Whole life premium increase

[senior-advisor-indiana]

I know that quite a few companies offer ULs that keep the same premium to age 100. An example is Life Investors. The UL is still flexible premium but for the client it offers a premium and death benefit that are guaranteed to age 100. As the client ages, the cash value is used to offset the costs.

Is that gauranteed?

 

[senior-advisor-indiana]

Sorry I am an ***. I just re read your post.

 

[Newby]

The New York Life whole-life policy that AARP sells says in the small print that premiums are not guaranteed against increases of the entire class.

 

[angwagner1974]

The New York Life whole-life policy that AARP sells says in the small print that premiums are not guaranteed against increases of the entire class.

right, people think that AARP is better for them and it comes out cheaper or very close a majority of the time. The problem is that they do not guarantee that the rates will not increase. That is usually enough to overcome their product.

 

[Joe Moore]

21 years ago, when I was a rookie in the insurance business
we sold a payroll deduction "Interest Sensitive Whole-Life", which sounded like a decent deal from the surface.
If you read the fine print, the premiums were not guaranteed.

Joe Moore
National Senior Benefits
Asurco Insurance Marketing
PO Box 1954
Morristown, TN 37816
1-800-226-1004
[email protected]
www.asurco.com

 

[xrac]

If there is a premium increase on existing policy holders it is not a whole life policy but some type of hybird product mixing whole life and UL.

Here is what WordNet a lexical database for the English language from Princeton University says:

whole life insurance, ordinary life insurance, straight life insurance (insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured).

WordNet Search - 3.0

 

[somarco]

If there is a premium increase on existing policy holders it is not a whole life policy but some type of hybird product mixing whole life and UL.

Premium increases have nothing to do with it.

Either the product is designed to expire at a set point, as in term insurance, or it is designed to last your whole life.

Whole life is a phrase that was used before ISWL, ISUL, UL, VUL, VL and all the other combinations of permanent plans that exist today. It is generic as Q-tip or Kleenex.

(Almost) no one asks for a cotton swab or a tissue. They ask for a brand. They pour coffee in a Thermos, not a vacuum jug.

 

[bluemarlin08]

Whole life policies that are showing increasing premiums are typically policies that were designed with part whole life and part term insurance. The concept was that projected dividends would purchase paid up additions and replace the term insurance. The problem began when dividend projections were less than projected, therefor causing the policy to pay higher and higher costs for the term portion. This problem snowballs and eventually requires the policyholder to pay higher premiums. When one runs into an older WL policy with a term blend, in the majority of cases the policyholder is unaware of the potential time bomb they own.

 

[Todd King]

For those who don't know, this is called an Adjustable Whole Life policy.

 

[Newby]

Any policy that has a cash value component is whole-life.

If there is never any cash value, it is term.