Paid Up GUL Question

[mwpuck01]

Thats a big thing is to make sure the client knows not to take policy loans.

I could write a 20pay on my self for a total of premium outlay of 28,880 or a UL and illustrate it as i have and pay 20,851 and save the other 8,000.

As long as it is illustrated guarenteed and the client understands the plan and its all in writing i think it is a better deal.

That is what i like about this forum being able to talk and learn from other experts, usually more experienced than I am.

 

[pfg1]

My understanding so far with multiple conversations, back and forth and now receiving new policies out of the blue is that based on that example, the client would pay until age 65, where as coverage is guaranteed to 121 since it wasnt dialed down. Probably will make one last phone call and see if I can get everything answered. Getting kind of ridiculous.

Im glad Im not the only one getting a good schooling out of this DHK. I dont know how many hours Ive spent doing research and watching videos.

One nice feature on that new Anico GUL is the ROP feature. Client has the policy for 20 yrs and has an unexpected windfall and no longer needs the death benefit (or whatever the reason) the can get all their premium $ back at yr 20 and 25.

 

[NewbieNewbie]

I would say you really do not want to takes loans on amy GUL. While technically you can get away with it. It is a recipe for disaster.

 

[scagnt83]

I would say you really do not want to takes loans on amy GUL. While technically you can get away with it. It is a recipe for disaster.

Agreed. The only thing that should be mentioned about Loans during a GUL sale is to tell them "This policy has a tiny Cash Value that is not meant to take Loans from. Loans will void the Guaranteed DB."

Loans should not even be proposed as a possibility for GUL. If they ask and want more of an explanation then you can tell them about how Loans void the Guarantee until they are paid back + interest.

GUL should be treated and sold as a lifetime term policy.

 

[Newby]

Agreed. The only thing that should be mentioned about Loans during a GUL sale is to tell them "This policy has a tiny Cash Value that is not meant to take Loans from. Loans will void the Guaranteed DB." Loans should not even be proposed as a possibility for GUL. If they ask and want more of an explanation then you can tell them about how Loans void the Guarantee until they are paid back + interest. GUL should be treated and sold as a lifetime term policy.

On GULs do you advise to not select the automatic premium loan feature?

 

[scagnt83]

My understanding so far with multiple conversations, back and forth and now receiving new policies out of the blue is that based on that example, the client would pay until age 65, where as coverage is guaranteed to 121 since it wasnt dialed down. Probably will make one last phone call and see if I can get everything answered. Getting kind of ridiculous.

Im glad Im not the only one getting a good schooling out of this DHK. I dont know how many hours Ive spent doing research and watching videos.

Im not sure what is ridiculous about the situation... the illustration is crystal clear.

I cant believe how many times I have said this recently on this Forum.... but the Guaranteed Column of the Illustration is GUARANTEED.

If the column on the illustration you are looking at says "Guaranteed", and you pay the Premium shown on that illustration..... then you will get the exact Cash Value and Death Benefit that Guaranteed side of the Illustration shows.


Years ago some GULs would have both a Current and a Guaranteed. Now it seems most all GULs only have a Guaranteed Column since interest rates are so low.


As far as the GUL illustration that you posted goes. If you pay the Premiums shown and do not take Loans, then you will get the DB shown... Guaranteed.


Guaranteed on an illustration means Contractually Guaranteed.

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On GULs do you advise to not select the automatic premium loan feature?

That is not a feature of most UL policies. That is a WL feature.


UL essentially takes a withdrawal automatically if you miss a Premium payment. There might be one or two oddball ULs out there offering that feature. But it is a pointless feature to have on a UL, especially a GUL.


More to the point of our conversation, if you are selling a GUL to someone that you are worried might miss some premium payments; then you should probably consider a Non-Par WL instead (& definitely check the auto premium loan option).

Some GULs do give a 1-2 month Grace Period to make up the missed Premiums. You can usually always make up the missed Premiums, but it might require a bit more than what you missed to get the Guarantee on a GUL back (because those premiums would have been earning interest had they been paid).

 

[BYSFG]

Im not sure what is ridiculous about the situation... the illustration is crystal clear.

I cant believe how many times I have said this recently on this Forum.... but the Guaranteed Column of the Illustration is GUARANTEED.

If the column on the illustration you are looking at says "Guaranteed", and you pay the Premium shown on that illustration..... then you will get the exact Cash Value and Death Benefit that Guaranteed side of the Illustration shows.


Years ago some GULs would have both a Current and a Guaranteed. Now it seems most all GULs only have a Guaranteed Column since interest rates are so low.


As far as the GUL illustration that you posted goes. If you pay the Premiums shown and do not take Loans, then you will get the DB shown... Guaranteed.


Guaranteed on an illustration means Contractually Guaranteed.

Yeah. Like I said, I more or less confused myself with conversations between agent support. One person says one thing, the other says another. Even got one who tried helping me using a totally different illustration software then the one mentioned, refusing to change. Then getting policies where accompanied illustration doesnt match proposal just added to the confusion.

Between support saying,

"I dont even know how you did that"
"I don't even think thats possible"
"I dont think you want to set it up like that"
"That would make it like a 30 year term, why would they only pay up to age 65, the minimum guaranteed is to 95"

Someone finally said what you said and confirmed it with their illustration software after painting a picture, step by step of what each little box and entry referred to in the illustration. Also got an accompanied illustration to match the proposal, so thats good.

Oh, the ridiculous part was referring back the various answers from support. Its like asking a kid who got into trouble at various intervals and the kid keeps giving you a different story.

In short, don't doubt the Scagnt

 

[scagnt83]

Oh, the ridiculous part was referring back the various answers from support. Its like asking a kid who got into trouble at various intervals and the kid keeps giving you a different story.

In short, don't doubt the Scagnt

Hell, I doubt myself all the time! lol

That is just a fairly basic and universal concept when it comes to illustrations. What makes up the Current column of midpoint can vary from carrier to carrier. But when something says Guaranteed on an illustration, it is contractually/legally Guaranteed. There might be some criteria imposed on that Guarantee (like not taking out Loans), but it is Guaranteed.

But you have learned a very valuable lesson.... there are some extremely incompetent inside sales reps out there.

At least you are catching this before going to the client. I recently stuck my foot in my mouth over something an inside sales rep told me. It wasnt my fault, but it still did not look good to the client im sure.

 

[pfg1]

I certainly learn alot on a regular basis as well. One thing I've learned for sure... the AGENTS are the one's who figure things out, not the internal folks. I've gotten more bad advice or not so accurate info from home office people than I thought possible. That is one reason I like to learn the illustration software systems myself if possible. Then I only have me to blame when I screw up