How bad is Table 10?

[Tahoe Ray]

I am seriously thinking about just doing splits with a lot of my deals. I am getting lazy and some life changes have me wanting to do other stuff with my time. But these people keep calling me. two more today. FE deals but still money.

50% of something is better than 100% of nothing.

I'll take the term rewrites (assuming that you'll do your own conversions because those are free money)

Daytimer could do your FE but I think he needs to learn use one finger at a time vs all four knuckles.

EDIT: I know that sounds bad looking back but I'm talking about phone vs. Doorknocking.

 

[Chuckler]

So the Table 10 is either going to immediately shorten lifespan or will not have any impact

@Chuckler , you need to listen to Rousmark on this issue.

This person needs as much as they can get. Or at least as much opportunity for future coverage they can get.

A life pay policy lets them CHOOSE to stop paying premiums via Reduced PaidUp.

NYLs Custom WL will not give them that option.

We are talking about a potentially large difference in DB here. Maybe they want to stop premiums early. But why wouldnt someone like that not want the option to continue and build an even higher DB?

Explain that logic to them and present a life pay policy. They will see it as you being a competent professional looking out for their best interest, not the other way around.

I’m not trying to be dense, but I’m not sure I fully understand what you’re recommending and why. I appreciate the guidance and would 100% follow it if I understood what you’re suggesting and why.

 

[Tahoe Ray]

So the Table 10 is either going to immediately shorten lifespan or will not have any impact


I’m not trying to be dense, but I’m not sure I fully understand what you’re recommending and why. I appreciate the guidance and would 100% follow it if I understood what you’re suggesting and why.

Hey Tyler...for what it's worth I've spoken w/ this guy on the phone and he 100% wants to learn.

Chuck, Scagnt83 has forgotten more about permanent life insurance than a lot of us know.

 

[Chuckler]

Hey Tyler...for what it's worth I've spoken w/ this guy on the phone and he 100% wants to learn.

Chuck, Scagnt83 has forgotten more about permanent life insurance than a lot of us know.

Thanks Ray!

 

[scagnt83]

Chuck, Scagnt83 has forgotten more about permanent life insurance than a lot of us know.

Only because its 4/20 today !! LOL

 

[WinoBlues]

ok. I'll write him another 1m when he's older and has to pay more. His decision.

Inventory
Pantry
Emergency supplies
MREs
Low hanging fruit
Garden

 

[scagnt83]

So the Table 10 is either going to immediately shorten lifespan or will not have any impact


I’m not trying to be dense, but I’m not sure I fully understand what you’re recommending and why. I appreciate the guidance and would 100% follow it if I understood what you’re suggesting and why.

No worries.

A T10 has a substantially shorter life expectancy than a Standard rating. NYL used to have a life expectancy report in the illustration software (14 years ago when I worked there) (and yes, you are a captive agent at NYL).

Compare a Standard to a T10 using the Life Expectancy Report in "additional or optional reports" section.

LFG has this feature:
For a 41yo Standard Rating, Life Expectancy is age 83.
For a 41yo T10 Rating, LE is age 76.

Almost a 20% reduction in life expectancy for T10 vs. Standard. That should help put the situation in perspective for the client if they push back on the rate up at all.

----

Custom WL is a contractually paid up policy at a certain year. Meaning they cant pay premiums past that point, not even if they want to.

NYL has a Life Pay Product called "Standard WL" if I remember the name correctly.

Now I realize they are pushing the hell out of CWL to you new guys. It performs the best for CV build up by a small percentage. It also makes it easy to teach you new guys how to design a policy. (less work for them)

But there is one main point to consider:
Statistically speaking, this is the last chance they have at life insurance. If they need more in the future (life happens, trust me) they cant get it.

So which product allows the client to keep building the most DB?
Which product gives the highest initial DB? Or highest DB at year 20/30/40?

I recommend you go compare the two, today. Using the same premium:

1. Run a Reduced PaidUp option on the Standard WL, ending premium after y20. Compare DB and CV.

2. Run Standard WL with Base Premiums to age 100. Run PUAs (pop) for just 20 years. Compare.

#1 is your current plan, only using StdWL instead of CWL.

