Definitions: Whole Life Insurance Vs Permanent Life Insurance

[BNTRS]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Whole life generally has an APL (Automatic Premium Loan) provision on it. Premium loans against CSV to keep the policy in force. Or you could (if applicable) apply the dividends to pay the premium (or some part of it and use APL for the remainder). Or take a paid-up reduced policy.

Lots of moving parts to whole life.

More like lots of options. "Moving parts" is generally referred to when there's a caveat emptor moment going on, none of what you discussed in that post would make me think it needs to be placed in that category.

 

[Dave020]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Rephrase - lots of options. You are correct. You knew that was what I meant, right?

 

[termlifeinsuranceus]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Hey Bob, it's Chris Huntley, one of your subscribers. My answer is different depending on who I'm talking to. You're definitions are correct, but if I'm speaking with a prospect who asks me for whole life insurance, I usually say something like, "Now are you just looking for the type of whole life insurance where you pay the minimum premium to keep your death benefit guaranteed to stay in force for the rest of your life, or are you interested in paying additional premium to also build up cash value?" I usually don't correct their name for it, even if all they really want is guar. UL. After I figure out what they want, I tell them about the type of whole life policy I can offer them, and at the end of my explanation, say, "and this kind of whole life insurance is called guaranteed universal life insurance". I know the terms are not exactly right by industry standards, but it get the job done and confuses people a lot less.

 

[jdeasy]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Hey Bob, it's Chris Huntley, one of your subscribers. My answer is different depending on who I'm talking to. You're definitions are correct, but if I'm speaking with a prospect who asks me for whole life insurance, I usually say something like, "Now are you just looking for the type of whole life insurance where you pay the minimum premium to keep your death benefit guaranteed to stay in force for the rest of your life, or are you interested in paying additional premium to also build up cash value?" I usually don't correct their name for it, even if all they really want is guar. UL. After I figure out what they want, I tell them about the type of whole life policy I can offer them, and at the end of my explanation, say, "and this kind of whole life insurance is called guaranteed universal life insurance". I know the terms are not exactly right by industry standards, but it get the job done and confuses people a lot less.

You are trying to sell them UL and telling it's whole life? That's the kind of crap AARP pulls.

 

[Newby]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

I took Chris's post the same way as JD. It surprised me because everything else you have posted appears that you are a good professional agent.

But I think to not educate your client that whole-life and UL (including GUL) are two completely different animals is taking a shortcut that shouldn't be taken. You can still sell it but it's just completely wrong information.

It's like selling a mutual fund and letting the client call it a bond and not correcting and educating them.

 

[Briefcaseboy]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Whole life matures at age 100. Whole life builds cash value and when the cash values builds up enough to equal the face amount, that's when it matures. Right ? Although I don't know how the cash value builds on ten pay or twenty pay.

 

[VolAgent]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Whole life matures at age 100. Whole life builds cash value and when the cash values builds up enough to equal the face amount, that's when it matures. Right ? Although I don't know how the cash value builds on ten pay or twenty pay.

Most whole life matures at 121 now. And 10 pay and 20 pay operate the same way. Guaranteed interest is credited to the cash value. The calculations were previously done to make the cash value equal face amount at maturity.

 

[Newby]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Whole life matures at age 100. Whole life builds cash value and when the cash values builds up enough to equal the face amount, that's when it matures. Right ? Although I don't know how the cash value builds on ten pay or twenty pay.

Modern whole life matures at age 120.

With 10 pay and 20 pay you simply pay a higher premium in for a shorter period of time. The total of premiums plus the guaranteed interest equals the face amount at maturity date.
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Most whole life matures at 121 now. And 10 pay and 20 pay operate the same way. Guaranteed interest is credited to the cash value. The calculations were previously done to make the cash value equal face amount at maturity.

Great minds think alike.

 

[NCnatwidagent]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

When I have a prospect that asks for "whole life" Its my time to educate them. I ask..."are you looking for a permanent policy to last your whole life?" Then I can show them the differences in the types of policies that I offer. Most people just go by the term "whole life" and really mean permanent that won't go away.

 

[Newby]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

When I have a prospect that asks for "whole life" Its my time to educate them. I ask..."are you looking for a permanent policy to last your whole life?" Then I can show them the differences in the types of policies that I offer. Most people just go by the term "whole life" and really mean permanent that won't go away.

Whole life means something very different than permanent or UL. It's just like people calling Medicare Advantage plans their Medicare Supplement.

They shouldn't still be ignorant after you teach them.