Ohio National and Constellation

[Lloyds of Lubbock]

I'm pretty sure that Guardian discounts required premiums for clients that utilize their PDA account to specifically avoid this issue.

I may be mistaken but that's how I recall it working.

Guardian has a discount rate of 2.75, taxable in the year the discount is received.,
The dscount is subject to certain guidelines, maximum deposit is 1,000,000

 

[scagnt83]

Even if Penn Mutual was acquired by a similar company, they have that overloan protection rider on their WL... so that's attractive to me.

Midland doesn't do WL but it has overloan, like most carriers

Penn has Overloan Protection on WL though. They are the only WL I know of on the entire market to offer Overloan Protection. That is a huge selling point when selling for CV buildup.

 

[DHK]

My theory is that IUL has overloan protection for "Just in case", while Penn Mutual has it for strategic income cash flow purposes. I've been hearing that Penn's cash flow projections have been higher than Ohio National's... and I predict this is why.

 

[scagnt83]

My theory is that IUL has overloan protection for "Just in case", while Penn Mutual has it for strategic income cash flow purposes. I've been hearing that Penn's cash flow projections have been higher than Ohio National's... and I predict this is why.

Penn's CV accumulation blows ON away last I compared the two. But Penn has a Dividend rate that is 1% higher than ON. So that makes it perform better on both accumulation and distribution.

* The overloan protection rider is usually not available on ULs with CVAT chosen. This is because of the increasing expense CVAT enacts on the policy (via increased DB) vs. GPT.

But WL uses CVAT. This is why most WL carriers dont offer Overloan Protection on WL, its more expensive to hedge for when using CVAT testing.

 

[DWPCL]

Its just a PDA account that does a 5 or 7 pay for you. (I think)

You can do the same with pretty much any WL or IUL. PDA a single premium on a 5 or 7 pay policy.

They have a true single premium WL. They also have over loan protection rider on the cash focused WL policies.

 

[DHK]

They have a true single premium WL. They also have over loan protection rider on the cash focused WL policies.

OneAmerica has overloan protection on their WL? I thought that was just Penn?

 

[DWPCL]

OneAmerica has overloan protection on their WL? I thought that was just Penn?

The have an overloan protection rider on their WL "select" plans.

 

[DHK]

Good to know! Thanks! (I haven't looked at any of their products yet.)

 

[formeragent]

As of this morning Ohio is allowing in-force projections of whole life. Surprise surprise, the illustrations are dreadful. Zero or near-zero dividends on a 10-Pay policy. If any of your clients are using dividends to offset premiums they're going to be in for a nasty surprise.

 

[Lloyds of Lubbock]

Is this different than a regular inforce.
I just ran the other day on line, a ten pay it doesnt look great it is far from zero dividend.
If you have financed any of their policies you have a problem.