Whatever remaining cash value (likely $0) would be paid and the death benefit would end. As of yet, nobody has ever lived past that point, so it's not really an issue.
Most policies I have seen that guarantee coverage past the age of 115 offer a true "Coverage Protection Guarantee" with a continuation clause. Are you familiar with this?
I find it odd that a person who spends so much time "BASHING" Final Expense and the agents that sell it. While promoting the need for using underwritten U.L. in its place; would not know one of U.L.'s key components.
Take a closer look next time before saying "it's not a really an issue." The last time I checked you, as the insurance professional, have a fiduciary responsibility to make sure your clients understand what they are buying. I hope this helps..............
I had no interest in a UL policy. Side by side the UL cannot touch a good participating WL. Where UL is useful is in advanced ages. When I am ready to use it I will have a nice chunk of money that I can access.
Most policies I have seen that guarantee coverage past the age of 115 offer a true "Coverage Protection Guarantee" with a continuation clause. Are you familiar with this?
I find it odd that a person who spends so much time "BASHING" Final Expense and the agents that sell it. While promoting the need for using underwritten U.L. in its place; would not know one of U.L.'s key components.
Take a closer look next time before saying "it's not a really an issue." The last time I checked you, as the insurance professional, have a fiduciary responsibility to make sure your clients understand what they are buying. I hope this helps..............
Do you have an example of the guarantee? All of the illustrations I've run show the death benefit going to $0 at age 121. Many policies become paid up at age 100 (even if coverage continues until 121), but generally speaking, the cash value would be paid out. You would need to look at the carrier-specific illustration to get an exact answer. I've never had a client complain that they might live past 121 and considered it an "inferior product."
Prosper - If the premiums are paid in full and on time, the coverage is guaranteed until age 121 even if the cash value reaches $0. The COI increases with age. The question is - what does a partcipating policy with premiums paid up in 15 years cost versus a straight no-lapse UL? 5x the price? 8x?
Xrac - By the time you are ready to use it, you'll have a good chunk of money, but will you be healthy enough to get a good risk classification?
Do you have an example of the guarantee? All of the illustrations I've run show the death benefit going to $0 at age 121. Many policies become paid up at age 100 (even if coverage continues until 121), but generally speaking, the cash value would be paid out. You would need to look at the carrier-specific illustration to get an exact answer. I've never had a client complain that they might live past 121 and considered it an "inferior product."
Prosper - If the premiums are paid in full and on time, the coverage is guaranteed until age 121 even if the cash value reaches $0. The COI increases with age. The question is - what does a partcipating policy with premiums paid up in 15 years cost versus a straight no-lapse UL? 5x the price? 8x?
Xrac - By the time you are ready to use it, you'll have a good chunk of money, but will you be healthy enough to get a good risk classification?
The answer is that it costs less because more of the premium paid is sitting sitting as cash value by that time.
All I have to say about UL is AAL 1980s and Thrivent today.
If my prospects can cash flow it and they have UL, I replace it everytime once I show them the light.
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Originally Posted by nka245
I want to know WHY an IMO wants an agent agreement! Why would you go and work supposedly as an independent agent and end up being captive? Crap, if you want to be captive just go somewhere and at least get the ramp up salary.
I do too. The guy you told to call me told me said he was interested in life contracting? Needless to say I will not be calling him back. I told you specifically I was interested in getting more leads automatically and writing bigger cases.
Last edited by ProsperSBC : 03-07-2009 at 08:28 AM.
Reason: Posts merged
Northwestern Mutual Life = Has to be the most hyped, overrated, overpriced, "I'll write two life policies on you, not one (so I can get my bonus)" company out there. These guys write increasing premium term policies on top of overpriced whole life garbage to get their submitted cases bonuses. Unethical to the core. Some of their agents bleed green, they must be the only company that is solvent enough these days to pay claims....because 'mutual' companies are the only companies that are stable these days - don't you know? Total B.S.
Owning Northwestern Mutual contracts myself as well as having access to their products for my clients, I have to say your post healthguy is the most ridiculous and uninformed that I think I've ever seen on this board. Sounds like you should stick to the slinging health insurance because you don't seem to understand the life insurance industry.
NML's home office, for production purposes looks at these "companion policies" as one contract and one sale. furthermore, knowing anything about Northwestern's conservative nature, there are no bonuses or trips to qualify for. Reps go to the companies regional and annual meetings on their own nickel...the company doesn't pay for a thing.
"increasing premium term" your referring to is actually annual renewable term. IT IS A MUCH BETTER CHOICE FOR CLIENTS UNDER 45 THAN LEVEL TERM! We all know that with level term your paying more than the true cost of the coverage in the first ten to cover the higher cost in the second ten. for those under 45 annual renewable is "cheaper", thus the rep makes LESS commission than if he would have sold the level 20. Next, what if the client has a level 20 and becomes uninsurable towards the end of the 20 years? NML's level 20 product (like many others) is only convertable for the first ten years....so your screwing them if their health goes south.
