Why? GUL might go away if premiums not paid in a timely manner?
Sagicor Final Expense Rates
- Thread starter WGO
- Start date
Why? GUL might go away if premiums not paid in a timely manner?
So Does Whole Life.
Anyway, we need to stop looking at GUL like we did before 12/31/2012. It is a new product now because of AG38 and as agents, we need to look at our companies again to be sure it is the right product. Those Guarantees may not be so Guaranteed if you look closely.
Whole Life Guarantees have not changed but GUL has daily. For Seniors (in most cases) that is why WL is better in FE.
- 26,146
Good point on re evaluating the new products. This is a fluid business.
JustinSane
Expert
- 87
GUL is permanent as long as they pay premiums on time. That's the ultimate catch. That is why it is not for everyone, but in some situations, it is a good option.
For smokers, Sagicor is not good any longer for amounts of $25k and up.
For non-smokers, they are still very competitive. If that 62 yr old male was a non-smoker, then the $30k rate would be $55.49/month. Obviously, being a smoker, RNA would likely be his best bet with their very competitive traditional WL product (assuming he medically qualifies, of course).
Also, to clarify what TwiLight said regarding the $25k and up GUL from Sagicor, it IS very competitive for ages 18-65 still, and does NOT require a paramedical exam or APS, just a PHI (and e-app is available). The tier for this is technically $25,000 - $249,999. Above $250k, it is fully underwritten with paramed, etc.
- 19,648
GUL is not forgiving when it has to be reinstated. The guarantees go away. Whole life's guarantees don't go away.
I helped 4 clients get reinstated this week. That is the norm in the FE merket for people to miss payments for various reasons.
Only part timers in the FE business will use UL's, GUL or otherwise, for final expense/burial plans.
I would love to follow those agents that sell that crap in this market.
- 26,146
Not pertaining to FE but what do mean by changes to GUL guarantees post AG38?
Thanks, Lee
GUL has 2 important guarantee periods in the Contract:
1. Initial Guarantee period
2. Extended Guarantee period.
Prior to AG38 and 1/1/2013 the Initial Guarantee period usually was 15 years. Now it is more like 5 years. Meaning the Extended Guarantee period starts earlier.
The Extended Guarantee Period is where all the Guarantee in "GUL" is really defined. Each company defines it differently and is changing that definition to comply with AG38.
The GUL may no longer be that Guaranteed in regular life circumstances. EX: Missed payment or late payment will nullify the Extended Guarantee Period and then if the Policy falls to Zero Cash Value may lapse.
We really need to evaluate how we sell GUL all over again and edumacate them clients with a bunch of E&O disclosure signatures.
I have a an apt with this guy Tuesday (62/M smoker that just signed up with AARP term). So far, my best bet is to sell the Guarantees of whole life without the guess work. It also states on the NYL coverage that they can have a group class rate increase at any time..just like most group plans. I think RYN essential whole life might be one of the best bets for him. Does anybody have a good term rate (20year for more coverage say 50k or 100k...I ran the rates for 20 level term and they where out of the ballpark for 100k, over 200/M.
Just trying to come up with the best solution for this guy. Keep in mind I got the wife coverage with Monumental where she got denied from AARP.....so I have a big in for replacing his coverage.
This might be off track for this thread, but just thought I would throw this scenario out there.
I am believing more in what JD is saying over most since this is considered a medium to low income client. He retired from Pepsi and was a Navy man (Vietnam vet). GUL is not on my radar of options for me personally, maybe a term for more coverage or stick to WL.
Just trying to come up with the best solution for this guy. Keep in mind I got the wife coverage with Monumental where she got denied from AARP.....so I have a big in for replacing his coverage.
This might be off track for this thread, but just thought I would throw this scenario out there.
I am believing more in what JD is saying over most since this is considered a medium to low income client. He retired from Pepsi and was a Navy man (Vietnam vet). GUL is not on my radar of options for me personally, maybe a term for more coverage or stick to WL.
- 26,146
Thank you, I was wondering if you had some super IMO information. ;-)
I will start running illustrations tomorrow and calling the companies. This business is always in a state of change.
I will start running illustrations tomorrow and calling the companies. This business is always in a state of change.
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