I have a prospect with a four year old UL. It's guaranteed to last until she's 81. I had te carrier run me an in force. It's projected under current assumptions (4.25%) to last until 95. Projected at 4% to last to 90. It's $20K in coverage for $40 per month. She qualifies for an FE WL of 15k for 52 per month. Should I replace it?
Replacement
- Thread starter Toranaga
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- 17,077
It's up to her. Just give her the facts of the policies. If she wants guarantees (most people do) she will lean to the whole-life.
The best thing to do for ULs is make the company tell her how much she needs to pay monthly to GUARANTEE the policy will stay in force to age 95. It will be much higher than you can do it for.
Illistrations = Illusions. Guarantees are the only thing YOU should focus on. If she is OK with non-guarantees that's her decision.
- Thread starter
- #4
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And if she lives past 95 she'll be SOL.
- 26,158
Mrs Jones, this says you need to die by age 95, at best. But if the company feels it needs to change the plan, you got to go by age 80.
Exactly what Newby said. Guarantee v Guarantee. Many times their last annual report is enough to sway them right there on the spot. If not you have to order an inforce showing a solve to carry to maturity based on guarantees. Most companies will not tell you over the phone. If she has the original illustration in her policy packet compare it to the last annual report. Even in just 4 years it may be doing worse now than projected just 4 years ago.
You did not mention how old she is. If she balks at the big difference in death benefit v premium look at a GUL if appropriate.
Exactly what Newby said. Guarantee v Guarantee. Many times their last annual report is enough to sway them right there on the spot. If not you have to order an inforce showing a solve to carry to maturity based on guarantees. Most companies will not tell you over the phone. If she has the original illustration in her policy packet compare it to the last annual report. Even in just 4 years it may be doing worse now than projected just 4 years ago.
You did not mention how old she is. If she balks at the big difference in death benefit v premium look at a GUL if appropriate.
- Thread starter
- #7
She's 63. And she's already sold. I'm going today to take the app. I just wanted to make sure y'all agreed I was helping her and not hurting her. First time I ever replaced a UL and just making sure I'm doing the right thing. I appreciate y'all reinforcing what I thought.
- 26,158
Contestability aside, sounds right to me. If she will let you take the original illustration, the new illustration and an annual report with you to study. Also for her file as CYA.
There is a ton of that stuff out there. The older the better to replace. If she will not part with them get a scanning app for your phone or just use your camera.
- Thread starter
- #9
- 26,158
Awesome. That is how I do it as well. There is a ton of that stuff out there. Great replacement niche.
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