Whole life vs Universal life vs VUL

Aug 4, 2007

  1. loginname
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    loginname Expert

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    Let's start a discussion about whole life, universal life and variable universal life. Do you always use one kind in situations that call for permanent insurance? What do you consider to be the advantages and disadvantages of each? What companies do you like for each product?
     
  2. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    I like whole life because it pays your beneficiary when you die. I use it whole life when people are expected to die sometime that isn't in the near future. Works great!
     
  3. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    I don't write a lot of WL anymore. VUL with guaranteed death benefits are what I write most (other than term).

    Will the bum hit another tonight? Bud did not seem pleased.
     
  4. Winter_123
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    Winter_123 Guru

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    What carriers are you using for whole life?

    Winter
     
  5. bluemarlin08
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    bluemarlin08 Guru

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    Haven't sold WL in 17 years. I currently use UL with secondary guarantees, by far the lowest guaranteed premium per thousand than any other type of permanent policy. Genworth has a good ULNL policy.
     
  6. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    Actually, I do not sell much life insurance. I use whole life for final expense. For that I now use American Amicable, Oxford, and United HOme.

    I use JH UL-g policy for wealth transfer.
     
  7. Winter_123
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    Winter_123 Guru

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    Right. That's pretty much why I asked. Most of the major carriers have moved away from a basic whole life plan as we used to know. Instead, you can use UL with guaranteed minimum premium to support the death benefit and then build in whatever cash value you may or may not want to accumulate, versus old-style whole term where you can't separate out the whole life coverage from the cash value accumulation. The remaining whole life plans that you see around are just small final expense type plans. BlueMarlin, is that pretty much correct or no. If not, slap me around as needed.

    Winter
     
  8. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    Bluemarlin, are you familiar with John Hancock's UL-G? If so, how does it compare to Genworths?
     
  9. bluemarlin08
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    bluemarlin08 Guru

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    In the cases I have compared with Compulife, Genworth is usually the least expensive but never seen Hancock on Compulife. I am licensed with Hancock but mainly sell their LTC. One thing to really look for with your term carriers are the types of policies that are offered for conversion, Genworth is one company that contractually allows conversion to any permanent contract available, not all companies have that language.
    Winter, "The Quiet Company" still moves alot of WL as well as Ohio National, although ON is a LEAP advocate.
     
  10. L5tc
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    L5tc Super Genius

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    SHHHHH Don't let Sy Sternberg hear you say that you don't sell Whole Life. It is amazing how much Whole Life NY Life still sells. Having those "dedicated" agents selling Whole Life as a savings plan doesn't hurt although it's always been a compliance nightmare. However not enough of a nightmare that they don't push, rather SHOVE, the "new org" agents to sell whole life to people who don't know what it is.

    But rest assured says Sy, NY Life will pay all of their death benefits when the next "avian flu" comes along. Of course they will, they overcharge for their term and the old whole life contracts have the insured carrying the majority of the risk - DUH!

    Whole Life Factoid

    I was just shown an old Mass Mutual whole life contract. It was around 70K face value. Do you know that when the woman wanted to cash it in, the 1099 on the dividends that went to pay the premiums exceeded the Cash Value! The 1099 was created because with the lapse of the contract, or proposed lapse the gains became taxable.

    :huh:
     
    L5tc, Aug 5, 2007
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