Just Try to Understand Universal Life...

Robert Barney · 11-05-2009, 02:59 AM

Originally Posted by Franz Kafka

Got it. Didn't run it at no lapse premium. Yes, I'm looking at $2012. If it has to be NL UL I would definitely go with limit pay. 10 Pay looks real good, too. $3,347 was for guaranteed CSV up to age 75. Apparently actuaries want you to buy the no CSV stuff (wonder why).

It's cheaper because it's lapse subsidized. If you quit, they keep the money.

But then who buys a no lapse UL policy planning to quit?

As to no lapse, limited pay. It's the only way to go.

NoFault · 11-05-2009, 09:32 PM

Originally Posted by NoFault

What if you choose a "level" premium with Option 2, this will not raise the premium right?

I got Assurity, Aviva, Forester and WCL and just really want to understand this UL product, before introducing them to clients.

No one has answer my question yet!!! Help a newby here...

Full Throttle · 11-05-2009, 10:26 PM

No one has answer my question yet!!! Help a newby here...

I answered it already. The answer is "correct", but make sure you understand what this does to the policy. See previous posts.

WinoBlues · 11-05-2009, 10:53 PM

If I understand the question. I say the answer is Yes it will increase the premium.
Given the same Face and guaranteed term. The option two premium will be higher from the jump.

Find the company that will allow Option 2 on a GUL, not all do. Then run an illustration with 1, then 2. Both guaranteed lifetime.