Speaking of UL...

[WinoBlues]

I do not disagree with you. It is the blanket statements that X policy type is bad. I had the same opinion of FE till I came to this forum. I was wrong. Newby explained it best once when he mentioned that Pre Need agents had a low opinion of FE agents. It was not the policy type but the "agents" I had come in behind. Same for some traditional "agents" You really see it in Annuities. So now Annuities get a bad rap.

My Ex wife and her husband have great ONL ULs that they have had about 10 years. Their agent is brilliant and reviews them every other year with them. He is also very handsome and witty.

There is a ton of old UL out there that needs replacing. I wrote some of it back in the day. There is also a lot that is so much better than anything you could put them into today. I write some of it. But that takes an Insurance Agent and case design.

Let's use your ex wife as an example. What did you recommend to replace that UL?

I do not personally know an agent better at replacing policies than I. But I have to know that I am putting them in a better place or I become "that guy"

I am big on death benefit per per premium dollar, guarantees and short paying a policy. Sometime FE is better, sometimes it is UL. Sometimes it reduce the UL face amount and stop paying on it. No two 60 year olds are the same.

BTW, I also use your wording when explaining some ULs. Get their attention.

Lee

My suggestion is a true story, i was looking at my ex-wifes permanent policy (that was her discription) she was not getting it. "But the agent said it was permanent". she was lead to believe it was whole life. Only when i said, well if you die before you are 74, the kids get 100,000, but if you die after 74, the kids get nothing. Yes that woke her up! Her opinion of insurance agents is now even lower, something like gum stuck on the bottom of her shoe! or was that dog poo on the bottom of her shoe. They're a lot of them out they're sold by misleading agents. Who are now long gone. Grapped a few dollars of commission, screwing the client. Yes i suppose a well funded UL is ok, but most are not, and are ready to blow up. On hers she has paid 85 a month for 15 yrs, 4%, interest, has 10k of cash value, but now the insurance cost is going to 115, meaning they will take 30 difference out of the cash pot, until it is gone, 30 a month, then 45, then 65, until the cash value is 0. It is an A.R.T. meaning the insurance cost goes up every year! What is the cost of an A.R.T for a 85 yr old woman, 90 yr old woman. Get my point.

 

[b61mack]

i am open to suggestions, she is 61, health not that good. but hopefully she will be around another 20 yrs. They just sent her a letter saying her insurance cost will not go up to 115, this year but it will be reviewed again next year.
- - - - - - - - - - - - - - - - - -
As you said it really comes down to the agent. I am no saint, but I could not sleep at night knowing i screwed someone, just to make a few bucks. I do believe in karma.

 

[WinoBlues]

i am open to suggestions, she is 61, health not that good. but hopefully she will be around another 20 yrs. They just sent her a letter saying her insurance cost will not go up to 115, this year but it will be reviewed again next year.
- - - - - - - - - - - - - - - - - -
As you said it really comes down to the agent. I am no saint, but I could not sleep at night knowing i screwed someone, just to make a few bucks. I do believe in karma.

If she is already getting the increase letter it may be to late. Someone should have reviewed this with her years ago. She needs a good agent. They do not decline overnight.

You said she has $10,000 of SV. Order option inforce illustrations. Example: premium solve lowering the face to say $25,000. To carry to age 100 at guaranteed minimum interest rate. Depending on her health look at FE. Also dumping in the $10,000 into a GUL and doing a premium search. Even with a couple tables it may get her more for less. Also buying paid up addions on a whole life policy.

I would be happy to help.

>>I am no saint, but I could not sleep at night knowing i screwed someone, just to make a few bucks.

Not sure what you are saying here?

 

[jtow]

Like the OP mentioned, I am new to looking at UL's also. Met with a man now age 63 who had a Protective Life policy that is a UL. He bought it 15 years ago as a 15 year term? for $50K death benefit for $15/mo. Just got a notice it is now going to $100/mo next mo. He can't find his policy, on their website he could pull up some info on the policy. Says premiums are now not guaranteed, and will fluctuate until 2018 (20 years into the policy) and then there is no more info. So he doesn't have a clue of what happens then. He has asked for a copy of his policy mailed to him. Any idea what he has or what is going to happen in 2018, does policy just end?

 

[VolAgent]

Get a hold of the policy. Just guessing, but it may have been an early termUL or it may have been a UL that was designed to provide level coverage for 15 years and now is responding to changing interest rates and costs of insurance.

 

[WinoBlues]

May be a termUL policy as VolAgent said. If it is, it is working as designed. He has some ul options built in. He gets an annual report from protective, get that. He will not get a full policy copy. He will get a certificate of insurance

If it is UL and craps out in 15 years he may have forgotten about few payments or loans.

Rewrite him if you can.

Like the OP mentioned, I am new to looking at UL's also. Met with a man now age 63 who had a Protective Life policy that is a UL. He bought it 15 years ago as a 15 year term? for $50K death benefit for $15/mo. Just got a notice it is now going to $100/mo next mo. He can't find his policy, on their website he could pull up some info on the policy. Says premiums are now not guaranteed, and will fluctuate until 2018 (20 years into the policy) and then there is no more info. So he doesn't have a clue of what happens then. He has asked for a copy of his policy mailed to him. Any idea what he has or what is going to happen in 2018, does policy just end?

 

[RBHAGENT]

There is no silver bullet for dealing with UL when trying to sell FE. If you are going to do it properly, it will take some problem solving.

Here are a few things you should really understand before attempting to replace or review:

1) Understand what a UL is and the various types
2) Know how to read the illustration and understand the life of the policy.
3) Know the language...."under funded vs. over funded" and how it impacts the premiums as well as how the premiums can be adjusted.

These are just 3 basics with UL's that I think you should know when out in the field. Its one thing to sell UL's primarily and its another thing to understand the basics when conducting a needs analysis with a client.

For example, if a healthy non tobacco client has a no lapse GUL that pays to age 120 and they are set on autodraft and have never missed a payment.....the face amount is between 5k-25k...you may have a problem finding a SIWL that will beat the rate. The key is making sure you have reviewed the illustration to understand and confirm what the policy is designed to do.


If you aren't familiar with UL's, definitely do some homework...They are great policies and in my opinion can sometime be very good alternatives to FE...but thats just my personal opinion.

 

[agentjhc]

.......................