What is the catch?

[Agent16]

I ran into a policy that the insured has had since 2009, when she was 67 (she is now 76). It is a Principal Universal Life Protector III product which I believe is a GUL. She did not put any money into this policy aside from the premiums she has been paying. She has been paying $88 per month since she got the policy for $50,000 of coverage.I called Principal and verified these details with a customer service rep as well as her supervisor. Both of them also told me that the $88 is guaranteed to provide $50,000 of coverage until she is 121 years old. I asked this several different ways as it didn't add up to me and they assured me that if she pays $88 per month for the rest of her life, she will always have $50,000 of coverage. I can only get a 67 year old about $20,000 of final expense coverage for that premium amount. I understand that GULs don't really build cash value, but it seems very strange to me that the cost of insurance (currently $93) is already above her monthly premium. What am I missing? She has put less than $10,000 into a $50,000 policy and will never have a premium increase despite the COI already being lower than her premium.

 

[billyb]

I would get her an in force illustration and it should show guarantees.

 

[Markthebroker]

How did you call Prudential and ask about a policy that wasn't yours?

Can I call Prudential and call about my neigbor's policy?

 

[goillini52]

How did you call Prudential and ask about a policy that wasn't yours?

Can I call Prudential and call about my neigbor's policy?

Yes.

 

[Markthebroker]

Yes.

So, Goillini52, you can call and ask about any of my financial arrangements, and I can call about any of yours, then. When I call and access your life insurance carrier, I assume you don't mind if I borrow against it to buy a new RV?

 

[goillini52]

So, Goillini52, you can call and ask about any of my financial arrangements, and I can call about any of yours, then. When I call and access your life insurance carrier, I assume you don't mind if I borrow against it to buy a new RV?

Yes Mark, I can call and get your info from the company....with your permission.

No Mark, you can't call and get my info because I won't give you permission (has nothing to do with the size of your head).

I think the OP was with the prospect when he called Prudential.

 

[LostDollar]

Yes Mark, I can call and get your info from the company....with your permission.

No Mark, you can't call and get my info because I won't give you permission (has nothing to do with the size of your head).

I think the OP was with the prospect when he called Prudential.

I thought you were going to say, "Yes you can call Prudential and ask about your neighbor's policy. Just don't expect Prudential to give you any information about it - or even tell you if your neighbor has a policy with them. "

 

[goillini52]

I thought you were going to say, "Yes you can call Prudential and ask about your neighbor's policy. Just don't expect Prudential to give you any information about it - or even tell you if your neighbor has a policy with them. "

I would've LD, but I didn't want to be an AssH0le.

 

[rousemark]

I would've LD, but I didn't want to be an AssH0le.

Since when???

 

[Tahoe Ray]

I ran into a policy that the insured has had since 2009, when she was 67 (she is now 76). It is a Principal Universal Life Protector III product which I believe is a GUL. She did not put any money into this policy aside from the premiums she has been paying. She has been paying $88 per month since she got the policy for $50,000 of coverage.I called Principal and verified these details with a customer service rep as well as her supervisor. Both of them also told me that the $88 is guaranteed to provide $50,000 of coverage until she is 121 years old. I asked this several different ways as it didn't add up to me and they assured me that if she pays $88 per month for the rest of her life, she will always have $50,000 of coverage. I can only get a 67 year old about $20,000 of final expense coverage for that premium amount. I understand that GULs don't really build cash value, but it seems very strange to me that the cost of insurance (currently $93) is already above her monthly premium. What am I missing? She has put less than $10,000 into a $50,000 policy and will never have a premium increase despite the COI already being lower than her premium.

If she was healthy, GUL is going to be much less expensive than an FE product with 4+ tables built in.

COI plays much less of a role in GUL because of the no lapse guarantee rider.

I'm not in a position to check but Principal's GUL is competetive and that pricing doesn't sound too crazy with a favorable health rating.