#2 is the optional plan he can choose to do if he desires an even higher DB after y20.


I would guess that Standard WL already gives him a higher DB initially. Limited Pay products always have a lower DB per dollar of annual premium, because carriers are looking at cumulative premium to base the DB off of.

So this person with a much higher likelihood of utilizing the DB at an early age, not only gets a higher initial DB. But they also get the option to increase the DB even more after 20 years if they feel it's needed.

Now maybe this sale is focused on CV build up. idk. But the older someone gets, the more they value the DB. And the IRR on CV is not going to be a huge difference between the two products.

There is absolutely zero reason I can think of to use Custom WL for this client vs. Standard WL. Standard gives him more options, more flexibility, more protection.

He is unable to add the Option to Purchase Additional Insurance because of the Table Rating.

The Standard Lifetime Pay product gives him the option to continue premiums, which will substantially increase the DB after y20. If he doesnt want to, he doesnt want to. But at least he has that option. Which is an additional layer of financial security you would be providing him.

 

[WinoBlues]

@scagnt83

That's some good Chit there Tyler.
Way to not bogart that info.

 

[Chuckler]

No worries.

A T10 has a substantially shorter life expectancy than a Standard rating. NYL used to have a life expectancy report in the illustration software (14 years ago when I worked there) (and yes, you are a captive agent at NYL).

Compare a Standard to a T10 using the Life Expectancy Report in "additional or optional reports" section.

LFG has this feature:
For a 41yo Standard Rating, Life Expectancy is age 83.
For a 41yo T10 Rating, LE is age 76.

Almost a 20% reduction in life expectancy for T10 vs. Standard. That should help put the situation in perspective for the client if they push back on the rate up at all.

----

Custom WL is a contractually paid up policy at a certain year. Meaning they cant pay premiums past that point, not even if they want to.

NYL has a Life Pay Product called "Standard WL" if I remember the name correctly.

Now I realize they are pushing the hell out of CWL to you new guys. It performs the best for CV build up by a small percentage. It also makes it easy to teach you new guys how to design a policy. (less work for them)

But there is one main point to consider:
Statistically speaking, this is the last chance they have at life insurance. If they need more in the future (life happens, trust me) they cant get it.

So which product allows the client to keep building the most DB?
Which product gives the highest initial DB? Or highest DB at year 20/30/40?

I recommend you go compare the two, today. Using the same premium:

1. Run a Reduced PaidUp option on the Standard WL, ending premium after y20. Compare DB and CV.

2. Run Standard WL with Base Premiums to age 100. Run PUAs (pop) for just 20 years. Compare.

#1 is your current plan, only using StdWL instead of CWL.

#2 is the optional plan he can choose to do if he desires an even higher DB after y20.


I would guess that Standard WL already gives him a higher DB initially. Limited Pay products always have a lower DB per dollar of annual premium, because carriers are looking at cumulative premium to base the DB off of.

So this person with a much higher likelihood of utilizing the DB at an early age, not only gets a higher initial DB. But they also get the option to increase the DB even more after 20 years if they feel it's needed.

Now maybe this sale is focused on CV build up. idk. But the older someone gets, the more they value the DB. And the IRR on CV is not going to be a huge difference between the two products.

There is absolutely zero reason I can think of to use Custom WL for this client vs. Standard WL. Standard gives him more options, more flexibility, more protection.

He is unable to add the Option to Purchase Additional Insurance because of the Table Rating.

The Standard Lifetime Pay product gives him the option to continue premiums, which will substantially increase the DB after y20. If he doesnt want to, he doesnt want to. But at least he has that option. Which is an additional layer of financial security you would be providing him.

Okay that makes sense. Thank you so much for explaining that. I'll talk with the family and present that option.

 

[DayTimer]

Daytimer could do your FE but I think he needs to learn use one finger at a time vs all four knuckles.

At first I was like "now what the heck is Ray trying to imply about me?"

That's some good Chit there Tyler.

We'd better be careful, or this place is going to turn into a legitimate insurance forum.

(and yes, you are a captive agent at NYL).

Is @Chuckler an NYL agent?