Whole Life Performance

Dec 7, 2015

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  1. heynow5
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    If you've been selling whole life awhile, which carriers have exceded expectation or disappointed? Meaning the cash value was way better or worse than the original illustration.
     
    heynow5, Dec 7, 2015
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Marvin Feldman said this in an MDRT presentation:

    "Remember the rule 1 to 100: In one year, 100% of your illustrations will be wrong. Help them remember WHY they bought... not WHAT they bought."

    His father, the famous Ben Feldman said something like this:

    "Most dividend paying policies are about the same. Illustrations are estimates. Different companies have different estimates."

    Audio From Claude Whitacre

    Use the illustration to sell the CONCEPT... not the performance. Dividend scales will always fluctuate - either better or worse than illustrated.
     
    DHK, Dec 7, 2015
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  3. heynow5
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    Thanks. But was just wondering if anyone had noticed one company being more consistently above/below their illustrations
     
    heynow5, Dec 7, 2015
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  4. rousemark
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    rousemark Still Here!

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    Sell Non par and your illustration projections will be spot on!..,:)
     
  5. scottstreet
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    True but you will generally be selling SI products at table 4 prices...but hey at least you'll get paid right away...
     
  6. rousemark
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    The majority of Non Par sold is not table rated SI products..
     
  7. pfg1
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    What you are asking for actually means nothing. Since dividends vary and are based on so many factors, how the illustration looks compared to actual performance is probably completely dependent on when the illustration was done. I have illustrations from 5-6yrs ago from a number of good companies that show better performance projected because interest rate environment was much better, and divs were higher when the illustration was run.

    If you had a policy from a long time ago when divs were high, right now it would look horrible. We are in one of the lowest div rate environments ever right now. On the flip side, illustrations done today will at some point likely be much lower than actual - due to where we are now.

    The great thing about Par WL... the guaranteed column always looks good, and you know the policy will do better.
     
    pfg1, Dec 9, 2015
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  8. scottstreet
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    Rouse, what major carrier is selling much non par WL?
    The carriers who sell a lot appear to be Simplified Issue FE specialist and while they are not table rated in the fully underwritten sense-the pricing relative to fully underwritten carriers is table 4-8.
     
  9. rousemark
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    Depends on you definition of "major carrier". The big mutual like NYL sell a very small percentage of the WL insurance that is sold. The vast majority of companies large and small do not sell par products. As far as I know AIG does not sell par nor do they sell SIWL but they sell a considerable amount of WL.

    But, you missed the point of my original post. It was meant tongue in cheek. The OP was concerned about the possibility of the projections on WL being wrong. I pointed out that the only way to be sure that your projections will be accurate is to write non-par simply because all values are contractually guaranteed.

    Just curious, do you know why insurance dividends are not taxable in the same manner as stock dividends?
     
  10. scottstreet
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    I'd be happy to do the mea culpa on missing the tongue and cheek nature of comment until your last 'question"

    It's kind of cute, so you imply that the iRS classifying Par WL divs as a return of "excess premium" makes the case for non-par? Well I'd simply reply that there's a reason that the FE guys choose 0-40K as the income filter on the direct mail they drop....and it aint because they're selling to brilliant investors with better ROI options. :D
     
    Last edited: Dec 9, 2015
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