Definitions: Whole Life Insurance Vs Permanent Life Insurance

[STIBROKER]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

All that glitters is not gold!

 

[jamesbell]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

very useful information..thank you for sharing this important information. hope to see more information soon.

 

[Beleriand]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Whole Life provides permanent coverage with a guaranteed death benefit and level premiums. Plan gains value over time and is subject to investment gains and loses.

On the other hand, Universal Life provides permanent insurance with an optional tax sheltered investment component. Death benefit can be level or increasing making this an excellent option for estate preservation and maximization.
For more details, cou can visit this good web site: Life Insurance | Life Insurance Canada

 

[Kenno]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

WL and UL both have their appropriate place in our toolbox of insurance solutions. When a client wants insurance that they know will be there whenever they pass and they want a nice funeral, whole life is great product.

UL is great in the many ways we can structure a policy to meet the exact needs of a more comprehensive plan. A 40-year old client wants increasing death benefit for the next 30 years to accumulate the most SV, at which point a withdrawal of the SV is made to supplement retirement and we also alter the premium at that time to level-death benefit to lower the premium.

I had a client who only wanted a policy lasting until age 91. I was able to dial in a GUL to that age.

They both have their place, it just depends on the needs of the client.

 

[ActingBoss]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

For a guy who held his license for 20 years, this is beyond elementary. This is not me being pedantic, this is Insurance 101.

If you're offering personal life insurance advice without a license, you're breaking the law. I would tread lightly if I were you.

A bit pedantic, arent we?

He can offer all the advice he wants sans............so long as he gleans no fee, either directly or indirectly on basis of same.

 

[VolAgent]

Technical question about Whole Life cash value...

I don't have much experience with Whole Life insurance. Mostly, I have sold CUNA Mutual whole life. Their Two Question Whole Life (TQWL) product builds a modest amount of cash value. HOWEVER, the cash value is NOT added to the death benefit in the event of the insured's death. The cash value goes back to CUNA Mutual in that event, and only the original death benefit amount (10K, 25K, etc.) is paid out. My question: is this normal for Whole Life products? Is this a distinct feature of "Final Expense" products (although CUNA Mutual never uses the term Final Expense).

You really should re-read what whole life is and how it works.

Only the death benefit is paid out at death, always. The death benefit may have grown if it is a participating policy and the dividends were used to buy paid-up additions. But still only the death benefit is paid.

The cash value is a non-forfeiture option. The owner can elect to surrender the policy for the cash value or borrow against it. This is why it really is called, surrender cash value or cash surrender value.

 

[DHK]

Technical question about Whole Life cash value...

I don't have much experience with Whole Life insurance. Mostly, I have sold CUNA Mutual whole life. Their Two Question Whole Life (TQWL) product builds a modest amount of cash value. HOWEVER, the cash value is NOT added to the death benefit in the event of the insured's death. The cash value goes back to CUNA Mutual in that event, and only the original death benefit amount (10K, 25K, etc.) is paid out. My question: is this normal for Whole Life products? Is this a distinct feature of "Final Expense" products (although CUNA Mutual never uses the term Final Expense).

This is standard for most whole life policies. (I say *most* because I'm sure there's some exception somewhere.)

The term you need to learn is called "net amount at risk". The death benefit = net amount at risk + cash values - any outstanding loans against the cash value.

The cash value does NOT "go back to CUNA Mutual". It is paid out in addition to the net amount at risk.

 

[VolAgent]

Again, your lack of insurance knowledge is showing.

The $38 a month is buying him $10,000 in coverage. You were also given good advice, you really shouldn't be talking about the cash value with them. You don't understand it and would almost certainly give bad advice.

Whole life is designed to endow at maturity, such that the cash value equals the death benefit. If it were to pay out the death benefit and cash value, the premium would be even higher. So no, they wouldn't be doing him or his family a favor to pay the $10,000 plus the cash value.