Whole Life As a Retirement Plan?

[lachjs789]

Regarding term conversion, once a term policy is issued the conversion option cannot be changed to a longer or shorter period via the contract, however the products companies offer for conversion can.

Most companies have the option to make available the product of their choice for conversion and that can change during the life of the policy. A company that currently offers one of their better UL contracts for instance may not do so in 5 years.

 

[Larry Tew]

Regarding term conversion, once a term policy is issued the conversion option cannot be changed to a longer or shorter period via the contract, however the products companies offer for conversion can.

Most companies have the option to make available the product of their choice for conversion and that can change during the life of the policy. A company that currently offers one of their better UL contracts for instance may not do so in 5 years.

The real question is "does the company decides which product I can convert to or can I convert to ANY permanent policy in the company's portfolio?"

 

[lachjs789]

The real question is "does the company decides which product I can convert to or can I convert to ANY permanent policy in the company's portfolio?"

The company chooses the product.

 

[VolAgent]

The company chooses the product.

Not all are that way. Many allow you to convert to any permanent product offered for sale at the time of conversion.

 

[lachjs789]

Not all are that way. Many allow you to convert to any permanent product offered for sale at the time of conversion.

If they allow you to convert to any product in their portfolio or just one, they are still picking the products. The trend has been to the latter where carriers are greatly limiting the product choices.

 

[VolAgent]

If they allow you to convert to any product in their portfolio or just one, they are still picking the products. The trend has been to the latter where carriers are greatly limiting the product choices.

Yes, I guess a carrier that allows you to convert to any permanent product is limiting your choices. They should allow you to convert to any product from any carrier. How dare they.

Carriers that allow conversion to any permanent product like to sell permanent insurance. Carriers that limit to a particular product don't like to sell permanent insurance, which is why you generally limited to an overpriced current assumption UL.

 

[BNTRS]

If they allow you to convert to any product in their portfolio or just one, they are still picking the products. The trend has been to the latter where carriers are greatly limiting the product choices.

While technically true, that's a mighty disingenuous comment, IMO. The highly reputed perm companies, and I don't need to list them, all allow conversion to any available product in their portfolio at time of conversion.

Like Vol pointed out, if the company isn't highly term focused, they have great conversion options.

 

[Larry Tew]

If they allow you to convert to any product in their portfolio or just one, they are still picking the products. The trend has been to the latter where carriers are greatly limiting the product choices.

Are you serious? As an example, if I have a client with Ohio National term (plus option) and he can convert to any product in ON's line at the time of conversion, how much better do you think it's supposed to be?

 

[LGilmore]

"If they allow you to convert to any product in their portfolio or just one, they are still picking the products"

Sorry that is one of the dumbest statements I've ever read. It's a term conversion. It's a conversion, you MADE a choice and you WERE WRONG. Be glad you can convert without proving your health, cause you were WRONG.

I can't believe you sit there and b itch about what choices you have with a term conversion. You bought term, you took a gamble that you wouldn't need coverage later and you were WRONG! If you don't like the option, go elsewhere if you can. If not, be glad you have something at all.

Most of the time when term is sold, the nose gets turned up at the word convertable to begin with. You've got the world by the short hairs, no agent can tell you that you need to plan. You don't need a conversion option at all, cause everything and I mean everything is going to go exactly the way you planned.

For many of the clients who have put themselves in that position of getting old and getting unhealthy, they're just dam glad that option is available at all. You know what s ucks worse than a term conversion? Not having that option when your other policy is ending and you have nowhere to go.

I am dealing with that right now with a guy whose 900,000 term policy is ending this year. He may be a table 8 today, if he gets an offer at all. When he purchased that policy he was a preferred. Don't think he'd b itch about what plans he could convert to as a preferred compared to a table 8?

Geese, sometimes people are so smart they're stupid.

 

[VolAgent]

"If they allow you to convert to any product in their portfolio or just one, they are still picking the products"

Sorry that is one of the dumbest statements I've ever read. It's a term conversion. It's a conversion, you MADE a choice and you WERE WRONG. Be glad you can convert without proving your health, cause you were WRONG.

I can't believe you sit there and b itch about what choices you have with a term conversion. You bought term, you took a gamble that you wouldn't need coverage later and you were WRONG! If you don't like the option, go elsewhere if you can. If not, be glad you have something at all.

Most of the time when term is sold, the nose gets turned up at the word convertable to begin with. You've got the world by the short hairs, no agent can tell you that you need to plan. You don't need a conversion option at all, cause everything and I mean everything is going to go exactly the way you planned.

For many of the clients who have put themselves in that position of getting old and getting unhealthy, they're just dam glad that option is available at all. You know what s ucks worse than a term conversion? Not having that option when your other policy is ending and you have nowhere to go.

I am dealing with that right now with a guy whose 900,000 term policy is ending this year. He may be a table 8 today, if he gets an offer at all. When he purchased that policy he was a preferred. Don't think he'd b itch about what plans he could convert to as a preferred compared to a table 8?

Geese, sometimes people are so smart they're stupid.

Well said. From preferred to table 8, I bet his conversion premium is about the same or less than a new term premium.

I'm sure I'll get some flack for this, but buying cheap term doesn't pay. If you are that cheap, just go without. What you save by going with a worse conversion option won't even touch what you spend in one month because you don't have decent conversion.

A big pet peeve of mine is WOP that is also convertible. Sure, you probably won't use it, but when you do, it was the smartest decision you ever made regarding insurance.