Since we're on the subject of mortgage protection. I have to ask. Has anyone ever tried anything different than term. Such as a max funded equity indexed UL product? I've read Doug Andrews book Missed Fortune 101 and was wondering how it would go over when I run into people who are already sending the mortgage company a few hundred extra a month to pay it off quicker. The strategy is to write the EIUL face amount to still cover the mortgage, but max fund it so the cash builds up quicker and when the cash value equals the mortgage payoff you use that money to retire the mortgage and drop the insurance coverage or just keep the EIUL and keep max funding it for retirement with the same monthly payment that was going to pay the house off.
Years and years ago... maybe 24 or 25 to be exact, prior to the term explosion of level and guaranteed term boom, I used to use a decent UL product and a software product which would graph the decline of the clients mtg, based on current amortization, along with c/v accumulation of the UL. At the point where the two intersected it would show that they could use the c/v to payoff the mtg balance, usually about yr 16 or 17 of a 30 yr mtg... (based on then current int rates, which didn't hold up either). Now likely no one ever did so, but the visual was a powerful tool in selling the use of UL for that the purpose you mentioned.
I have NO idea where that program came from... but it would be easy to resurrect in MS Office, I would think.
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