Participating vs. Non-Participating Whole Life

[James]

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

If this is gonna be a paid up policy, the guarantee of WL is second to none. As the lady obviously knows, as she reguested WL.

 

[bobson]

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.

What is a needs analysis? Do you think a guy that won't buy his own life insurance policy for the love of his family is going to sit down and do a 'needs analysis'?

"Well the ol' lady can get a job if sumpin' happen's to me. Guess I don't need none of this insurance stuff."


As agents I can see the argument for selling what the underwriting guidelines allow but you are not going to get this guy to sit down for a needs analysis.

I find it interesting how some of the proponents of buying as much health insurance as possible scream the loudest against doing that for life insurance.

 

[LGilmore]

"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?)"

No, I'm well aware of demutualization. Many Mutuals areso in name only these days. In the past, many mutuals who sold UL policies, sold them through a subsidary fully owned by the mutual. So those policies sold by the sub, were not par policies, but the profits that company gained, went towards the par policies the mutual sold.

I recently looked at what true mutuals are left, there taint that many any more.

 

[Newby]

"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?)"

No, I'm well aware of demutualization. Many Mutuals areso in name only these days. In the past, many mutuals who sold UL policies, sold them through a subsidary fully owned by the mutual. So those policies sold by the sub, were not par policies, but the profits that company gained, went towards the par policies the mutual sold.

I recently looked at what true mutuals are left, there taint that many any more.

I don't know if I understand it all. I just know the policy will say if it is a participating one or not. One of my carriers (Shenandoah Life) has both participating and non-participating within the same company.