Term vs GUL

[InviewFinancial]

Hello.

I would like to secure some guaranteed funds for my family but want to make sure GUL is the best policy for me for my needs.

I am at the moment 27 year.
3 years ago I bought 30 Yr Term (1 mil ) with Prudential which used to cost estimate $700 /year
so Total cost for 30 year would have been $21000.
Last year, because i was diagnosed with Rheumatoid Arthritis, we asked my agent for some permanent recommendation.

He recommended converting to GUL so we did.
$500K was converted to Prudential GUL which cost $2069 (year) . i did request him that i want to be paid up in 20 year. so total cost of this will be $41380. and return will be $1 mil.. (the policy is up to 120 year or something) . and ofcourse i also didnt care about cash value. because true WHOLE life was same cost for 1/10 of the face value.

Q1) does this GUL Look real? as long as i make my payments for next 20 years on time, if i die any time from now till the year 120.. my family will get paid 1mil.

Q2) are there any new policies i can apply even after being diagnosed with Rheumatoid Arthritis ?

Q3) i am thinking of converting the other $500k term also to GUL. the agent has quotes the $2098 for 20 pay.
and $1498 if i want to pay for rest of my life. what i am curious is .. the 20 pay is only going to cost me close to $41000 ... (return is $500K) but if i choose to pay for rest of my life it will cost me double or triple.. (ie.. at the age of 95 i would have paid 105K)

Q4) basically i want to have 1 mil policy for rest of my life, but want to pay the least for it.. what is best policy for me.

q5) i have also thought about having a whole life policy with cash value, and that policy pay my GUL or other policy after 20 year. so i dont have to worry about making payments.

Thanks
Dipan

 

[InviewFinancial]

Q1)i meant get paid 500K. not 1 mil.

 

[InviewFinancial]

Here are the illustrations

 

[Tahoe Ray]

If you have RA now but didn't when you first bought your Pru term policy, it's highly unlikely that you'll find a better deal than just converting your term policy to a GUL w/ Pru.

Without running quotes, those numbers don't seem too far off to me.

The severity of your RA is going to dictate whether you have "new" policy options available to you (at least from a cost/benefit standpoint) for some of your other questions.

Q3 isn't really a question but your understanding is correct.

GUL is some of the best "bang for the buck" permanent coverage that you can get.

I hope that this helps.

 

[InviewFinancial]

If you have RA now but didn't when you first bought your Pru term policy, it's highly unlikely that you'll find a better deal than just converting your term policy to a GUL w/ Pru.

Without running quotes, those numbers don't seem too far off to me.

The severity of your RA is going to dictate whether you have "new" policy options available to you (at least from a cost/benefit standpoint) for some of your other questions.

Q3 isn't really a question but your understanding is correct.

GUL is some of the best "bang for the buck" permanent coverage that you can get.

I hope that this helps.

Thanks.
If i really dont care about cash value, and i want to get the best for my money,, taking 20 or 30 pay vs life long pay? is it worth it? if my financials condition is good?

 

[Tahoe Ray]

Thanks.
If i really dont care about cash value, and i want to get the best for my money,, taking 20 or 30 pay vs life long pay? is it worth it? if my financials condition is good?

That's personal preference. The Pru GUL illustrations can be run with an IRR Death Benefit report (essentially showing you what you'd have to earn tax-free if you were to just divert the premiums to some type of investment vehicle).

You'll note that if you die in the early years, the life pay is better. If you're dying closer to or past life expectancy, the short pay scenarios are normally stronger.

Have your agent run you a few scenarios to see what works best for you.