Large Face Amount Whole Life

[bluemarlin08]

Perhaps DCT can answer your question.

 

[ProsperSBC]

BOLI & COLI Golden Handcuffs
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For straight death benefit, a UL policy will most often have a significantly higher death benefit up front. However with a good participating whole life policy, in the later years of life, there will be significant death benefit growth through the use of paid up additions.

I frequently sell WL policies in excess of 250k and the reasons are for the guarantees associated with whole life and the flexibility of withdrawals/loans without affecting the cost of insurance. Not to make this a UL vs. WL debate but I find that the type of policy I sell depends on the clients needs. I have found that in most situations, if cash value is a primary goal of the life insurance, then to properly fund a UL, will be similar in premium to a WL/Term blend. My unofficial, very general, with some exceptions-ish rule is UL= Flexibility Now, WL= Flexibility at withdrawal.

Well Said

 

[bunkerjunker]

Why are you blending, why not stack the two policies on top of each other? That tends to avoid the problem, and you can convert the term over time.

When I mention blend, I do stack them on top of each other. That way the term doesn't affect the whole life. Most of the time, by the time the premium on the term is past its guarantee, the client's total need for insurance is met through the whole life policy and paid up additions, we then let the term lapse. Term for temporary needs and permanent for lifelong needs.

 

[rbrewer]

What company's have the best rates for large WL and IUL.
When you stack, are the two policies tied together? I know Foresters has the Big UL for stacking but I have had a lot of problems with them.

 

[Death Cab For Tootie]

Thank you for posting. What is the client's age and occupation ? Did he currently have whole life policies?

I've only sold wl to peeps that had no life insurance and were looking for FE, and those that currently had wl and were stacking the polices from time to time in increments.

One is a web designer, age 32. He did not have WL prior to working with me. The idea is to convert his term into WL as he makes more money. He understands that WL is a great place to put his long-term conservative dollars. He is very excited about how he will be able to leverage his death benefit to enhance his retirement.

 

[brookfieldpartners]

I sell large face amount whole life when a client is concerned about whether or not the assets are true legacy assets. If they think in 15-20 years they may need the money. WL can be a good alternative. Guaranteed UL in 15-20 years may not have any cash left. Of course in today's day and age, we could just tell them to sell it on the secondary market. But what happens if settlements were no longer a viable option.

Working with people's life insurance is like painting a picture. Really listen and understand what their wants and needs are, and you will find the right solution.

As insurance agents, we see a possilbe solutions that we think would be a great solution, but sometimes you need to question and probe more to know without a doubt if it is the perfect solution for your client.

 

[bill3173]

One is a web designer, age 32. He did not have WL prior to working with me.

Thank you. That's all I needed to know. Now, I am going to search for ~32 year old web designers, apparently they can afford it.

Btw, I meant to post this in the life forum, and put it here by accident.

 

[Death Cab For Tootie]

Thank you. That's all I needed to know. Now, I am going to search for ~32 year old web designers, apparently they can afford it.

Btw, I meant to post this in the life forum, and put it here by accident.

Lots of other professions and age groups can afford the premiums. Most agents don't have the balls to ask for that size premium. Even more don't understand how WL can work for someone before, during, and after retirement and how to explain it to a client.

 

[Franz Kafka]

Most agents don't have the balls to ask for that size premium.

Most can't sell high premiums because they would never spend more than 100 bucks on their own for their own insurance being the cheap skate that they are. Go borrow some money and get a huge WL on yourself and see what happens to your policy size.

 

[InsureGuy5]

Why are you blending, why not stack the two policies on top of each other? That tends to avoid the problem, and you can convert the term over time.

Yep, stacking is the way to go. I never want issues with one life policy to affect the outcome of both.