Have a 42 year old friend/smoker who is shopping for rates on whole life and would like to give me the business if I am somewhat competitive. He is looking for a $500,000 Whole Life policy in addition to a $500,000 term. He currently has Whole life quotes from Met Life, aviva, and Dynamax. The only number he gave me was $195 for $100,000 of Dynamax and he assumes $500,000 of that would be around $1,000, which is higher than the other 2. I can handle the term, but unsure how to handle whole life end. Thank you for any and all help.
Looking for Whole Life Recomendation
- Thread starter osumocha
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First are you sure he's looking at whole life? And he's a smoker? You need to see what he's being shown. Because without running it I question 195 for 100k on a 42 year old smoker. doesn't sound right, could be wrong, but doesn't sound right.
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I don't believe that he has been quoted whole life. RNA is almost impossible to beat on fully underwritten whole life and the best rate for a 42 year old male smoker with them is $1614/yr for $100,000 face and $7525/yr for $500,000 face.
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Oops. Sorry for the misinformation. The dynamax is around $196/month or about $2340/yr., not $1000. And he stated that the other 2 would be less than that amount X 5. So his current quote for $500,000 would be $2340 X5=$11,700/year or about $975/ month. I do not know about Aviva, he will let me know this weekend. Thanks again.
Monumental (Dynamax - kinda sounds luike a battery name) is non-par so will be cheaper. MetLife is par so can't really compare the 2. Corerect post above that AVIVA does not do WL, just lifetime GUL. Only drawback to WL on him is its not flexible in that even if he quits smoking at some point he's going to be stuck with smoker rates forever as you can't change underwrioting cl;ass like you can on a UL.
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Every whole life company I write for will let the client go to non tobacco if they quit smoking.
It's not an automatic. It's called "clinical underwriting". Ohio National for example will NOT automatically give a previous tobacco user's policy a non-tobacco rate if they stop using tobacco if they have experienced a health issue since issue.
Example: Smoker is issued at smoker rates. He has a heart attack and decides to quit smoking. He will NOT be changed to non-smoker rates.
We assume all the companies will automatically upgrade, but you might be surprised if you called and asked.
- 18,988
Yes, that is correct. If something has happened healthwise they will not reducde the rate. I have had only one that actually quit out of the hundreds that told me they were going to quit. The one that did quit it ws a simple affadavit that they had not used tobacco for the last 12 months and they changed the rate. On this person nothing had changed healthwise. If it had I'm sure there would have been a problem.
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