SPWL Age 31

[Robert Barney]

Goes to show why taking advice from a non-agent is dangerous. Major differences in risk to the consumer between the two products.

OK, so Sagicor is gone on Friday. Let's look at Penn Mutual. Single premium for $500,000 of $63,132. So what is the premium for the most competitive SPWL that is NOT a no lapse GUL. Can we actually get someone to post a number.

NOTE: When I buy stuff I look at the price, I don't buy "concepts" in the absence of price.

 

[pfg1]

OK, so Sagicor is gone on Friday. Let's look at Penn Mutual. Single premium for $500,000 of $63,132. So what is the premium for the most competitive SPWL that is NOT a no lapse GUL. Can we actually get someone to post a number.

NOTE: When I buy stuff I look at the price, I don't buy "concepts" in the absence of price.

Penn is doing away with single premium design also in their WL at the end of Jan.

I don't know who is the most competitive SPWL, but MTL is par WL and pretty good in that space. (not many companies offer a true SPWL anymore, especially PAR)

31 male non-tobacco is $96,990 for $500k
By age 80 the DB is $685k, and CSV is $490k. You could pull out your deposit $ and still have more than $500k death benefit, that continues to grow slowly each year after that.

IMO, this would typically be a terrible idea for a 31yo in most cases... but you asked for the numbers. The lost opportunity cost on this would be massive over those 50yrs even with a modest investment RoR.

 

[Robert Barney]

Penn is doing away with single premium design also in their WL at the end of Jan.

I don't know who is the most competitive SPWL, but MTL is par WL and pretty good in that space. (not many companies offer a true SPWL anymore, especially PAR)

31 male non-tobacco is $96,990 for $500k
By age 80 the DB is $685k, and CSV is $490k. You could pull out your deposit $ and still have more than $500k death benefit, that continues to grow slowly each year after that.

IMO, this would typically be a terrible idea for a 31yo in most cases... but you asked for the numbers. The lost opportunity cost on this would be massive over those 50yrs even with a modest investment RoR.

$96,990 - 63,132 = $33,858

So invest 33,858 for (80-31 = 49) years and what would it grow to??

What rate of return should I expect for the next 49 years?

You would have $500,000 fully guaranteed (with whatever CSV) and whatever $33,858 grows to. Better, you could take and use the $33,858, and whatever it grew to, and still have a FULLY guaranteed $500,000 death benefit.

But what do I know. I don't have a license that I could get after a 3 hour multiple guess exam requiring a 70% pass.

 

[Tahoe Ray]

$96,990 - 63,132 = $33,858

So invest 33,858 for (80-31 = 49) years and what would it grow to??

But what do I know. I don't have a license that I could get after a 3 hour multiple guess exam requiring a 70% pass.

To give the "investing" advice you need a lot more than that.

Plus, every agent with experience knows that the exam isn't where suitability/viability of recommendations comes from.

It can be dangerous giving advice on topics that one knows nothing about.

 

[Robert Barney]

To give the "investing" advice you need a lot more than that.

Plus, every agent with experience knows that the exam isn't where suitability/viability of recommendations comes from.

It can be dangerous giving advice on topics that one knows nothing about.

What rate of return should an investor expect over the next 49 years (minimum)? You're an investment advisor and you can't answer that question?

Pick a number, any number. 2% 4%, 6%, 8% what do you think?

I used to do seminars for groups of life agents years ago, and when I asked for long term investment returns they'd shout out 12% and 15%. I would then argue for a conservative return, and reduce it to 8%. Who was more correct?

 

[Robert Barney]

On another note, I once sold a large single premium whole life policy to a buyer for his infant granddaughter. It was a clever investment. Care to ask me why?

 

[Tahoe Ray]

What rate of return should an investor expect over the next 49 years (minimum)? You're an investment advisor and you can't answer that question?

Pick a number, any number. 2% 4%, 6%, 8% what do you think?

I used to do seminars for groups of life agents years ago, and when I asked for long term investment returns they'd shout out 12% and 15%. I would then argue for a conservative return, and reduce it to 8%. Who was more correct?

I get paid for my advice.

 

[Robert Barney]

I get paid for my advice.

Really, so when you speak to a prospect for 30 minutes, and they don't buy anything from you, you get paid?

 

[Tahoe Ray]

Really, so when you speak to a prospect for 30 minutes, and they don't buy anything from you, you get paid?

Believe it or not, you can charge for your time without selling anything.

And you're not a prospect.

 

[DHK]

Number crunching and suitability of product debate in the absence of the client's objectives... is just circle-jerking.

Until I know what the client wants to achieve, I can't propose or compare/contrast anything.