Waiver of Premium

Discussion in 'General Insurance Agent Discussions' started by wheels15, Sep 7, 2010.

  1. wheels15
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    wheels15 New Member

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    i became a paraplegic in 1985 which at that time my policy was on premium waiver, which means prudential pays my premiums. also, i was to recieve a new policy every three years, also paid by prudential. the face value of each i believe to be 10,000.00 . they are limited pay whole life and the first one is classified as classic 85 life. can some one tell me what either of those two mean, and is there something else i should be doing with my policies, because i hear of people changing there polices, or upgrading to a better one. im really not to educated on life insurance although lately i have been reading up on it. thank you for your help
     
  2. BNTRS
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    BNTRS Well-Known Member

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    Think about it this way. Is there a company out there that is going to beat your current deal?

    You currently have a few policies from Prudential for which you pay nothing out of pocket. Based on your disability your not likely going to recover and so there will never be an out of pocket cost on those policies for you.

    So is there a company that will issue policies on your life and not require that you pay premiums? Let me know if you find one.

    Is there a company that will issue policies and give you money back? This would be the only deal potentially better than your deal with Pru at the moment. Again, let me know if you find one.

    Keep in mind that those whole life policies from Pru will accumulate cash value and earn dividends just like any other whole life policies issued by Pru at that time. Only difference is, a lot of the other policies holders have to make a payment to Prudential to keep there deal in place.
     
  3. WinoBlues
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    WinoBlues Well-Known Member

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    My suggestion is find an agent here in California that would be willing to sit with you. Read the policy and order any in force illustrations they fell will show you the future. You can ask the questions today, however in a couple years you will be asking them again. Better if you have printed material organized in a file with phone numbers to Pru and questions to ask.

    Most of this can be done by phone. Also remember that the agent will not be getting paid and will be using his own time and resources so be patient.

    Edit: On the upgrading, That maybe a conversion of a term policy done while on Waiver. Or a change of the dividend option.




     
    Last edited: Sep 7, 2010
  4. GreenSky
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    GreenSky Well-Known Member

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    So Wino. You don't list a state under your avatar.

    Where are you located and can you help this guy?

    Rick
     
  5. WinoBlues
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    WinoBlues Well-Known Member

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    :D Nice Rick. Why yes, I am in California. And yes, I could help him. Happy to do it.
     
  6. wheels15
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    wheels15 New Member

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    I Am From Santa Rosa, Ca.
     
  7. WinoBlues
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    WinoBlues Well-Known Member

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    Sonoma County, I like wine!

    If you like, email me at [email protected] with your email and phone number. I believe that I can help you get the info you want.
     
  8. DHK
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    DHK Well-Known Member

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    BNTRS hit the nail on the head.

    1. You're on premium waiver on your current policies. This also means that it would be very difficult for you to qualify for a NEW policy based on your current health situation.

    2. You are now 25 years OLDER than you were when the policies were first issued. Premiums increase on newly issued policies.

    3. MOST people may "upgrade" their policies over time, but that doesn't mean that YOU should. Most other people are still insurable and may still qualify for better policies.

    4. New contestability periods, new suicide clauses, etc., etc., etc.

    5. DO NOT REPLACE YOUR CURRENT POLICIES UNLESS YOUR REPLACEMENT POLICIES WILL BE PAID FOR BY THE NEW INSURER.
     
  9. WinoBlues
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    WinoBlues Well-Known Member

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    I agree he should not replace what he has. I don't think he means that. I think he really does not know what he has.

    Sounds like he may have had a guaranteed purchase option of some sort. There is a possibility that he could do a dividend option change that may be better for him. Paid up additions or a small income. Mostly he should know what he has and if there are any options he should look at.

    My guess is since he is on Waiver he has been at the bottom of the new agents call list.

    Maybe a Bay Area agent will step up.

     
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