- 9,744
Doesn't make any difference. Whether she does or doesn't, it's not a problem.
If the 23 year old's death occurs in three years, wife a wife and some little kids with only 100K in DB, now that's a problem.
Participating vs. Non-Participating Whole Life
- Thread starter aufan
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- whole life
Doesn't make any difference. Whether she does or doesn't, it's not a problem.
If the 23 year old's death occurs in three years, wife a wife and some little kids with only 100K in DB, now that's a problem.
- Staff
- #12
and thats why you try to sell the dude the term plan.......
- 4,132
most wl allow you to purchase a term rider that can be converted to more wl. Everybody's kinda right here. Listen to what the client WANTS and suggest some ways to enhance it. Cake and ice cream too.
WL will help in other ways other than a premature death.. Cash Values don't count against FASFA for one. It works well as a safe emergency fund for another... creditors can't get it.. and so on..
par and non par I think basically depends on the company is it a mutual or stock. A mutual sells par because they have no stockholders so "profits" come in the form of dividends above and beyond the guarantee. non par is sold by stock companies whom have stockholders to pay profits to, so policyholders don't share in profits. I could be dating myself.. is it different than that?
WL will help in other ways other than a premature death.. Cash Values don't count against FASFA for one. It works well as a safe emergency fund for another... creditors can't get it.. and so on..
par and non par I think basically depends on the company is it a mutual or stock. A mutual sells par because they have no stockholders so "profits" come in the form of dividends above and beyond the guarantee. non par is sold by stock companies whom have stockholders to pay profits to, so policyholders don't share in profits. I could be dating myself.. is it different than that?
- 1,926
Do what the lady wants, but who pays the premium after she dies?
- Staff
- #15
Well thats a good question......if it is a Participating WL it could end up paying it's own prem. were as a NON~Participating WILL NOT......
- 2,152
In some aspects I really can not believe this is even a discussion? Granny wants to buy a WL Policy, but..... Geez people, get a life already. What the dude is such a dead beat he can not afford a term policy on his own, granny has to buy that do?
How did you (she) arrive at a $100,000 face? Is this just an aribtrary decision or was a real needs analysis done?
Frankly, I didn't know non-par still existed.
FWIW, I do agree with other comments. If the analysis shows a need for more than $100,000 use a combination of term & perm and gradually convert the term over time.
Frankly, I didn't know non-par still existed.
FWIW, I do agree with other comments. If the analysis shows a need for more than $100,000 use a combination of term & perm and gradually convert the term over time.
- 17,077
I read it that she wants to do it as a gift. I assume that means a single pay policy.
To insure him for $100,000 at age 23 she's looking at paying around $15,000 for a paid up participating policy.
If you compare that to buying a 30-year level term she will pay in around $5,000 but it will be a gift that he will likely outlive. Plus what is she going to do, hand him over a payment book if she dies or can not pay for some reason after she starts it? ...some gift!
The whole-life makes the most sense in this type of situation. And I would always lean toward participating if all else is equal.
And for the poster who said Mutuals participate and stock companies don't...it ain't that simple anymore. Many mutuals do NOT pay dividends (participate) and some of the biggest companies that do are now stock companies (ever hear of MetLife and Prudential?)
I wish ALL grannies would gift this way. It would make all our jobs much easier.
To insure him for $100,000 at age 23 she's looking at paying around $15,000 for a paid up participating policy.
If you compare that to buying a 30-year level term she will pay in around $5,000 but it will be a gift that he will likely outlive. Plus what is she going to do, hand him over a payment book if she dies or can not pay for some reason after she starts it? ...some gift!
The whole-life makes the most sense in this type of situation. And I would always lean toward participating if all else is equal.
And for the poster who said Mutuals participate and stock companies don't...it ain't that simple anymore. Many mutuals do NOT pay dividends (participate) and some of the biggest companies that do are now stock companies (ever hear of MetLife and Prudential?)
I wish ALL grannies would gift this way. It would make all our jobs much easier.
- 2,152
Unfortunely people are never happy, like posters here. The gift isn't good enough, granny should be now held responsible for his entire worth as in form of a DB. I imagine these people would demand Granny buy them auto insurance if she brought them a car?
G
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Why not sell a UL here? Best (better) of both worlds... permanent policy, lower prems... and flexibility to make changes later on.
(Not debating... just asking.)
Al
(Not debating... just asking.)
Al
