GUL Vs Flexible Premium UL

[crazyme]

I am a licensed agent and I am also in the market for some permanent life insurance. I am looking at purchasing either a guaranteed universal life product or a flexible premium UL. I am in my early 50's. I have not sold a lot of permanent life insurance over the past several years, but I have always used the GUL and I sell it as a term to 100.

I recently compared the cost of the two. The GUL will cost me about $130/month for $100,000. The Flexible Premium UL will run about $30 more/month at $160/month. Obviously, there is no cash value build up in the GUl. The flexible premium UL does build up pretty good cash value over my life expectancy, about $60,000 by the time I am 80 years old and I know I can borrow against the CV if I needed to, however, I don't plan on accessing the cash in the Flexible premium because the purpose of the life insurance is solely for the DB.

I am looking for feedback on the pros and cons of each option.

The interest rate for the flexible premium right now pays 5% so I could build some some pretty good cash value over time compared to other placed to put my money. The GUL floor for my company is the $100,000 so I would not have the opportunity to lower the face amount, whereas the floor on the flexible premium is $25,000. Any other advice on which product to choose would be appreciated.

 

[rousemark]

I am a licensed agent and I am also in the market for some permanent life insurance. I am looking at purchasing either a guaranteed universal life product or a flexible premium UL. I am in my early 50's. I have not sold a lot of permanent life insurance over the past several years, but I have always used the GUL and I sell it as a term to 100.

I recently compared the cost of the two. The GUL will cost me about $130/month for $100,000. The Flexible Premium UL will run about $30 more/month at $160/month. Obviously, there is no cash value build up in the GUl. The flexible premium UL does build up pretty good cash value over my life expectancy, about $60,000 by the time I am 80 years old and I know I can borrow against the CV if I needed to, however, I don't plan on accessing the cash in the Flexible premium because the purpose of the life insurance is solely for the DB.

I am looking for feedback on the pros and cons of each option.

The interest rate for the flexible premium right now pays 5% so I could build some some pretty good cash value over time compared to other placed to put my money. The GUL floor for my company is the $100,000 so I would not have the opportunity to lower the face amount, whereas the floor on the flexible premium is $25,000. Any other advice on which product to choose would be appreciated.

Want permanent insurance? Buy whole life.. JMHO

 

[WinoBlues]

Going to break down to your wants and needs.

Being able to lower the face, premium and payment duration are good options. I would also compare the same premium into the GUL and search for an early paid up date. Then compare that extra lifetime income to the cash values of the UL.

Sounds like you may be captive at the moment. I would still compare other company's products.

If you add whole life into the comparison, compare with the same premium and face also.

Sent from my Nexus 7 using Insurance Forums

 

[LGilmore]

if your choices are between UL and GUL, go with GUL. The cash value of a UL is sort of a mouse trap for you. Take that cash out and you've got a problem with your UL a short while later. At this point in your life, it is better to simply use a GUL and find another choice for the extra premium to invest in.

 

[BNTRS]

Just for kicks, if you have $60,000 in cash surrender value come age 80, what will your rate of return be?

 

[mcouper]

Lincoln VULone (assuming you're not in NY)....priced close to a GUL, lifetime guarantee if you desire, and cash value growth.

 

[hammerken]

If you are looking for pure DB go with the GUL. If you think you want CV go with WL or IUL. Just my two cents. Like the prior poster said, Flex UL is an accident waiting to happen.

 

[GoCubsGo]

If you are going GUL compare with North American as they go down to 25K.