- 2,452
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?
Starmount "indeterminate Premium Whole Life"
- Thread starter jacobtn
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- whole life
- 5,260
Saw one or two down in Trion a few years ago; haven't seen 'em around lately.
- 24,967
Sounds like graded premium Whole Life. I got an inforce on one today. Are dividends reducing premium?
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- 2,452
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.
- 24,967
The rate could be guaranteed. Increasing but guaranteed.
- 16,880
It's definitely whole life. It just has scheduled rate increases. Stonebridge has a GI WL that does that too. That one is sold by mail direct to consumers.
There are a lot of Prudential modified whole life's out there too. They were sold in the 70's.
- 24,967
Bankers Fidelity has an E-100 that increases every 4 years until policy maturity.The increase on an age 50M NS 10K is $10 annually. The plan starts out $50 per year cheaper than the same coverage the standard WL. so it takes 24 years before it exceeds the WL.
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.
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.
- 24,967
Not to mention the increasing renewals. Just had a dufus try to replace one that I wrote in 1997. He was trying to describe it as an ART. He did not notice that premiums start to decrease, with dividends, in about three more years. Cost him about $3,000 in charge backs.
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