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No. That is what would have charged against his cash values. Had he had any. It is a declining charge.
Universal Life Replacment Tips
- Thread starter nfl72
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No. That is what would have charged against his cash values. Had he had any. It is a declining charge.
There's no way they can make him pay that. If the cash value isn't in there for them to take, then there's nothing for them to get. If he cancels the policy and stops the bank draft, then they can't make him pay diddly-squat.
Now, if he started the policy off with some kind of lump sum payment, and that reflects in the cash value...yep they just might take their $1500 if there's that much in there.
- 1,011
I just replaced a Western Southern UL with a no lapse guarantee
Had the client call them, put it on speaker phone.. coached her, wrote down the questions for her to ask
When she found out the possibility of missing a pmt and what that could do to her policy she about freaked out and was pissed the agent that sold that to here 2 years ago didnt explain that if shes one day late on her pmt... boom.. And it's widely known the insurance company will not contact the insured when a missed pmt is not received-
She paying 129 a month for 50k UL NLG with no CV
Got her 50k of WL ...35k and 15k through 2 separate companies.. her cost?
$163 per month
She had no problem paying the extra $30 for piece of mind and obtaining a true WL policy with CV
Big pay day for me-....
Had the client call them, put it on speaker phone.. coached her, wrote down the questions for her to ask
When she found out the possibility of missing a pmt and what that could do to her policy she about freaked out and was pissed the agent that sold that to here 2 years ago didnt explain that if shes one day late on her pmt... boom.. And it's widely known the insurance company will not contact the insured when a missed pmt is not received-
She paying 129 a month for 50k UL NLG with no CV
Got her 50k of WL ...35k and 15k through 2 separate companies.. her cost?
$163 per month
She had no problem paying the extra $30 for piece of mind and obtaining a true WL policy with CV
Big pay day for me-....
To make a fair comparison I wonder what an illustration would have looked like on the W/S UL if she had increased her prem the additional $ 34 mo...? I realize that you aren't going to find that out, but it is a valid questiion for an apples to apples comparison. I guess we will never know... unless the W/S agent came back into the picture.
- 1,011
Even at that- it would come close to touching a true WL
To many benefits in a true WL policy
Whole lot of ugly in those NLG- Couple things I made a point to the client and which helped me make the replacement
1) There's no "living" benefit in her current policy
2) No flexibility- She wouldn't be able switch to a lower competitive company of the same face amount without losing her entire investment.. I made the point to her that when you purchase these policies- You're in a point of no return. If these premiums drop in the near future- High surrender charge and little to no cash value would not make it attractive to switch- even if her health permits it...
It's a gimmick product and a very dangerous one at that
I would imagine if you can find the old UL policies that exploded in the last 10 years you can make a very nice living. For those who have experience like Wino, it would be a great advantage over other agents.
I haven't ran into a UL policy yet here in Fl, but I am sure I will eventually. I would have loved to find the exploded ones or any UL policy for that matter.
Even GUL is a better solution and if WL fits the bill then even better.
TPA-- very nice way of cementing the idea to the prospect and very nice catch.
I haven't ran into a UL policy yet here in Fl, but I am sure I will eventually. I would have loved to find the exploded ones or any UL policy for that matter.
Even GUL is a better solution and if WL fits the bill then even better.
TPA-- very nice way of cementing the idea to the prospect and very nice catch.
Comparing NLG UL's to "true whole life" is comparing apples to oranges. Personally, I would not have put my name on that replacement. UL's with NLG are not a gimmick product, nor are they dangerous if illustrated and explained correctly.
Whole life is a great product too. By the sounds of it though, it seems you put her in 2 "FE" policies ($35k & $15k) which have a table rating built in. She qualified for the WS UL 2 years ago, why wouldn't she qualify for fully underwritten now?
Whole life is a great product too. By the sounds of it though, it seems you put her in 2 "FE" policies ($35k & $15k) which have a table rating built in. She qualified for the WS UL 2 years ago, why wouldn't she qualify for fully underwritten now?
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Sorry to hear that
Not sure what that's suppose to mean- Telling someone they can be killed skydiving doesn't making skydiving any less dangerous.
If you can't see why a NLG product is dangerous to your clients then there's nothing more I need to say about it
Dont forget to bring up that a WL also has a nice paid up reduced option if down the road he has financial problems and can longer afford his premiums.. something a junk NLG UL can't offer
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- 26,147
Times two. I would love to be the next guy in.
I do not know the Western Southern and have replaced more than a couple.
All those things _may_ be true of the WS product. However, nowhere near all GULs. Recently, help one of my clients, age 82. Reduce her payments from $750 to $430. Guaranteed to 105. She has been late and missed payments a few times. Then last week she decided to take all but a few dollars from her CV, against my written advice. Guaranteed to age 102+-. @ the same $430mo.
By the way. No need to coach or write down questions. Just have the owner give the cs person permission to talk to you. Make sure you order an inforce for the replacement file. CYA
There are a lot of ULs that needs to be replaced. But not all replacements are in the best interest of the insured.
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I write as many WL policies or more than GULs. But I do know both pretty well. I am a big believer in short paying polices. I have personally written GULs that are 20 and 10 pays at the same cost a SIWL policy would be at full pay.
Your experience may be different than mine.
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