Question for the FE Guys

[WinoBlues]

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.

A real salesman is going to going to say "I'm sorry Mrs Jones, this agent is either very inexperienced and does not know what he's is selling or he is a liar. I see he has been an agent for 4 years, while a short time he definitively should know better. Let's take a look at that policy and see what it says. By the way, he did not tell you that these premiums are guaranteed to never go up, did he? Would you like to see what a real life insurance policy can do for you"

I spoke to Foresters service this morning. He said they do not have a whole life policy that pays cash values and death benefit that the agent must be talking about UL. I also spoke to marketing, same thing. Of course they are not ace salesmen, so what do they know?

 

[VolAgent]

I spoke to Foresters service this morning. He said they do not have a whole life policy that pays cash values and death benefit that the agent must be talking about UL. I also spoke to marketing, something. Of course they are not ace salesmen, so what do they know?

There isn't a contract alive that pays death benefit plus cash value. Paying cash value could be a taxable event. Under normal circumstances death benefit is not subject to income tax. Even UL Option B does not pay death benefit plus cash value. Option B increases the death benefit by the same amount as the cash value.

 

[rousemark]

There isn't a contract alive that pays death benefit plus cash value. Paying cash value could be a taxable event. Under normal circumstances death benefit is not subject to income tax. Even UL Option B does not pay death benefit plus cash value. Option B increases the death benefit by the same amount as the cash value.

Good point that most of us overlook when explaining option b.. However, under the law there is a definite difference between the taxation of cash value and death benefit.

 

[Newby]

There isn't a contract alive that pays death benefit plus cash value. Paying cash value could be a taxable event. Under normal circumstances death benefit is not subject to income tax. Even UL Option B does not pay death benefit plus cash value. Option B increases the death benefit by the same amount as the cash value.

I agree that is an IMPORTANT point.

 

[WinoBlues]

There isn't a contract alive that pays death benefit plus cash value. Paying cash value could be a taxable event. Under normal circumstances death benefit is not subject to income tax. Even UL Option B does not pay death benefit plus cash value. Option B increases the death benefit by the same amount as the cash value.

Remember I did not say it. ""I spoke to Foresters service this morning. He said they do not have a whole life policy that pays cash values and death benefit that the agent must be talking about UL. ""

Read more: Insurance Forum

 

[VolAgent]

Remember I did not say it. ""I spoke to Foresters service this morning. He said they do not have a whole life policy that pays cash values and death benefit that the agent must be talking about UL. ""

Read more: Insurance Forum

I know you didn't. I'm simply saying, there isn't a single contract that does. Oh, maybe decades ago before the ruling. But certainly nothing since and nothing any one of us would be selling.

 

[WinoBlues]

I know you didn't. I'm simply saying, there isn't a single contract that does. Oh, maybe decades ago before the ruling. But certainly nothing since and nothing any one of us would be selling.

On the other hand, if you are a super salesman. The truth really does not matter, Ask NFL.

OK, I will quit now.

 

[nfl72]

All i did was try and reiterate what I was told by Foresters on more than one occassion. The first time we spoke was early in the year when I callled for a totally unrelated matter. The sales rep asked me if I had heard about the new policy for people under 50. He then started telling me about the merits of the policy. One of the key things he stated was the cassh value being added tot he death benefit. I didnt bring it up he did.

Then a few months ago it came up on the forum when people were talking about the pros and cons of Foresters. At time some people questioned whether or not the cash value issue was true. I then called and it was verified by Foresters that yes it is added at death.

When I spoke with them yesterday they said most of it would go the death benefit but not 100%. He alluded to about 70%, his math not mine

All I know for sure is what I am told by Foresters. And yes I know it can be hard to get a concrete answer from them. I did my due diligence when I called them and they told me for at least the third time what I had been told was true. Except for the fact that not all cash value is returned. They do take out fees.

If you don't lke what i do,,, sue me. You can get behind the guy suing me for my press one leads.

 

[senior-advisor-indiana]

All i did was try and reiterate what I was told by Foresters on more than one occassion. The first time we spoke was early in the year when I callled for a totally unrelated matter. The sales rep asked me if I had heard about the new policy for people under 50. He then started telling me about the merits of the policy. One of the key things he stated was the cassh value being added tot he death benefit. I didnt bring it up he did.

Then a few months ago it came up on the forum when people were talking about the pros and cons of Foresters. At time some people questioned whether or not the cash value issue was true. I then called and it was verified by Foresters that yes it is added at death.

When I spoke with them yesterday they said most of it would go the death benefit but not 100%. He alluded to about 70%, his math not mine

All I know for sure is what I am told by Foresters. And yes I know it can be hard to get a concrete answer from them. I did my due diligence when I called them and they told me for at least the third time what I had been told was true. Except for the fact that not all cash value is returned. They do take out fees.

If you don't lke what i do,,, sue me. You can get behind the guy suing me for my press one leads.

Sounds like you know what you are doing and have good comprehension skills. Good luck to you...