Finally, that fact that NML's commission rate on all term products is 50% goes to show that anyone who sells is it obviously not "bleeding green"...they could make 2 1/2 more money somewhere else.
It's called building a life insurance portfolio Healthguy. Get the client the amount of permanent insurance that makes sense for their situation now and fill in the rest of their need with term insurance that is convertable until age 75. That way WHEN (not if) their situation changes you've given them the right tools that are flexible enough to meet their changing needs. Only recommending either all term or all permanent coverage (ul/variable/whole) to clients in my humble opinion is not giving the clients all the options.
By the way, you might want to grab the March 17th issue of Fortune Magazine off the newstand. Life & Health industry CEO's recently ranked NML "most admired company" in the Life/Health insurance business for the 27th year in a row.
There is a big difference between sharing your opionion and plastering false information in public forums. One is sharing your thoughts/experience the other is lying.
You were conned into buying a permanent protection for yourself and your family? May the agent burn in hell forever. Out of curisority who are "they" that keep all that left over $ after returning you a small portioned dividend? You should consult your local Primerica agents. They always have your best interest in mind and hate NWFN as much as you do if not more.
Franz...my thoughts exactly.
Niceguy...couldn't you find one unethical moron in any company within the life insurance industry?! Letting an agent define your opinion of the company as a whole is pretty ignorant.
Way to switch from permanent to term.....you took what was a guarantee to pay and switch it to a product where your betting with the insurance company
Are the guarantees as solid in the UL? Or is it just a masked yearly renewable term with a sub account and the cost of insurance is rising every year?
Can you show me one life policy that isn't yearly renewable term? No matter what you call it, UL, WL, SPWL, SPUL, whatever, the basis of coverage is term!
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Todd R. King
800-590-7207
540-400-6275
888-748-3978 Fax
Do the right thing because it's simply the right thing to do.
Do you have an example of the guarantee? All of the illustrations I've run show the death benefit going to $0 at age 121. Many policies become paid up at age 100 (even if coverage continues until 121), but generally speaking, the cash value would be paid out. You would need to look at the carrier-specific illustration to get an exact answer. I've never had a client complain that they might live past 121 and considered it an "inferior product."
Take a look at Lincoln National, Hancock, and North American to name a few.
The answer is that it costs less because more of the premium paid is sitting sitting as cash value by that time.
All I have to say about UL is AAL 1980s and Thrivent today.
If my prospects can cash flow it and they have UL, I replace it everytime once I show them the light.
Can you cite an example of what something like $1 Million for a healthy 50 year old male would cost in whole life terms paid up in the 15 years you are referring to?
Originally Posted by insuranceexec
Take a look at Lincoln National, Hancock, and North American to name a few.
I just looked again at Lincoln's LGUL and didn't see what you were talking about - it just goes on about the death benefit being guaranteed until 121 even with $0 cash value. Can you post a link? I'd like to take a look at the specific info you're referring to.
The answer is that it costs less because more of the premium paid is sitting sitting as cash value by that time.
All I have to say about UL is AAL 1980s and Thrivent today.
If my prospects can cash flow it and they have UL, I replace it everytime once I show them the light.
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I do too. The guy you told to call me told me said he was interested in life contracting? Needless to say I will not be calling him back. I told you specifically I was interested in getting more leads automatically and writing bigger cases.
Whoa, there, we don't ask anyone to contract with us. Life contracting is the contracting with the carriers, not with us. Don't get it wrong. We do have leads and we have carriers. We don't hold anyone captive so obviously you misundestood something. Of course we would ask you to contract with the carriers with us if you want access to our leads. We're not a lead company.
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Louise Jackson-Marquez
Jackson Financial
direct: 214-927-6546
CFP83: Nobody cares that NWML is a 'hallowed' and respected company in the industry. Should I take my shoes off when entering your green carpeted offices? Life insurance doesn't have to be pretty, all it needs to do is pay claims. Also, the argument that IPT is somehow a good value? Is paying less for term initially and having the wheels fall off the policy later a good idea? IPT forces your clients into buying WL, which is the NWML mantra. Not everybody needs or wants to convert to WL. Many people underinsure and overpay for WL. Most of the 'common folk' I sell to want guarantees and a simple promise that their life insurance costs will never become unaffordable, which is what IPT does - makes for a useless policy unless its converted well before the term on the IPT expires.
I just looked again at Lincoln's LGUL and didn't see what you were talking about - it just goes on about the death benefit being guaranteed until 121 even with $0 cash value. Can you post a link? I'd like to take a look at the specific info you're referring to.
