Low Face Amount Single Premium
- Thread starter jemelton
- Start date
- 15,319
If you don't use a SPWL why not write an underwritten WL? Just because she's over 65 doesn't mean FE is the only option.
Rick
- Thread starter
- #3
- 29,487
They're FE, but Settlers and Sentinel Security will go $3 K on Single pay. Settlers is a much better buy.
Settlers Gold $3K is $1,790.70 and $4K is $2,387.60.
- 4,575
You may be able to end up with any size defacto Paid up WL policy that you want. Because Reduced Paid Up is required of all WL policies, the client could buy a carriers minimum face premium paying policy & add the LUMP sum PUAR to get the extra money into the cash value. At any time after issue, the client is contractually allowed to elect a RPU non-forfeiture option. Now, while it wont be as ideal as a true SPWL that many times might require 15k face or 25k face, you might be able to get a paid up policy all the same. Best product would be to choose one with a very low load on the initial lump sum into the PUAR values. I have had to do this a few times for clients with crashing UL contracts that couldnt be saved. The clients UL CV was too low to 1035 to a SPWL, so we 1035 exchanged to a premium paying low face WL with lump sum PUAR, then elected RPU right after issue to maximize the CV that bought the largest RPU face amount.
- Thread starter
- #6
This may be the most complicated thing in the history of insurance. How in the world did you sell that?
- 29,487
He lost me at defacto.
Sagicor?
- 4,575
Didnt really sell it. Just found a solution to the problem the client came with. They were guaranteed to lose their UL policy within a few years & couldnt pay more into it because of IRS premium restrictions & they didnt have the money. They wanted something out of it. After seeing if their UL carrier would allow them to elect reduced paid up (not an option on 99% of ULs). This was their only option. it sounds complicated, but it really is about as basic as it gets. All WL policies by law require non-forfeiture options such as Cash, Extended Term, reduced paid up. If I had been trying to sell them, this wouldnt have been it. There was little to no commissions on the contract as the client only paid 1 months premium, the rest was low commission PUAR funding. Clients were in a tough spot, just found a solution for them. Every case is not about you making a sale. These were also participating policies, so they will grow as dividends are credited.
- 4,575
He lost me at defacto.
Ha. Good stuff
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