Ohio National WL Policy Design

[SouthernComfort]

Lets say I have a 24 year old male that will be standard nonsmoker and I have $300 month to work with. Which policy Max or Excel will produce the greatest cash value? What is the correct way to design the policy with face vs paid up additions?

Also, 3 year girl, working with a 100 premium. How would you design the policy for maximum benefit?

 

[Larry Tew]

It's not just how much cash value. It's about the cost to access the CV either by surrendering dividends or through loans. Max is ideal for accessing CV at or after age 65 because it has a preferred loan rate (1% less than rate for other WL) after age 65 or 10 years (whichever is longer).

If you're going to max-fund using paid up adds, (API rider), Xcel is very good for someone young. Xcel is designed for long-term value (25 years and more).

 

[SouthernComfort]

I have been playing around in the software software showing the 24 year old male a 500 premium stopping payments at age 54 and have dividend option PUA. The cash value and DB look good on the assumed and the current but horrible on the guaranteed values. This is where I am stuck how can I make him more comfortable about the dividends?

On the 3 year old I think the premium was around 70-80 for 100k. So, take the other 20-30 and select the api rider, correct?

I also showed the father a 20 pay product at 300 month for the child with another company. However if I illustrate a product with that same premium and tell payments to stop at age 23 the current and assumed values kick my other illustrations butt.

One more thing, and I appreciate your help! I looked at an illustration that a NYL rep showed a 69 year old male who has CD's maturing. 300,000. It showed 300,0000 cv day 1 and no additional premiums paid only the PUA and dividend growth. The man is on diabetes medicine(pill) and had bypass 11 years ago. Can an ONL policy be designed this way?

 

[Larry Tew]

It would take some playing around to see if you could duplicate the NYL illustration. Having the CV equal the single premium at the end of the year is pretty irrelevant unless he plans to surrender at the end of the 1st year.

Don't forget to use the FASTeam to help with illustrations.