Looking For a Whole Life Policy

This is exactly why they have a program called "Buy Term and Invest the Difference You Would Have Paid for Permanent". Please use it because it was invented for people just like you. Every engineer that I know likes to invest in the market and all think that they have a system. Not one of them have come out ahead through the thick and thin. You see, investing is NOT a science and that's something you engineers will never grasp. JMO
 
I know plenty of Engineers who don't buy term and invest the difference. It just takes a little more time for them to get comfortable.
 
I suggest people shoot a PM to healthagent if they want to her a personal story about how the market has failed someone over a longer stretch.
 
You also might want to consider some online agent education websites as I use one that doesn't charge you, unless you take the exam. You might find what you're looking for there as well.

What site are you referring to, Mr. Gilmore?
 
You can read through all of the first couple of classes for LUTCF and I believe CLU from the American College.
 
Bntrs,
Thx for taking the time to explain some of the items for me.
How do I go about crafting a policy for some obvious and I am sure many 'not so' obvious life demands?
The beginning stages seem fairly simple: estimated amt of death benefit, Amt of WL I can afford yearly for a 10 year period including potential life shocks, and that's about it.
I think loan ability is important, I think DB increasing over the years is a positive, I guess. Not sure it's needed though, if the policy is structured correctly from the front end? Cash value going up means higher Amt to borrow or take out as income although risk seems to be you get a big cash level, and ultimately, if death occurs during last 3 hrs of employment, it seems to help the insurance company the most as the difference b/t cash value and DB is lowest it prob will ever be.
These things seem so hard to project out over decades, what tools are available to help make sense of these decisions?
It seems easy to jump in, v difficult to get out, and not sure about making tweaks adjustments along the way.
 
Blue,

My typical approach is contemplating an amount that will go into the policy per year. I then spend a little time playing with base WL db and term blend minimizing base WL with term blend. There are reasons for having higher base WL db, mostly having to do with increased contributions levels much later on in the policy.

The nice thing about this design is it keeps the required base WL premium low, while giving you the option to put more money in when you have it.

PUAs have immediate cash values, so this also helps make more immediate money available.

Concerning the total db, there is a choice, you can have a level db or an increasing db from day one. The day will most likely come when the PUA db equals the total (WL + Term) db at which point the term portion would disappear completely and the total db would begin increasing. It can also be designed to have the total db increase prior to this. The Term portion does have a cost (a very tiny once since it's renewable One Year Term) so this has certain cost implications and it depends on which objective is more important (db or cash, rarely do I find people who are worried about increasing db's from day one).

Yes it's true that the net amount at risk is decreasing, which may seem like a better deal for the insurance company, but usually the focus is more about availability of more cash, plus we're talking about term insurance that is a fraction of the cost of regular term insurance (unless we're talking about a certain quiet company from the Midwest).

I'm not sure where the confusion is with respect to projections, but if you elaborate on that a bit more, I'll do what I can to help. The tools I suppose are illustrations. We've yet to see on in this thread, which is a bit surprising. I suppose I could get around to posting one.

It's not potentially as easy to jump in as you might assume. There's definitely a process that takes some time and requires a hefty amount of paperwork.
 
UIECE.com: Insurance Continuing Education

What site are you referring to, Mr. Gilmore?


this one. for CE. If the guy wants the nuts and bolts, he can start here.
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"I think loan ability is important,"
with most you just make a phone call and 3-5 later it's there. Quicker now with wire transfer if you want to go that route. You can also surrender PUAs if the idea of a loan is unappealing.

" I think DB increasing over the years is a positive, I guess. "
Helps the DB against inflation and helps against a MEC policy.

"Not sure it's needed though, if the policy is structured correctly from the front end?"
Depends on the individual and what they want.

"Cash value going up means higher Amt to borrow or take out as income although risk seems to be you get a big cash level, and ultimately, if death occurs during last 3 hrs of employment, it seems to help the insurance company the most as the difference b/t cash value and DB is lowest it prob will ever be. "

This is where you get me, is this really a single sentence? last 3 hours of employment?

If round a boutly, you're asking how does a large loan effect the policy upon death? They subtract the loan from the death benefit.

What are you really asking here? and be as simple as you can the sentence above doesn't really make sense, What are you asking? And I'm really not trying to be a jerk, it's just that some of your questions aren't very clear.
 
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