- 15,041
Thus the qualifiers.
Also, miss a payment on a GUL and it loses the guarantee. It may or may not have a catch-up provision to restore it. I do recall one that had such a clause, but the interest used to calculate it was pretty stout.
Simple Dumb Question - Life Insurance Guarantees
- Thread starter Milkman1265
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- life insurance
Thus the qualifiers.
Also, miss a payment on a GUL and it loses the guarantee. It may or may not have a catch-up provision to restore it. I do recall one that had such a clause, but the interest used to calculate it was pretty stout.
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- #22
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do they outline that in the illustration that if you miss a payment guarantee goes by bye?
- 15,041
Generally in the verbiage that goes before the numbers. It is also included in the policy. I don't know if it has to go in the illustration, but it is definitely a good idea for CYA. It definitely is in the policy.
- 24,978
All illustrations are based on what you enter today. If you enter level premiums that is what it knows. Note that the guaranteed column in an illustration done 10 years ago is going to look different than an inforce of the same policy today.
Note that if you miss a couple payments in a whole life policy it could terminate as well. Depends on if there is any cash values left to APL.
I have several GUL policies inforce that the clients have missed payments, loaned, and changed death benefits with guarantees intact.
