The ones I looked at were participating but were "not expected to pay a dividend".
Question for the FE Guys
- Thread starter Chicken Coop
- Start date
The ones I looked at were participating but were "not expected to pay a dividend".
- 1,953
Here's a suggestion. If there's a question about if a certain policy will pay face plus cash value try reading the policy. Don't people at least take a look at sample policies before they sell them?
If they don't read the brochures, then surely you don't expect them to actually read a policy.
I took your advice and pulled a policy that I wrote recently.
It was a 43Mnt it was a Whole Life pay to 100 for $25,000.
After 32 years it has a cash value of $24,226. It also has a death benefit of $41,448.
So it appears that he will indeed get most of the cash value back at death. And that is true for every year illustrated.
So the statement by the foresters rep while technically not 100 percent correct was closer to being right than wrong.
It was a 43Mnt it was a Whole Life pay to 100 for $25,000.
After 32 years it has a cash value of $24,226. It also has a death benefit of $41,448.
So it appears that he will indeed get most of the cash value back at death. And that is true for every year illustrated.
So the statement by the foresters rep while technically not 100 percent correct was closer to being right than wrong.
- 17,072
nfl72 said:
You are simply missing the point. He gets NONE of the cash value at death. Cash value is a living benefit of whole-life NOT a death benefit.
The figures you are looking at are NON-guaranteed growth through dividends. The cash value is GUARANTEED. There is a huge difference.
You call it splitting hairs. I call it being truthful. I'm not going to tell people anything that I couldn't put in writing.
The way I look at it is this
For all practical purposes with this policy the beneficiary will be getting the majority of the cash value back at death. Does it really matter where the money actually comes from? I don't beleive it does.
This whole thread is full of different interpretations. For instance Norwayguy clearly states at death the policy will only pay the face amount, which is clearly not true based upon the contract.
If your trying to help your client out in this case you write them a SIWL policy that they can afford and will probably keep on the books. Writing them a term policy will tide them over until they run into a real salesman who will then replace it.
For all practical purposes with this policy the beneficiary will be getting the majority of the cash value back at death. Does it really matter where the money actually comes from? I don't beleive it does.
This whole thread is full of different interpretations. For instance Norwayguy clearly states at death the policy will only pay the face amount, which is clearly not true based upon the contract.
If your trying to help your client out in this case you write them a SIWL policy that they can afford and will probably keep on the books. Writing them a term policy will tide them over until they run into a real salesman who will then replace it.
- 8,707
nfl72 said:
No my statement is totally correct. If the client recieves dividends that purchase PUAs those PUAs increase the face amount of the death benefit.
Let me ask you this what happens to that policy you sold if after 32 years Foresters has not paid a dividend, to my knowledge they have never paid a dividend yet. Without dividends the policy will have guaranteed cash value in it but the death benefit would still be $25000.
- 17,072
- 9,744
What happens if they surrender the PUAs, or withdraw the accumes?
- Thread starter
- #80
Chicken Coop
Expert
- 58
Yes, children have a conversion option, up to a max of 50k, when they drop off rider at age 24.
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