Large Face Amount Whole Life

Who buys the larger face amount whole life policies?

I routinely sell $5-$25K and have occasionally sold $50K to $100K wls'.

Most of the time when I get a client that is loaded and wants a permanent policy, they settle on a UL, regardless of the discussion on WLs'.

Where is the market for the $250K+ WL policies? Is it in Connecticut?
 
Who buys the larger face amount whole life policies?

I routinely sell $5-$25K and have occasionally sold $50K to $100K wls'.

Most of the time when I get a client that is loaded and wants a permanent policy, they settle on a UL, regardless of the discussion on WLs'.

Where is the market for the $250K+ WL policies? Is it in Connecticut?


Probably because they realize they can get a no-lapse UL with 2-3x the face amount for the same price....
 
Who buys the larger face amount whole life policies?

I routinely sell $5-$25K and have occasionally sold $50K to $100K wls'.

Most of the time when I get a client that is loaded and wants a permanent policy, they settle on a UL, regardless of the discussion on WLs'.

Where is the market for the $250K+ WL policies? Is it in Connecticut?

Large face amount WL isn't bought for the death benefit alone. If you can't give the client another compelling reason to buy, of course they are going to go with UL.
 
Large face amount WL isn't bought for the death benefit alone. If you can't give the client another compelling reason to buy, of course they are going to go with UL.

Yep. I just recently sold a $500k WL policy with a $1.5mm term rider for a client of mine.

An agent I know routinely sells WL in blocks of $1mm of DB. I hope to be him someday....
 
Large face amount WL isn't bought for the death benefit alone. If you can't give the client another compelling reason to buy, of course they are going to go with UL.

For straight death benefit, a UL policy will most often have a significantly higher death benefit up front. However with a good participating whole life policy, in the later years of life, there will be significant death benefit growth through the use of paid up additions.

I frequently sell WL policies in excess of 250k and the reasons are for the guarantees associated with whole life and the flexibility of withdrawals/loans without affecting the cost of insurance. Not to make this a UL vs. WL debate but I find that the type of policy I sell depends on the clients needs. I have found that in most situations, if cash value is a primary goal of the life insurance, then to properly fund a UL, will be similar in premium to a WL/Term blend. My unofficial, very general, with some exceptions-ish rule is UL= Flexibility Now, WL= Flexibility at withdrawal.
 
Yep. I just recently sold a $500k WL policy with a $1.5mm term rider for a client of mine.

An agent I know routinely sells WL in blocks of $1mm of DB. I hope to be him someday....

Thank you for posting. What is the client's age and occupation ? Did he currently have whole life policies?

I've only sold wl to peeps that had no life insurance and were looking for FE, and those that currently had wl and were stacking the polices from time to time in increments.
 
The WL/Term blend policies can explode unless they are heavily funded with PUA riders. Have a client that bought a 50/50 term blend in 91 with annual premium of 65k. Because of decreased dividends and inc mortality, premium this year is 165k.
 
Why are you blending, why not stack the two policies on top of each other? That tends to avoid the problem, and you can convert the term over time.

The WL/Term blend policies can explode unless they are heavily funded with PUA riders. Have a client that bought a 50/50 term blend in 91 with annual premium of 65k. Because of decreased dividends and inc mortality, premium this year is 165k.
 
The WL/Term blend policies are designed to use dividends to buy paid up additions and pay additional premium to purchase paid up additions. The objective is that over time the paid up additions will replace the term portion, however, if projections are lower and if mortality increases, the policy can produce hefty premiums as one gets older.
 
The WL/Term blend policies are designed to use dividends to buy paid up additions and pay additional premium to purchase paid up additions. The objective is that over time the paid up additions will replace the term portion, however, if projections are lower and if mortality increases, the policy can produce hefty premiums as one gets older.

I know what they are designed to do. I'm asking why the person is doing it, since it tends to result in the exact situation you faced.
 
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