Term Whole of Life

[WinoBlues]

If you have an "exception to the rule" example, feel free to elaborate.

I have in the past. I do not have time to pull them up at the moment. But may later.

a Couple of ways would be >>>

set them up to be properly cash flowed to ensure the guarantee is not lost. I am a big fan of making them paid-up by retirement.

I also agree with you that they can be a great product. Also short pays make them even better in the correct application.

 

[Life Hawk]

I think life insurance pricing is so heavily regulated that the likelihood of a company NOT making a profit on a life policy is very low. First Colony (now Genworth) did not go from A++ to B- because they were losing money on life insurance.

I think that while companies need to make money, agents should be much more concerned that their clients save money. There are enough folks running life insurance companies, and making sure they are profitable, that they don't need help from the agent community. On the flip side, who is looking out for the best interests of the consumer?

Have you ever had a company go into receivership on you? I have.

 

[DHK]

I doubt it was product design... but usually from taking on inappropriate risks in the general investment account.

 

[Newby]

Apologies but what is GUL?

Guaranteed Universal Life or No Lapse Guaranteed Universal Life.

 

[Robert Barney]

Have you ever had a company go into receivership on you? I have.

Which company was that, and why do you imagine they ran into financial difficulties?

I used the example of First Colony/Genworth, which got into is much trouble as I imagine any company can (going from A++ to B-) but that was the result of going heavy into the Long Term Care market which was a sucker game for life insurance companies. I'm getting ready to buy a Medicare supplement in the next month or two (yep, hitting 65) and I will not consider any health insurance company that is in Long Term Care. Health Insurance is a big enough mess, but Long Term Care is a bottomless pit.

By contrast, life insurance products are a product that is virtually goof proof. Anyone disagree?

 

[Life Hawk]

Which company was that, and why do you imagine they ran into financial difficulties?

I used the example of First Colony/Genworth, which got into is much trouble as I imagine any company can (going from A++ to B-) but that was the result of going heavy into the Long Term Care market which was a sucker game for life insurance companies. I'm getting ready to buy a Medicare supplement in the next month or two (yep, hitting 65) and I will not consider any health insurance company that is in Long Term Care. Health Insurance is a big enough mess, but Long Term Care is a bottomless pit.

By contrast, life insurance products are a product that is virtually goof proof. Anyone disagree?

A little company known as Shenandoah Life... good company... poor bean counters.

 

[Robert Barney]

A little company known as Shenandoah Life... good company... poor bean counters.

Actuaries?

According to this article:

Shenandoah Life Insurance Co. is rebuilding its foundation

it says:

More than five years after devastating investment losses during the recession, the company hasn’t resumed normal operations.​

That doesn't sound like someone not counting the beans properly, it sounds like someone was making bad investments with the money in hand.

Perhaps you can set me straight.

 

[Life Hawk]

Actuaries?

According to this article:

Shenandoah Life Insurance Co. is rebuilding its foundation

it says:

More than five years after devastating investment losses during the recession, the company hasn’t resumed normal operations.​

That doesn't sound like someone not counting the beans properly, it sounds like someone was making bad investments with the money in hand.

Perhaps you can set me straight.

All of that falls under "bean counting" by my definition...

 

[Robert Barney]

All of that falls under "bean counting" by my definition...

So you are suggesting that the actuaries who price products are the same people in charge of investing the life insurance company's reserves?

 

[MosesNewmanNAAIP]

I am learning so much from this forum. btw, N.A.A.I.P. wishes all agents the best in using our free quote engines for life insurance agents.