AGLA Policy: is It GUL?

[shonceman]

Yesterday I came across a UL policy from AGLA written in Sept of 2009. The lady was 71 at the time, policy is for 25k, planned premium $105.33/mo. Min. premium $89 & change. All the ABR's included. It looks like a GUL, but the policy had fallen apart somewhat, and I couldn't find anything that said that. The original illustration shows the policy staying in force 20 years (at 5.5%), with CV depleted during that year. At the guaranteed 3% it showed both CV & death benefit at 0 after 5 years. I think the middle projection was at 4.25%, which has it running out around year 10 or 11. Maturity date was 2059 (age 121).

My question is whether this is indeed a GUL to 121 as it appears to be. I'll call the company later, but even if they'll give me any info, I'm not sure I trust cust service to necessarily know what they're talking about on this type of policy. If it is guaranteed no lapse, I don't want to replace.

 

[Baseball7]

If the company can't explain the product to the client doesn't inspire a lot of confidence for the client.

 

[pfg1]

A GUL is guaranteed... it can't really fall apart if the premiums are paid on time. Sounds more like you have a UL of some other sort. ?? Call the company, you'll know exactly what you have.

 

[WinoBlues]

Yesterday I came across a UL policy from AGLA written in Sept of 2009. The lady was 71 at the time, policy is for 25k, planned premium $105.33/mo. Min. premium $89 & change. All the ABR's included. It looks like a GUL, but the policy had fallen apart somewhat, and I couldn't find anything that said that. The original illustration shows the policy staying in force 20 years (at 5.5%), with CV depleted during that year. At the guaranteed 3% it showed both CV & death benefit at 0 after 5 years. I think the middle projection was at 4.25%, which has it running out around year 10 or 11. Maturity date was 2059 (age 121).

My question is whether this is indeed a GUL to 121 as it appears to be. I'll call the company later, but even if they'll give me any info, I'm not sure I trust cust service to necessarily know what they're talking about on this type of policy. If it is guaranteed no lapse, I don't want to replace.

>> At the guaranteed 3% it showed both CV & death benefit at 0 after 5 years.

Assuming it also showed her paying premiums through those years it does not sound like a GUL. It sounds like a under funded UL. A term plan would have had better guarantees. Check if she has the last annual report. That should tell you when it will die. My guess would be between the mid point and the non guaranteed point.

I would point out that the policy was never guaranteed to run past the 5 years. Hang them with their own rope. The illustration.

 

[shonceman]

>> At the guaranteed 3% it showed both CV & death benefit at 0 after 5 years.

Assuming it also showed her paying premiums through those years it does not sound like a GUL. It sounds like a under funded UL. A term plan would have had better guarantees. Check if she has the last annual report. That should tell you when it will die. My guess would be between the mid point and the non guaranteed point.

I would point out that the policy was never guaranteed to run past the 5 years. Hang them with their own rope. The illustration.

Thanks. That's what I'm concerned about. She couldn't find her last annual report, so I'm going to ask them to send her an inforce projection.

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If the company can't explain the product to the client doesn't inspire a lot of confidence for the client.

It's not that they can't explain it. It's that I don't trust a customer service phone person to necessarily explain it correctly.

 

[rousemark]

Yesterday I came across a UL policy from AGLA written in Sept of 2009. The lady was 71 at the time, policy is for 25k, planned premium $105.33/mo. Min. premium $89 & change. All the ABR's included. It looks like a GUL, but the policy had fallen apart somewhat, and I couldn't find anything that said that. The original illustration shows the policy staying in force 20 years (at 5.5%), with CV depleted during that year. At the guaranteed 3% it showed both CV & death benefit at 0 after 5 years. I think the middle projection was at 4.25%, which has it running out around year 10 or 11. Maturity date was 2059 (age 121).

My question is whether this is indeed a GUL to 121 as it appears to be. I'll call the company later, but even if they'll give me any info, I'm not sure I trust cust service to necessarily know what they're talking about on this type of policy. If it is guaranteed no lapse, I don't want to replace.

I am pretty sure AGLA did not have a GUL 8 yeas ago..

 

[shonceman]

I am pretty sure AGLA did not have a GUL 8 yeas ago..

I thought they had a guaranteed no lapse premium available on the Quality of Life product. If it's not guaranteed, then this agent did a real disservice! He may have thought he was doing her a favor by replacing her $9000 of whole life, in that he got her more coverage (but also more premium!). But he probably wasn't expecting her to still be as healthy as she is years later. (This lady looks like she's 55-60. She'll be 80 next year.)

 

[rousemark]

I thought they had a guaranteed no lapse premium available on the Quality of Life product. If it's not guaranteed, then this agent did a real disservice! He may have thought he was doing her a favor by replacing her $9000 of whole life, in that he got her more coverage (but also more premium!). But he probably wasn't expecting her to still be as healthy as she is years later. (This lady looks like she's 55-60. She'll be 80 next year.)

They came out with one but I am pretty sure it was after I left.. not before.

 

[WinoBlues]

Thanks. That's what I'm concerned about. She couldn't find her last annual report, so I'm going to ask them to send her an inforce projection.

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It's not that they can't explain it. It's that I don't trust a customer service phone person to necessarily explain it correctly.

Ask them to email "her" the last annual report. You should get that in days. The illustration will be weeks. Better yet see if the csr can pull it up and read it to the client.

Really the illustration and policy is all you need.

 

[shonceman]

Ask them to email "her" the last annual report. You should get that in days. The illustration will be weeks. Better yet see if the csr can pull it up and read it to the client.

Really the illustration and policy is all you need.

I really appreciate your help. I understand that the annual report & policy will tell me whether it's guaranteed, but I need to get an idea of how long it will stay in force if she doesn't make any adjustments. So I got them to mail an inforce illustration to her. I've got to see her again on some other business in a couple weeks. Hopefully she'll get it before that. I'm not really trying to replace the policy. I'm just afraid we might need to "fix" it so it will stay in force until death (or at least closer to it than it appears to be now!).