Why does America hate whole life so much?

[Allen Trent]

Quit paying. Show me ANY whole life policy that leaves you with a better cost base versus term if both are cancelled withing 10 years. Love to see an example with numbers.

The devil is in the details.

So, everyone that lapses in say yr 5 no longer needs coverage & is still insurable when they reapply?

I will send you an illustration from WL 6 months ago with very small WL base & max funded PUAR MEC. That same money in term policy & a mutual fund today would be worse off after load fees & market losses. But I don't think that is a realistic or fair comparison.....just like how you are so singular focused on insurance for all being always in a perfect vacuum with perfect clients & perfect decisions. If you are always focused on cheapest, they should buy ART so they don't overpay for 20 or 30 yr if they cancel or don't need any more

 

[Robert Barney]

So, everyone that lapses in say yr 5 no longer needs coverage & is still insurable when they reapply?

I will send you an illustration from WL 6 months ago with very small WL base & max funded PUAR MEC. That same money in term policy & a mutual fund today would be worse off after load fees & market losses. But I don't think that is a realistic or fair comparison.....just like how you are so singular focused on insurance for all being always in a perfect vacuum with perfect clients & perfect decisions. If you are always focused on cheapest, they should buy ART so they don't overpay for 20 or 30 yr if they cancel or don't need any more

Why do you keep changing the parameters. 10 years. Compare a competitive 10 year plans versus a whole life plans, QUIT both in 10 years, and show me where the W/L leaves you further ahead (in terms of cold hard cash).

Do a 55 year old. Guy wants insurance for 10 years and he's done. No more insurance.

 

[DHK]

10-pay life. By year 10, cash values = premiums paid.

 

[rousemark]

Why do you keep changing the parameters. 10 years. Compare a competitive 10 year plans versus a whole life plans, QUIT both in 10 years, and show me where the W/L leaves you further ahead (in terms of cold hard cash).

Do a 55 year old. Guy wants insurance for 10 years and he's done. No more insurance.

That is not a WL prospect. IMHO

 

[Allen Trent]

That is not a WL prospect. IMHO

Unless the person decides at end of 10 yrs that they do want the coverage to continue. Once, maybe twice in the history of insurance the client says at the end of the level period that they had no idea that the premium skyrocket.

 

[fed up]

Is it any wonder why the buying public is skeptical of Whole Life when even our experts can't agree on what is best?
What is best is what is best for the customer. do your fact finder, ask questions, present options, and let the customer know the ins and outs of all proposals. I can't spend someone's money and neither can anyone on the forum. When the pros of Whole life outweigh the Negatives then Whole Life is the answer. I prefer a mix myself so that there is a lot of coverage when needed and some coverage which never changes premium and lasts until the end

 

[WinoBlues]

Where are you guys coming up with this 10 year and quit the idea?

On the rare occasion I have worked with anyone that only wanted a policy to last 10 years, I write it. However, many times in years 8-10 they start questioning me as to why I only offered them 10 years. It has taught me to keep the quotes in the file. Recently I emailed a client the Compulife side by side quotes with all the notes on it. He was ticked because his OldLine 20yr term was terming out. However, he was going to be retired and his mortgage was going to be long paid. Oooops! No worries, I wrote him again at age 74.

Last year I wrote two ten year term plans.
One for a long time (20 yrs) client. Male, 70s, $500,000. He was ticked that he did not buy permanent years ago. I have sold him and his wife and business partners something like 10 term policies because their CPA said Permanent is a ripoff. Quoted him Std he came in Prd. Did he take the rate savings? Nope! He chooses to increase to 15 year term. Which was the max term we could get based on age. He wanted to buy that one thing that keeps dwindling, Time. BTW, his wife is battling Cancer, Her term plan is a year or two from terming out. The CPA discouraged them from converting a couple of years ago. Now past conversion age.
The other is a $10,000 WL client that I had AOR'd years ago. Wrote him $1,000,000 10 year TA term, Male age 64. Has an older $1,000,000 Term with someone else. I was recommending a $2,000,000 GUL. I wrote him Prd and he comes back P+. Did he take the rate savings? Nope! He moved up to 15yr term. He called me this morning. His attorney has told him he needs $5,000,000. So he wants to meet next week. I did not ask him, however, I truly doubt his attorney is thinking 10-year term.

I have written a lot of term. It is inventory to me.

I wish I had written much more ten-year term.

 

[fed up]

My physician wanted a 5 year Term policy because he was going to retire at 65 and would not need the policy. I wrote a 15 year term told him he was spreading the risk over 15 years and if he wanted th quit after to stop paying the premium. 10 years later he is still practicing, still has the policy in force, and thanks me every time I see him.

 

[pfg1]

So, everyone that lapses in say yr 5 no longer needs coverage & is still insurable when they reapply?

I will send you an illustration from WL 6 months ago with very small WL base & max funded PUAR MEC. That same money in term policy & a mutual fund today would be worse off after load fees & market losses. But I don't think that is a realistic or fair comparison.....just like how you are so singular focused on insurance for all being always in a perfect vacuum with perfect clients & perfect decisions. If you are always focused on cheapest, they should buy ART so they don't overpay for 20 or 30 yr if they cancel or don't need any more

You will not gain any traction Allen. Some folks are set in their ways and not open to other options. Its ok. We know that Term & Perm both fill a great need. I have a 63yo client that did a 7pay and by year 6 he could walk without a loss, by 10 he has $80k more walk away cash value than he put in. What a ripoff.

 

[Allen Trent]

Why do you keep changing the parameters. 10 years. Compare a competitive 10 year plans versus a whole life plans, QUIT both in 10 years, and show me where the W/L leaves you further ahead (in terms of cold hard cash).

Do a 55 year old. Guy wants insurance for 10 years and he's done. No more insurance.

I know you wont accept this. But, below is my own person policy from last spring. I peeled off 100k of term coverage I have as a rider on a UL policy from 15 years ago. I bought the smallest face base WL I could at 25k & then I dropped the max lump sum into PUAR that the contract allowed. I took the money from my excess bank account money making no almost no interest & issuing me a 1099 each year. I don't think this is such a horrible policy for me. commits me to almost no annual premium for the small permanent face, I can have dividend pay part or all of the base premium & I can exchange for RPU coverage at any time.

BTW-- it is break even at 2nd anniversary compared to the term rider I was paying for will be a loss. with me being in the 35% -40% combined tax bracket, my bank interest was essentially zero. at 10 year anniversary, it illustrates to be 9200 positive -that is cumulative 32% gain over & above my premium whereas my term was going to be 100% loss if I lived. I did this all without being underwritten.

I am not saying everyone should buy WL. I believe everyone should max out term, max out retirement savings. but after that, I believe WL has a very solid place compared to most safe money equivalents of bank or bond money places to save. millions of Americans need at least FE WL or 25k-100k WL plans in place to help their spouse if they die in their 60s -90s as most Americans leave their spouses in a bad place.

keep believing that permanent has no place & term is the only solution, but you are 1000% percent wrong no matter what you can make a spreadsheet look like. spreadsheets don't factor in human nature or unforeseen life events that most families face many times