Switching from Metlife Paid at 98 Policy

[pfg1]

Definitely look at it closely.

Here is another thought. How much does the annual death benefit increase each year if she makes the premium payment? I would think by now it should be fairly substantial with each premium payment.

Assuming you and your sister are 50/50 on beneficiary and in the position to do so... you guys could each pay half the premium for your mom going forward. Your $3000/yr would increase by $X amount - say its $5k-$6k each year... you just doubled your money tax free (paid out at some point in the future). Keep in mind, the policy will continue to become more efficient each year... so 10yrs from now, it might be that you tripled your (eventual) money when you pay the annual premium. Just an option. Not many places you can put in $3k/yr and get a guaranteed gain of double with no risk.

Obviously I don't know the exact numbers... hopefully you get my point.

 

[BeeSelective]

If you change to another policy, you are guaranteed to have less cash value for a number of years, if not always.

A MetLife policy bought in the 90's should have an annual dividend to pay the annual premium....unless something is missing here.

I have a prudential policy bought years ago and the annual premium exceeds the annual premium. Other than possibly term, I don't
Know if prudential has any policy today that I'd buy.

I have 3 wl policies with prudential. (All with significant dividends)
3 variable ul policies, wife and children
1 variable wl policy on my daughter

I was agent w/prudential for 27 years

 

[Tahoe Ray]

Other than possibly term, I don't
Know if prudential has any policy today that I'd buy.

In NY, Pru has one if the most competitive single pay GULs on the market...this is likely what is being proposed to OP.

 

[BeeSelective]

In NY, Pru has one if the most competitive single pay GULs on the market...this is likely what is being proposed to OP.

I know nothing about Pru in NY. I do know that if someone has a par contract with Met from the 90's there will be a significant loss of cash for a number of years, possibly forever, in the event of a 1035 exchange.

The CV growth each year plus the dividend annually in the 90's policy should outpace the new ul policy.

Now if interest rates go to 15%, then maybe another story. Then we can go back to the 80's with the old argument on ul VS par wl using portfolio rates, rather than current rates.

There was no magic then, there is none now.

The 90's Met policy should be able to be arranged to meet the needs of the client. Of course there will be no commission paid, so it is in the interest of the agent to replace it.

Then again, Pru might have a super contract.