Term vs GUL vs IUL vs Whole life

Feb 8, 2019

  1. pfg1
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    pfg1 Guru

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    No, once you pay 20yrs (if it was designed as a 20pay) you are done. And contractually the policy will remain in force until whatever age it was designed to. You do not have to pay anymore after the funding period.

    If you are planning to buy a GUL, converting the current policy is probably gonna be the best given current health.
     
    pfg1, Feb 11, 2019 at 3:04 PM
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  2. InviewFinancial
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    Thanks.
    i also wanted to note that my husband also has 1 mil 30 yr term. and he plans to convert as well.
    Q1 )what i would like to know is,,, are there any benefits/disadvantage of converting GUL vs IUL?

    Q2) can i also have guaranteed 20 or 30 pay IUL policy?

    Thanks
     
  3. pfg1
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    They are very different products. GUL is for DB protection, thats really it. GUL will limit your DB to what it is. IUL is used for DB or CV growth or both. Can also be used to provide tax advantaged distributions for supplemental retirement income. An IUL that is set to increasing DB will grow the DB substantially over time, assuming its designed and funded properly.

    IUL cannot be fully guaranteed, but can have a no lapse guarantee for x number of years (say 20 for example). They key with IUL, if you plan to use it - it must be designed and funded properly. If you overfund it and don't overloan it, you should be good to go. But it differs a good bit from a whole life which actually provides guarantees and can be paid up.
     
    pfg1, Feb 11, 2019 at 4:45 PM
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  4. InviewFinancial
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    Thanks
     
  5. InviewFinancial
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    So here is what i have got from both illustration i have from my agent.

    If i convert 500K to GUL, then it will cost me close to $42K ( this is it. simple math. pay 42K and get 500K in return)

    but if i convert 500K to 20 pay IUL , it will be close to $97K for the same face value.
    The policy lists 3 scenarios.

    1) Guaranteed Results Based on Plus 100 Account 0.00% and Maximum Charges

    2) Non-Guaranteed Results Based on Alternate Plus 100 Account 4.60% @ and Current Charges

    3) Non-Guaranteed Results Based on Plus 100 Account 5.89%@ and Current Charges

    Here are few things i noticed and have questions.

    1) All 3 options show no lapse for 120yr . am i reading this correctly from the illustration?

    2) Also in IUL the death benefit is increasing in the two non-guaranteed scenarios. this could be plus for me if assuming new policy of 500K GUL with RA patients cost 2 or 3 times of current policy cost) .

    So is it possible to findout what can a new policy cost for people with RA before i convert.?
    any recommendation on companies who provide insurance to patients with RA.?

    3) if i were to choose IUL vs GUL , am i actually getting more death benefit without going through medical. based on illustration for IUL death benefit at age 75...

    Scenario 1) 500K (surrender value = 0)
    Scenario 2) 616K (surrender value = 385K)
    Scenario 3) 1 mil.... (surrender value = 647K)

    These are just my thoughts . i know some one more experienced needs to guide me through this.
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  6. Allen Trent
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    without being a licensed insurance counselor (LIC) in your state, it could be illegal for others to give you specific advice on a policy they are not the writing agent on and not an agent for that carrier. You may need to seek out an LIC if you are looking for unbiased advice if you don't feel comfortable with the explanation you are getting from your current agent on the policies involved.
     
  7. InviewFinancial
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    Thanks.
     
  8. jcorr
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    Can you give some examples about which states it's illegal to give specific advice about other carriers policies?
     
    jcorr, Feb 15, 2019 at 10:37 PM
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  9. rousemark
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    Nn insuance agents can give all the advice they want...They just can't sell the product. Insurance agents are not prevented from giving advice about other carriers products.. Agents do it all the time (and are required to in some jurisdictions) in replacement situations...
     
    rousemark, Feb 16, 2019 at 2:09 PM
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  10. Allen Trent
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    The problem about giving advice about another carriers product is that specific needed details may not be able to be obtained by an agent. IE' giving a client specific advice on a clients conversion privilege might be able to say yes or no by seeing if the conversion expiration has went past or not. But telling the client what products the carrier might allow the term to be converted to may not be accessible to the agent attempting to give advice or audit a policies details such as MEC status, cost basis, etc. General advice might be appropriate but specific advice might be outside of scope & may be an item not covered by E&O if giving advice requires life insurance counselor licensing
     
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