- 5,305
The rep says it is whole life on the phone. And price-wise, it was measurably better than several of the typical low cost leaders.
Never Seen a Policy
- Thread starter HoosierLife
- Start date
- 19,648
I've never had one call it whole life on the phone. They will call it "permanent" but they will also say that the premiums are not guaranteed when you ask the direct question.
They are a non issue as a competitor. If someone is having trouble selling against AARP then they are having trouble period. Of course some people are too dumb to change. You will also run across the occasional person that will not change from from LH or Old American. Those are aberations. It's nothing to be concerned about.
- 5,305
I've seen it twice where the AARP conversion to whole life was less premium per month than Oxford Life.
- Thread starter
- #14
- 7,012
Ok what's the deal with UL? What affects the premiums? And if people miss a payment on the SIWL policy they forfeit too, so what's the difference. Hmmm I thought the accumulated CV in a WL policy would make the payments if a premium is missed. What am I missing here?
- 5,305
A lot of the ULs you will see are not premium-guaranteed, like JD mentioned.
Just ask Grandma if she would like to pay into any policy for years just to see the price skyrocket and become unaffordable.
Just ask Grandma if she would like to pay into any policy for years just to see the price skyrocket and become unaffordable.
- Thread starter
- #16
- 7,012
Ok but what makes the premiums skyrocket?
AARP's UL... at what point does the prem increase? Is it age banded like some of their term, or is it based upon investment returns or interest rates? I would think with the low <unheard of> rates of today that these UL type FE products would be self destructing right and left.
Anyway, I am not totally clear on what triggers the increase in prem; [block of business experience, attained age, mortality, int rate return, etc; or all of the above]. Splain it to me.......
- 19,648
Not possible. AARP doesn't have whole life.
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It doesn't have a set time for an increase. It simply says in the contract that "premiums are not guaranteed". It does go on to say that they can't be singled out for an increase and it has to be raised on the whole class. But, you don't have to go further than "premiums are not guaranteed". That's a deal killer for FE in ay right thinking person's mind. Might as well have term for FE if you are not concerned about price increases.
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All of the UL's will tell you that the rates are not guaranteed except for a certain period of time. Some are 7 years, some are 15 years. RNA's new one is 20 yrs. The AARP has no time frame except to say it can be at "anytime".
GUL's will have the premium guarnateed. They would be fine for the many folks outside of the FE market norm. They really are not that less expensive than underwritten whole life and most won't go down to face amounts that are the norm for FE policies. And the guarantees are not as forgiving on missed payments as whole life. Another reason they are not for our market.
We had a fellow come into this area a few years ago selling UL policies for FE. Finding those he sold was like found money. I don't know whatever happened to the guy. But I've many like that come and go. I have yet to run across a seasned FE, pre-need agent that sells UL's for burila plans. Maybe there are some out there?
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- 26,140
The simple answer (kinda) is when the cash value is not sufficient to pay the monthly cost. Then you have to pay more. By then the policy is in deep caca. That does not apply to GUL. There CV can be zero from day one. Some policies_do_ allow you to make up payments.
If you are going to compare SIWL to GUL or UL you have to use the same premium and face amount.
Yes, there are some UL'S that are tanking. These are older accumulator UL's. Some can be salvaged but you need to know what you are doing and find them early enough.
Lee
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So I'm about ready to go out and knock some doors and cold call. Just need to get appointed. I have a decent understanding of the warm up, presentation and close.
But I've never seen a final expense or funeral policy before. I've read/heard about AARP or other big names offering term to 80, graded and/or raise premiums every 5 years. You guys talk about showing them in their current polices where it says these things. But I have never seen a policy.
Does anybody know where I can download a bunch of different policies (FE and funeral/plot) so I know what I'm looking at when I get in someone's home?
Most agents have never read a policy much less know how to review one.
Start with reading your own policy. As someone else suggested request sample policies from the companies you will write. If you help surrender someone's policy copy it before sending it in.
Learning how to review a policy is well worth the time. But do not confuse that with sales activity.
Lee
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