Replacing UL1 from Northwestern with APL or 20 Pay Whole Life

Jstantontxfb

Expert
30
I am only interested in performing this replacement if its in My clients best interest.

He has a $250k UL1 policy (death benefit does not increase).
It has $55k in cash value; however he is paying $600 per year to keep it afloat, his concern is Cash Value, and his level death benefit.

With our 20 pay WL He has the benefit of gaining cash value, and his death benefit will increase as dividends are paid.

His plan is to cash out of the UL and fund the new policy, he understands that he will have a higher annual premium, but he will have guaranteed gains.

I am waiting on him to send me a copy of the illustration, this way I can determine whether or not it is in his best interest to replace the policy. My firm is dead set against replacement if at all possible.


Thanks for the input.
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Anyone have any input?
 
Last edited:
Not enough information.

How long as the current policy been in force?

What is the Cost of Insurance this year? (Yes, UL has an increasing cost of insurance... but what is it?)

Is he healthy enough to get similar or better underwriting on the new policy?

Why is he not funding the current UL with the premium he could've put into the new WL? By overfunding the existing UL, he could still build up cash values... just keep in mind the increasing costs of insurance that will erode at the cash values later in his life.

What is 'better' is always subjective to what the client can afford and wants to accomplish.

Have you had him complete a medical exam to determine his underwriting status? Depending on your firm, you could do this without taking an application.

Basically, since you're captive, you should run this case by your manager or other experienced agent to get their input and determine what other facts you need to get the total and clear picture.
 
Thats the plan as of right now, Im not going to replace it if its not in his best interest, I have no desire to cause problems for my insured and his family.
 
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