Help I'm Trying to Write a Blended Whole Life for a Client

jboussea

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He's 27 years old ...looking for about 500k ... I designed a 250k whole life with a 10 year term for 250k as well .. (expiring after 7 years)

As a new agent, this would be my first blended policy .. I just don't want to make a big mistake. Am I on the right track? Is there a carrier that's best for blended design.

FYI .. I 'm using FOrester's for illustation purposes.. but I will be comparing it to other carriers as well.
 
In most cases, a blended policy is referring to a policy where the objective is to maximize cash values. It's not just a base WL + term policy. It's a base WL + PUAR (paid up additions rider) + term.

Keep playing with the illustration until you get what you're trying to accomplish for the client based on the given budget.

You might see that a $100k WL + $400k term + max PUA might be the better fit. Just keep playing with the numbers. Don't forget that the term insurance is simply more inventory to convert for more sales down the road.
 
As DHK said, a blended policy is using extra premiums to purchase Paid Up Additions. You add on Term so that the PUAs do not cause the policy to MEC.

Does Foresters even pay dividends on their WL? I thought it was a Level DB product?
 
What those guys said.

I did not know Foresters had a traditional Whole Life. I know they have/had a UL/term combo plan.

I use Ohio National for the concept you are talking about. As David said the term is inventory. Few companies have good conversion options. ONL is one of them. I am sure there are others.

He is only 27. He has a lot of years ahead of him. I would want as many guarantees as available.
 
In most cases, a blended policy is referring to a policy where the objective is to maximize cash values. It's not just a base WL + term policy. It's a base WL + PUAR (paid up additions rider) + term.

Keep playing with the illustration until you get what you're trying to accomplish for the client based on the given budget.

You might see that a $100k WL + $400k term + max PUA might be the better fit. Just keep playing with the numbers. Don't forget that the term insurance is simply more inventory to convert for more sales down the road.


I failed to mention the pua .but yes thatd s included..the breakdown was 214 for the whole 17 for the term and 168 for the pua...what do you think of the ratio..

Are there any disadvantage s to increasing the term portion

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As DHK said, a blended policy is using extra premiums to purchase Paid Up Additions. You add on Term so that the PUAs do not cause the policy to MEC.

Does Foresters even pay dividends on their WL? I thought it was a Level DB product?

They be been paying around 6% for at least the past 10 years

..does foresters not have a good reputation.l? I need to show a list of all my carriers and your opinions

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What those guys said.

I did not know Foresters had a traditional Whole Life. I know they have/had a UL/term combo plan.

I use Ohio National for the concept you are talking about. As David said the term is inventory. Few companies have good conversion options. ONL is one of them. I am sure there are others.

He is only 27. He has a lot of years ahead of him. I would want as many guarantees as available.


What do you mean by guarantes? Am I on the right path?
 
In the Dividend paying WL market, no, Foresters has basically zero reputation at all. There are carriers that have been paying 4%-8% Dividends for the past 150+ years... 10 years is meaningless in the WL world. Im sure Foresters has paid it longer than that, just making a point.

As far as the Base/PUA ratio, I usually have 50%-200% more PUA than Base Premium on most policies I design.

Carriers to look at would be Mass Mutual, Penn Mutual, Guardian, Ohio National Lafayette, SBLI, Assurity.
 
In the Dividend paying WL market, no, Foresters has basically zero reputation at all. There are carriers that have been paying 4%-8% Dividends for the past 150+ years... 10 years is meaningless in the WL world. Im sure Foresters has paid it longer than that, just making a point.

As far as the Base/PUA ratio, I usually have 50%-200% more PUA than Base Premium on most policies I design.

Carriers to look at would be Mass Mutual, Penn Mutual, Guardian, Ohio National Lafayette, SBLI, Assurity.

Not to hijack the thread, however...

DHK has mentioned Assurity before as well. I have never looked at them outside of term and SIWL. is this the Lifescape WL? What is their strength?
 
Assurity has a decent WL - the Lifescape WL - and now has their joint first-to-die WL in CA now - as of June 1st.

With Assurity, it's easy to do a "Max CV for Accumulation" illustration based on the premium given and various riders selected.

Assurity is an A- rated company by A.M. Best, but stable outlook.

A.M. Best's Consumer Insurance Information Center

For me, Assurity's disability income rider (up to $3,000 per month depending on face amount) is a great rider for families. Even in CA where it will be coordinated/reduced by 40% (I think) with state disability benefits, it would generally be enough to keep them in their home.

Assurity is a direct-recognition company in regards to dividends, but if you're borrowing and paying at least the annual interest due out of pocket, it still illustrates very well.

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Oh, Assurity's lowest face amount is $10,000... and does not require medical underwriting up to $149,999 total face amount if under 60 years old.

If you're adding a term rider, you'll probably be doing a medical exam.
 
In the Dividend paying WL market, no, Foresters has basically zero reputation at all. There are carriers that have been paying 4%-8% Dividends for the past 150+ years... 10 years is meaningless in the WL world. Im sure Foresters has paid it longer than that, just making a point.

As far as the Base/PUA ratio, I usually have 50%-200% more PUA than Base Premium on most policies I design.

Carriers to look at would be Mass Mutual, Penn Mutual, Guardian, Ohio National Lafayette, SBLI, Assurity.

do you know why they don't have a great reputation ... The numbers look good. 10 year I what they have to publish. According to them. is that not true. Is there a place where I can see a longer history of many different insureres. Also foresters

how easy is it to sign up with any of the companies you mentioned.
 
do you know why they don't have a great reputation ... The numbers look good. 10 year I what they have to publish. According to them. is that not true. Is there a place where I can see a longer history of many different insureres. Also foresters

how easy is it to sign up with any of the companies you mentioned.

The numbers look good compared to what? Only way to know that is to compare it to the competition. Good compared to Mass or Penn or Guardian?

Ask them how long they have paid a dividend or had a dividend paying WL policy. (I have no clue)


Also, they are a Fraternal Carrier. The oversight and state provided consumer safety nets are not the same for them. I would not put a significant amount of my personal money into a Fraternal Carrier.

They also have just an A rating when the competition has AA or AAA.
 
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