Question for the FE Guys

[WinoBlues]

The daughter is going to get a 20 year level term policy with a face amount of 100k with a child rider for 15k.

The daughter really should have a larger face amount than 100k but the income situation is very limited.

At some point in time ownership of the policy will be transferred to the daughter and she will pay the premiums.

Hopefully, I will convert the term policy to a permanent plan somewhere down the line.

Sure I could have simply wrote a small face amount WL on daughter/grandkids, but I really feel this is a better solution given the income situation and need.

Your opinion?



p.s. My total time involved in this whole situation will be less than two hours. I made a decent commission with the two WL sales on Mom/Dad, so it is not like I'm losing money with a small commission on the term sale.

Opinion? Sounds like you did a professional job. Premiums for her and the kids have to be in the $10 to $15 range.

 

[Chicken Coop]

Opinion? Sounds like you did a professional job. Premiums for her and the kids have to be in the $10 to $15 range.

Thank you.

As far as the premiums go, I generally like to quote the standard rate class, but when it is all said and done your price range will probably be correct.

 

[nfl72]

stated by coop

A caveat to that is the age of the grandchildren may require them to sign also. I have a company that requires age 16 and above to sign. Probably not the case with a 24 year old mom.

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Just to give you guys some product knowledge, In Michigan if they are 15 but closer to 16 they need to sign some applications.

 

[Norwayguy]

It could also come from accumulated dividends.

Yes, I put that down in a previous answer, I was on my phone.

 

[Chicken Coop]

Yes, I put that down in a previous answer, I was on my phone.

In reality, what percentage of FE WL policies out there are participating?

A very small percentage, I reckon.



(nfl72....participating means dividend paying)

 

[Norwayguy]

In reality, what percentage of FE WL policies out there are participating?

A very small percentage, I reckon.

(nfl72....participating means dividend paying)

Probably few being sold in the FE market. But the major WL players NYL, Mass Mutual, MWM, Guardian, Penn Mutual and others sell a bunch of it.

 

[Chicken Coop]

Probably few being sold in the FE market. But the major WL players NYL, Mass Mutual, MWM, Guardian, Penn Mutual and others sell a bunch of it.

Yes, tons of Par WL is sold by the big boys.

I was referring to the simplified issue, smaller face amount WL
marketplace.

 

[rousemark]

Yes, tons of Par WL is sold by the big boys.

I was referring to the simplified issue, smaller face amount WL
marketplace.

I have not been able to find a Par SIWL that has PUAs..Would be nice to have one that would increase the DB as an inflation protector.

 

[GAInsuranceGal]

The daughter is going to get a 20 year level term policy with a face amount of 100k with a child rider for 15k.

The daughter really should have a larger face amount than 100k but the income situation is very limited.

At some point in time ownership of the policy will be transferred to the daughter and she will pay the premiums.

Hopefully, I will convert the term policy to a permanent plan somewhere down the line.

Sure I could have simply wrote a small face amount WL on daughter/grandkids, but I really feel this is a better solution given the income situation and need.

Your opinion?



p.s. My total time involved in this whole situation will be less than two hours. I made a decent commission with the two WL sales on Mom/Dad, so it is not like I'm losing money with a small commission on the term sale.

Me personally, I would have done a term policy also. Does the child rider offer the option to convert it to a whole policy when the child becomes 18?

 

[tins]

In reality, what percentage of FE WL policies out there are participating?

A very small percentage, I reckon.

Look around for a fraternal. There are a few that offer par-whole life that go down to $3K contracts. Most aren't rated, keep that in mind if that is an issue for you or you clients. Gleaner Life has an 'A-' and their par-whole life goes down to 10k. But they are fully underwritten and sometimes order parameds even on those $10K life contracts.