SPWL Age 31

[Robert Barney]

So NO ONE wants to guesstimate investment returns for the mid to long term. And yet I know that EVERY agent who goes into a sale does that when they sell investment products. So much for transparency. It's also why no one ever had to apologize for selling a product that is FULLY guaranteed.

 

[Allen Trent]

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.

here is a $500k SPWL on 35 year old with 75% of the funds directly in the PUAR rider for maximum long term accessibility (normally a great feature for over age 60, but likely a non-issue for 35 year old because of MEC, etc). Great product in senior marketplace, but only sold by single state captive multi-line carrier. I didnt originally add it because it isnt helpful to the OP original question. Only adding now because you asked for a sample

$500k SPWL female age 31. $19.4k in base policy & $58.2k in PUAR for total of $77.6k into $500k initial face.

Looks OK overall, but not really designed for age 31 target market unless 1035 exchanging out of a crashing UL/VUL etc

 

[Allen Trent]

no one ever had to apologize for selling a product that is FULLY guaranteed.

while your premise is solid, there have indeed been numerous apologies over the years & even lawsuits on products that were Fully guaranteed. Mainly those sold where the carrier went into receivership or more often when the carrier was bought out & the new carrier provides horrendous customer service. Dealing with a bankrupt carrier or a horrible customer service carrier that regrets the policies they bought can have consequences to consumers

 

[Robert Barney]

while your premise is solid, there have indeed been numerous apologies over the years & even lawsuits on products that were Fully guaranteed. Mainly those sold where the carrier went into receivership or more often when the carrier was bought out & the new carrier provides horrendous customer service. Dealing with a bankrupt carrier or a horrible customer service carrier that regrets the policies they bought can have consequences to consumers

So if you buy a low cost policy from an insurance company you will end up in a mess because that carrier will go bankrupt and the company that takes over the old company's policies will treat you like crap. Does that sum it up?

 

[Robert Barney]

here is a $500k SPWL on 35 year old with 75% of the funds directly in the PUAR rider for maximum long term accessibility (normally a great feature for over age 60, but likely a non-issue for 35 year old because of MEC, etc). Great product in senior marketplace, but only sold by single state captive multi-line carrier. I didnt originally add it because it isnt helpful to the OP original question. Only adding now because you asked for a sample

$500k SPWL female age 31. $19.4k in base policy & $58.2k in PUAR for total of $77.6k into $500k initial face.

Looks OK overall, but not really designed for age 31 target market unless 1035 exchanging out of a crashing UL/VUL etc

View attachment 6692

So we went from talking about a male to a female. Any reason for that?

 

[Allen Trent]

So if you buy a low cost policy from an insurance company you will end up in a mess because that carrier will go bankrupt and the company that takes over the old company's policies will treat you like crap. Does that sum it up?

No, I am just saying it is more accurate to say it is rare for any apologies for a fully guaranteed product not that no one has ever had to apologize

 

[Allen Trent]

So we went from talking about a male to a female. Any reason for that?

View attachment 6693

It is 2021, gender is fluid........just kidding. Oversight on my part. I didn't see gender in the OP, so I left default at female. I should have noticed that in later comments, but I missed that

 

[Tahoe Ray]

It is 2021, gender is fluid........just kidding. Oversight on my part. I didn't see gender in the OP, so I left default at female. I should have noticed that in later comments, but I missed that

Don't bother, Allen.

Just neglect the fact that "your client" has somewhere between 300k and 570k in CV in her mid 70s that they could use for other purposes.

Objectives never change and there is never a need for flexibility in a financial plan.

I'm also sure that this company has a terrible balance sheet and will be out of business soon.

Humor me, what would typical street agent comp be on the design that you ran?

 

[Allen Trent]

Don't bother, Allen.

Just neglect the fact that "your client" has somewhere between 300k and 570k in CV in her mid 70s that they could use for other purposes.

Objectives never change and there is never a need for flexibility in a financial plan.

I'm also sure that this company has a terrible balance sheet and will be out of business soon.

Humor me, what would typical street agent comp be on the design that you ran?

A max funded situation like this would pay similar to a MYGA at 3%, but the agents then have lucrative bonus's on their PC renewals that could add another 1-5% on all their PC renewals for .

 

[Allen Trent]

on't bother, Allen.

Just neglect the fact that "your client" has somewhere between 300k and 570k in CV in her mid 70s that they could use for other purposes.

Objectives never change and there is never a need for flexibility in a financial plan.

Agree. while I have no issues with single deposit GUL & own some myself, the majority of Seniors 60+ years old that I have spoken to over the years choose the policy building CV when given a choice between the SPWL or the SUL. I dont know why, but I am assuming what helped them to save that safe money nest egg in places like a bank CD, they cant bring themselves to knowingly watch a lump sum evaporate even if the corresponding place they invested the difference grows to similar or higher levels.

For a very conservative senior, a SUL along with a decent MYGA (if there are any currently) or an FIA or RILA or Municipal bonds, CD can work very well too. But keep in mind, the SUL carriers know the math that long term, many SUL policies will lapse or surrender when an elderly person forgets why they originally purchased it, has an agent replace it, needs to drain the cash for unforseen issues.

On a Spreadsheet, SUL for sure is the best play. In real life, it is a toss up as we cannot predict the future or the clients decisions/circumstances that will be made 20-40 years down the road