Definitions: Whole Life Insurance Vs Permanent Life Insurance

[Robert Barney]

I feel the need to start a new thread on this topic.

I have long considered the terms "Whole Life Insurance" and "Permanent Life Insurance" to be synonymous. On another thread I have run into the argument that permanent insurance is a broader definition to which whole life insurance belongs. Whole Life is one of many forms of permanent life insurance, and that there are other forms of permanent life insurance that are not whole life.

More specifically, it has been argued that no lapse UL policies are not whole life policies but are instead permanent policies.

Having done some searches on the web, I see other examples of my thinking, that the terms are the same. In other cases I see definitions more consistent with the above.

So which is it?

Is whole life insurance permanent insurance, and is permanent life insurance whole life insurance?

Is Universal Life whole life insurance?

Is Universal Life permanent life insurance?

What say you?

 

[Death Cab For Tootie]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Is whole life insurance permanent insurance, and is permanent life insurance whole life insurance?

Whole life insurance is permanent. Not all permanent life insurance is whole life insurance.

Is Universal Life whole life insurance?

Absolutely not.

Is Universal Life permanent life insurance?

Absolutely it is.

What say you?

For a guy who held his license for 20 years, this is beyond elementary. This is not me being pedantic, this is Insurance 101.

If you're offering personal life insurance advice without a license, you're breaking the law. I would tread lightly if I were you.

 

[scagnt83]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Here is a presentation thats accessible through LFGs web portal, its a presentation from national underwriters though.

Its called "Understanding Life Insurance". Its an ok presentation, your question is answered on page 6.... I would suggest you read the whole presentation though...

 

[scagnt83]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

I have used the terms synonymously for years and I think I am witnessing a hair splitting re-definition. But so be it. I have begun a new thread to get to the bottom of it.

Again, WL is a specific type of product. It has pros/cons, and features that a GUL, VUL, No lapse UL, IUL, etc does not have.

Those features are what makes it appropriate in certain situations over UL products.

Both UL and WL are permanent, since they stay with you permanently; thus the term "Permanent Insurance".

 

[Guest]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

If you're offering personal life insurance advice without a license, you're breaking the law.

Well, I think he can offer advice here in this venue without a license as he is not talking to clients. Am I right? (There must be someone here who knows.)

However, as I understand it, it would not be "kosher" for those of us who have an insurance license to offer "advice" about equities without a 6 or 7 or 63? True?

What I'm a wee bit surprised about is that someone would sell software to licensed agents without having a license. Of course people who are not MDs sell software to doctors so I guess it is not a big deal. What does it cost and how hard is it to get a state insurance license... for someone with the experience he has? Seems like a no-brainer to me.

I have to agree with one thing. Since he does not have a license and thus does not have to take CE classes (I assume most states require this) perhaps people will think he is a bit out of the loop on some issues that pertain to the industry?

I personally have not found that to be so. I think Robert is "up" on all the issues... but YMMV.

I'm not sure I'd be comfortable with a medical diagnosis (or a course of treatment) from someone who had not been a licensed doctor for the past ten years. But again... YMMV.

 

[Death Cab For Tootie]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Al, Robert has stated several times he has counseled individuals on life insurance. To what extent, I don't know. What he has implied would be considered advice and illegal if he doesn't have a license.

 

[LGilmore]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

What robert has to understand is for universal life to become "permanent" (gul) in a similar way to WL, it has to have a rider attached to it. It is not the original nature of the product.

 

[Death Cab For Tootie]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Even still, GUL does not offer non-forfeiture options that WL offers. If there is a GUL product out there that does, I'm all ears. However, generally speaking that isn't how GUL is designed.

 

[Guest]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

Al, Robert has stated several times he has counseled individuals on life insurance. To what extent, I don't know. What he has implied would be considered advice and illegal if he doesn't have a license.

I guess.... IANAL (but I did spend some time in law school... never came close to finishing.)

Bottom line, he is a vendor and his main goal it to interest agents into trying his quote engine and then getting them to buy it. Nothing wrong with that. It's a good quote engine and for those who want to pay the price... they should.

He IS a royal PITA, but I find what he says about life insurance to be accurate... but I don't have the experience level he has... or perhaps you have... so I'm easy to convince! When I want the "the truth" I call Dave020 or Newby or Nick/Rick at ILIAA (where I'm a member.... their worst nightmare!! )

 

[Death Cab For Tootie]

Re: Definitions: Whole Life Insurance Vs Permanent Life Insuranc

I don't know what IANAL means, but whatever. If I were you, I would think twice about hitching your life insurance wagon to Robert. He's been unlicensed since '97 and gets mixed up when it comes to Universal Life and Whole Life. I do agree with Robert on giving clients maximum coverage, however. So he's not totally off his rocker. But at the end of the day, if you're comfortable receiving advice from someone like, say, Rick, I think that's the way to go.