Why Do Gul Illustrations Only Show the Guaranteed Values?

Feb 12, 2016

  1. sirherbie
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    How come gul illustrations only show the guaranteed side? I'm correct in assuming the gul illustration is showing the maximum cost of insurance and Guaranteed lowest interest rate? What i'm saying in reality isn't there policy using a current cost of ins and interest rate than the illustration they sign that shows zero cash value?
     
  2. Mattschmidt
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    think you are using wrong software.

    Most GUL's I illustrate show Guaranteed and Non guaranteed. Or if using IUL, they should show guaranteed, mid point, and illustrated figures.
     
  3. sirherbie
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    I have winflex and Aig nor Lincoln show current assumptions on their Gul illustrations.Sagicor doesn't show current either. Is the Gul guaranteed we see on the illustration the guaranteed cost of insurance and lowest interest rate possible? Some with information on how this works please chime in.
     
  4. mcouper
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    Most if not all GUL's don't have current assumption cash value, they are designed with a shadow account that you dont see on an illustration. AG's does have guaranteed cash, Lincoln's GUL has no current or guaranteed cash (basically term for life). You will see current assumption cash value growth on a VUL-G such as Lincoln's VULone or Nationwide's VUL Protector - but in those cases, no guaranteed cash value, just guaranteed db.
     
    mcouper, Feb 14, 2016
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  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    If the column you're looking at says guaranteed then that is the guaranteed cost using guaranteed expenses and guaranteed interest rate.
     
    scagnt83, Feb 14, 2016
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  6. Robert Barney
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    Precisely. And that's why buyers of these product buy them, for the death benefit, not cash values. Cash values mean NOTHING at death, they are part of the death benefit.

    If someone wants a guaranteed death benefit, payable to their estate/beneficiary WHEN they die, then nothing is less expensive than a guaranteed no lapse UL products.

    BUT DON'T miss payment of a premium, which is why a consumer should buy a limited pay variation if they can afford it. Miss a premium, you lose the guarantee, and the policy blows up.

    And if you're not buying a permanent policy for the death benefit when you die, why are you buying it?
     
  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I just think the original question is kind of funny.

    "Why does a GUARANTEED UL illustration only show GUARANTEED values?"

    The answer is rather obvious to me: You don't buy a guaranteed product for non-guaranteed features.

    GUL is not purchased for cash values. Only for its permanent death benefit and guaranteed level premiums.

    Think of GUL like a permanent term policy.
     
    DHK, Feb 14, 2016
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  8. WinoBlues
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    To broad of a statement. I have several GULs in force where the client has missed payments, reduced face amount and I believe taken loans and the guarantees remained intact.
     
  9. sirherbie
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    The reason I'm asking this question is very simple. Yes I know a Gul has no cash value and is designed to last till death.Is the guaranteed illustration I'm looking at using the assumption of the highest guaranteed cost of insurance possible plus the lowest interest rate allowed? Since they don't illustrate the current interest rate and cost of insurance I can't see how much leeway the client has in missing a payment here and keeping the guarantees . If the client took out a Gul 10 yrs ago will his present cash value be greater than what the Gul guarantees showed at the time 10 yrs ago? IN OTHER WORDS WILL THERE BE A CUSHION OF CASH VALUE 10 or 20 yrs from now allowing the client to miss a few payments versus the guaranteed Gul illustration?
     
  10. WinoBlues
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    On a ten year old GUL call the company and get the values. On a plan you want to propose find out if they have a catch up provision.

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    Also, a ten year old illustration is not going to help you
     
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