Why are cash values available for whole life and not term?

[Spin]

Is the cash value used to make permanent policies more tempting to prospects or something else?

 

[Spin]

And are 1035s just for moving the cash values from one policy to another?

 

[billyb]

I think the guaranteed death benefit is more important to most.

 

[DHK]

"Fill the box or pay the curve." - Guy Baker

 

[DHK]

And are 1035s just for moving the cash values from one policy to another?

1035 exchanges are for transferring the cost basis and cash values of a policy to another.

You can transfer from life insurance to an LTC or an Annuity... but you cannot move from an annuity to LTC or life insurance.

 

[Life Hawk]

Do a quick investigation into ROP term.

 

[adjusterjack]

"Fill the box or pay the curve." - Guy Baker

I hate meaningless platitudes.

And the people who say them.

 

[Allen Trent]

I hate meaningless platitudes.

isnt this response both meaningless & a platitude?

If not, I might not understand either

 

[Allen Trent]

Is the cash value used to make permanent policies more tempting to prospects or something else?

with whole life, it is done to comply with the laws that requires whole life to build cash value equal to the face amount at maturity (ie: age 100-120). if whole life doesnt do that, it isnt legal & wouldnt be approved by any state to be called whole life insurance

For UL, IUL, VUL, the cash value is used to cover all the internal charges that will get higher & higher & higher each year inside the policy as the person ages if there is no cash value. This is because all versions of UL are merely an annually increasing term insurance policy with an optional cash value component.

if the cash value isnt important & someone wants only permanent protection, they can use a UL/IUL product with a No-lapse guarantee rider that will guarantee the death benefit as long as the premiums were paid as required into the policy

 

[DHK]

I hate meaningless platitudes.

And the people who say them.