am a ton more jaded today about our financial systems, regulators, rating agencies, etc, etc.

 

[WinoBlues]

At least the minimum rates on those policies were half decent.

True.

However, the back door attack on those is the companies raising the cost of insurance.