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Anyone else ever come across this garbage? Rates increase in year 6 and 11 (6 x increase in year 11) and doesn't build cash value until year 13. How do they call these whole life and not UL?
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Anyone else ever come across this garbage? Rates increase in year 6 and 11 (6 x increase in year 11) and doesn't build cash value until year 13. How do they call these whole life and not UL?
Sounds like graded premium Whole Life. I got an inforce on one today. Are dividends reducing premium?
no these things aren't like that. They detail exactly what the rate will be in year 6 and 11. They are strange little policies. They call them modified whole life, which at first made me think they were just reg ROP WL policies. I guess mean modified premium (as in increasing).
Since odd to me that you can call a policy where the rate is guaranteed to increase at 5 year intervals whole life. I don't know how they do it. The lady thought her rate was guaranteed because it was whole life, but it wasn't.
no these things aren't like that. They detail exactly what the rate will be in year 6 and 11. They are strange little policies. They call them modified whole life, which at first made me think they were just reg ROP WL policies. I guess mean modified premium (as in increasing). Since odd to me that you can call a policy where the rate is guaranteed to increase at 5 year intervals whole life. I don't know how they do it. The lady thought her rate was guaranteed because it was whole life, but it wasn't.
no these things aren't like that. They detail exactly what the rate will be in year 6 and 11. They are strange little policies. They call them modified whole life, which at first made me think they were just reg ROP WL policies. I guess mean modified premium (as in increasing).
Since odd to me that you can call a policy where the rate is guaranteed to increase at 5 year intervals whole life. I don't know how they do it. The lady thought her rate was guaranteed because it was whole life, but it wasn't.
These policies started in the 80's as an alternative to UL policies to get people into WL and compete with them.
In the 90's Term companies started using this Step up schedule in order to stop the term insurance expiration..... Protective was the champion of this method and still doing it with their current Term/UL plans. This was great, Term policies would continue without an expiration.... Premiums were high on the step up (usually every 5 years), but at least the insurance did not expire as with most Term policies.
Small Companies still have these step premium WL plans on the books and have regained popularity with the FE markets.