I am assuming that by "LGUL" you are referencing the LifeGuarantee Universal Life. With that being said if you will look under Section A (Understanding Your Illustration), 1st paragraph, of the actual illustration it will say:
"LincolnLifeGuarantee UL provide life insurance with the ability to have cost-effective guarantees for life through the Coverage Protection Guarantee. Premiums are payable until the insured's age 121. If the policy is in force at that time, the policy is guaranteed to continue in force to the death of the insured, unless otherwise surrendered. The death benefit option in effect may not be changed after that date and the following changes will occur: no further premiums may be paid, monthly deductions will cease, and loans and partial surrenders can continue."
This statement has been taken form an actual illustration; or feel free to call Lincoln direct.
Meaning the end result will be a death benefit to the beneficaries; not the cash value. I hope this helps.......
Has anybody had any bad experiences with a certain company or agent?
You mean besides Tyrone Clark? Or American Investors Life? Or Kentucky Central Life? Or Mid Continent Life? Or Stan and Jeff Norman? Or Most Choice? Or Cold Solutions? Or Larry Klein and NF Communications? Or Jeff Bangerter? Or a dozen other people and companies just like them?
Anyone that has been in the business for 5 years or more has been screwed over by a number of marketing organizations, lead companies, and insurance companies.
Fortunately the good people way out number the bad. A lot more people have helped me then screwed me over the years.
I am assuming that by "LGUL" you are referencing the LifeGuarantee Universal Life. With that being said if you will look under Section A (Understanding Your Illustration), 1st paragraph, of the actual illustration it will say:
"LincolnLifeGuarantee UL provide life insurance with the ability to have cost-effective guarantees for life through the Coverage Protection Guarantee. Premiums are payable until the insured's age 121. If the policy is in force at that time, the policy is guaranteed to continue in force to the death of the insured, unless otherwise surrendered. The death benefit option in effect may not be changed after that date and the following changes will occur: no further premiums may be paid, monthly deductions will cease, and loans and partial surrenders can continue."
This statement has been taken form an actual illustration; or feel free to call Lincoln direct.
Meaning the end result will be a death benefit to the beneficaries; not the cash value. I hope this helps.......
It does help - I'll have to take a look at it. I believe the illustration shows the death benefit going to $0 at age 121, but will surely double check on that. Never said I was perfect.
It does help - I'll have to take a look at it. I believe the illustration shows the death benefit going to $0 at age 121, but will surely double check on that. Never said I was perfect.
Remember it correlates to the "Coverage Protection Guarantee." I would never hold you to a standard of being perfect; as I would hope you would not hold me. Have a good day Sir.
Finally, that fact that NML's commission rate on all term products is 50% goes to show that anyone who sells is it obviously not "bleeding green"...they could make 2 1/2 more money somewhere else.
I don't want to get into an argument and I have never Seen NML commission structure but I bet you are leaving something out like I bet the policy pays renewals of somewhere in the 5% range to year 10 or so...Like NYLs did meaning there is still 100% commission on the table as well as the fact of expenses bonus and overhead so comparing the 50% commission rate of a captive to say 100% an independent gets with no renewals is a like sneeky.
NML does receive renewals over several years. My friend told me that they sell increasing premium disability insurance to people and then in 13 months they go back and sell a level premium di policy to the same person. They do this because it counts as another "life" sale and they get paid a second time without replacement. They were told to not even show the level premium when they first sold the DI so they could get another sale. He said the commission on WL there was also ranges from the 82% to 70% range with renewals. When you see an agent from NML, ask them how many "LIVES" they sold last year and how many ribbons they got. Thats all they care about.
YES! After reading everything about NAA I tried to just disappear from them. Didn't work!
A client called me wanting to switch to a better policy than Forester's Non-Med. He was going to go with another agent but gave me first chance.
I stopped writing for NAA 4 months ago and was not about to write thru them again (55% Commission). When My manager from NAA found out I wrote it somewhere else he freaked out, started cussing and called me a F***king P**sie. I was surprised, but, I should have expected it. After all he was trained by Andy.
If someone ever tries to recruit you from NAA, RUN!!
.......Yes! One at Senior Solutions (Pyramid). He was my GA, was paranoid, and owes me money......When I say these guys owe me money it was money outside of a commission for stuff I sold them (autoparts and office furniture).
I ran into the GA I wrote about above about 6 weeks ago in a restaurant. It was the first time I had saw him in 3-4 years. Before he left the restaurant he walked over and gave me a check for the $1,000 he owed me. I was stunned. I believe that the Holy Spirit must have been dealing with his conscience.
Re: Bad Experiences with Agents
I believe that the Holy Spirit must have been dealing with his conscience.
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