Participating vs. Non-Participating Whole Life

Mar 3, 2008

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  1. aufan
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    aufan Super Genius

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    I am quoting a $100,000 whole life policy for a lady who wants it on her 23 yr old son in law. All joking aside, she wants to make sure her daughter and grandchildren are protected in case he dies. She has developed diabetes late in life and has a whole life policy on herself. As you can imagine, she is glad she has it now.

    I am looking at two companies. American Fidelity for non-participating and Assurity for participating. I like the way the non-guaranteed values look on the Assurity product. However, I wanted some input from you guys/girls on pros and cons of the two (non-particpating vs particating).
     
    aufan, Mar 3, 2008
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  2. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    The question is NOT par vs. non-par.

    $100,000 ain't aquat for a 23 year old's wife and kids.

    Take whatever she was gonna spend on the whole life, and buy as much 20 year level term insurance as it will buy.

    You might not make as much, but THAT'S doing the right thing/job for the client.
     
  3. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    You are missing the point,she wants her gift to last a life time......how ever when you set up the exam I would talk to him about a cheap high face term to add to it out of his pocket because he is already doing the exam and its the right thing to do for his family....


     
  4. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    "she wants to make sure her daughter and grandchildren are protected in case he dies"

    Where does it say she wants her gift to last a lifetime?
     
  5. James
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    James Guru

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    Always choose the PWL, look into Mass, Guardian, MT, IM also.
     
    James, Mar 3, 2008
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  6. James
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    James Guru

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    Read between the damn lines okay! Yet it was indicated as the original poster stated, "As you can imagine, she is glad she has it now", referring to the WL policy.
     
    James, Mar 3, 2008
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  7. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    I've delivered a fair amount of death claims and I've never had one single beneficiary ask me what kind of policy it was.

    So let's say two years from now the 23 year old is killed in a car wreck. You can provide a whole life death benefit of $100,000 or term of what $500-600,000? for the wife and kids...

    How would you be able to sleep at night?

    He's got plenty of time to build assets, and may even convert some of the term down the road.

    The important thing right now is NOT that he's got a paid up $100,000 policy at 63.

    The wife and kids NEED protection.
     
  8. Mr. Bill
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    Mr. Bill Guru

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    Geez. The cost of a term policy for a 23year old is peanuts. If Grandma will pay the whole life, sell her a term as well.
     
  9. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    If they can afford to buy both whole life and term, great. But if it's one or the other, it's a no-brainer for the term.
     
  10. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    so what happens after 30 years.......does granny get her wish.......
     
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