Any GUL out there with a term rider
- Thread starter jboussea
- Start date
I believe there are a few with estate term riders (that last 4-5 years) but I'm not aware of any that have a "real" term rider.
- 10,330
Lincoln offers a level term rider of 10 or 20 years.
Penn offers a spousal and childs term rider. A few others offer child riders I think.
Penn offers a spousal and childs term rider. A few others offer child riders I think.
- Thread starter
- #4
yes thanks to you I found out about the Penn Spousal rider .. but I'll check Lincoln for the regular term rider.
- 10,330
Lincoln offers both. "Supplemental Term" on Primary Insured, and Supplemental Term on "other insured". Plus they have a child rider too.
- Thread starter
- #6
I checked it out... How do you feel about Lincoln's underwriting process. A couple years ago I was told it was a pain to deal with. I didn't have much of a use case for it.
- 10,330
No more of a pain than any other fully underwritten carrier.
They have always been especially friendly to those over age 50 imo.
Comments like that, ive found, often come from agents who are not used to fully underwritten products... or just dont have a well rounded experience with multiple carriers and them all having different UW variations. Lincoln is a top notch carrier, one I've placed a ton of biz with in the past.
- Thread starter
- #8
Gotcha .. I've found that most of the issues with Fully Undewritten carriers typically come from the APS which is often out of the carrier's control.
- 4,576
In most situations, I find term riders to be a horrible idea for the client & stand alone separation to be better planning. In addition to the cost being at ART rates inside a UL in many cases, there are many life events that can happen to be problems.
1. Job loss or financial problems. If client needs to save a ton of money in a financial disaster, they tend to want to cancel the higher prem committment of permanent, not term. Having a rider normally means the person loses the cheap term coverage they likely want to keep, but riders end when base policy ends. Not everyone is insurable to buy new term & they will be older & likely less insurable or uninsurable.
2. Spousal riders can also be a bad idea for all the same reasons, but add to it the divorce issue. Many states have divorce laws that don't even permit a person to continue being the owner or beneficiary on a life policy after divorce unless specifically addressed in a divorce decree. Most basic divorces have default language, not specific language.
All that aside, the only time I think term riders might be a solution is when you have someone that truly is maxing out funding on a small base WL/UL/IUL & putting a base insured short term rider adds IRS premium room. Even then, term riders can be dangerous if they renew for decades rather than timing out after 10 or 20 yrs. Again, ART COI can be a problem long term
To each his own, but I advise against base or spousal riders the vast majority of time
1. Job loss or financial problems. If client needs to save a ton of money in a financial disaster, they tend to want to cancel the higher prem committment of permanent, not term. Having a rider normally means the person loses the cheap term coverage they likely want to keep, but riders end when base policy ends. Not everyone is insurable to buy new term & they will be older & likely less insurable or uninsurable.
2. Spousal riders can also be a bad idea for all the same reasons, but add to it the divorce issue. Many states have divorce laws that don't even permit a person to continue being the owner or beneficiary on a life policy after divorce unless specifically addressed in a divorce decree. Most basic divorces have default language, not specific language.
All that aside, the only time I think term riders might be a solution is when you have someone that truly is maxing out funding on a small base WL/UL/IUL & putting a base insured short term rider adds IRS premium room. Even then, term riders can be dangerous if they renew for decades rather than timing out after 10 or 20 yrs. Again, ART COI can be a problem long term
To each his own, but I advise against base or spousal riders the vast majority of time
- Thread starter
- #10
All of what you say makes sense in theory .. and it's great for academic discussion.... but in my local market (not everyone but the majority) that will not buy the term.. I often present them with the option and the ones who say they do, want to put it off and they never actually make the move when I follow up... and those permanent policies get stick because that's what they believe in .. they didn't have to be convinced... because when I have to convince someone about a type of policy .. they can be easily "unconvinced" either by someone else or morel likely by time passing by...
I say this I'm usually not trying to "sell" the permanent ..I'm trying to sell the term.. and when you mention 2 different policies is when they start hesitating. If they hesitate at the time of application, what do you think will most likely happen a few months later.
I even had one a couple months ago who refused to buy life insurance without it being one policy for everyone in the family (including her husband).. (which is why I made the thread about the spousal rider ) ..
Now my online clients are different .. a different market altogether .. they probably lean too much toward the term.. A few months ago I had someone want to buy term "because it was cheaper" for their 72 year old mother. ..
Reason # 329842340938 that I hate this Whole vs Term debate that goes on online & on the ground.
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