T30 to T80? Good or Bad Idea?

Find out what kind of conversion options are on the 30 year level before you make a decision. Northwestern's t80 is convertible to age 60, so you have a lot of time. Also, see what a "minimum mix" Adjustable comp life policy looks like with Northwestern. It is a form of whole life that has a much cheaper cost. It's also very flexible. See if that fits your situations for the long term instead of renewing term policies into your 60's and 70's.

Most term policies are convertible up to age 70 or 75, some up to age 80. Of the mutual WL companies, Guardian's conversion goes up to age 80 if I'm not mistaken. Nothing like drastically overpaying for your term insurance for the potential conversion option that most will never use, when there are plenty of cheap term policies with good conversion options. Genworth's TermUL guarantees premiums up to age 105 after the term period instead of going up every year to a price nobody would ever pay.
 
Does Genworth illustrate the to age 105 premium?

Thanks

Most term policies are convertible up to age 70 or 75, some up to age 80. Of the mutual WL companies, Guardian's conversion goes up to age 80 if I'm not mistaken. Nothing like drastically overpaying for your term insurance for the potential conversion option that most will never use, when there are plenty of cheap term policies with good conversion options. Genworth's TermUL guarantees premiums up to age 105 after the term period instead of going up every year to a price nobody would ever pay.
 
Does Genworth illustrate the to age 105 premium?

Thanks

Yes. The illustration will show the guaranteed term premium and then the guaranteed premium after that point to keep it going to age 105. Very reasonable premiums for younger people whose policy terms expire at age 50-65. Most of the time I like this option better than conversion options where there is no guarantee as to what products the company might have available 20-30 years down the line.
 
Do we get paid on the "conversion" automatically? Or is there paper work that needs to be done?
I do a fair amount of conversions every year. Do not want to give that up.
I like that the premium is predetermined. No new underwriting for the client. I wonder if a 10 year term could be used as a low cost buy in to a GUL type policy. Kinda like the old graded premium policies or the new Protective Mod UL?

Going to have to do some illustrations.

Thanks

Yes. The illustration will show the guaranteed term premium and then the guaranteed premium after that point to keep it going to age 105. Very reasonable premiums for younger people whose policy terms expire at age 50-65. Most of the time I like this option better than conversion options where there is no guarantee as to what products the company might have available 20-30 years down the line.
 
If you are willing to pay the same amount for a 1-year rate lock policy as you would for a 30-year rate lock, then I would have to say that you are an ideal fit for NorthWestern Mutual.

Haha...good point...I'm glad I haven't done anything yet...as I didn't even look at it from that point of view...

Here are my stats btw, 26 yrs old, 150 lbs, 5'9", non-smoker. I'm in perfect health right now, but what if, like you guys say, something happens...maybe I'll just see about getting a 10 year or something for an additional 250k at the moment. And yes, I did confirm that my T30 is a fixed premium for the 30 years.
 
Haha...good point...I'm glad I haven't done anything yet...as I didn't even look at it from that point of view...

Here are my stats btw, 26 yrs old, 150 lbs, 5'9", non-smoker. I'm in perfect health right now, but what if, like you guys say, something happens...maybe I'll just see about getting a 10 year or something for an additional 250k at the moment. And yes, I did confirm that my T30 is a fixed premium for the 30 years.


With Cincinnati Life a $500K policy for you is only:
20 year term- $22-$30/month
15 year term- $18-$25/month
10 year term- $17-$20/month
(cut the premiums in half for $250K)

I hardly ever recommend a 30 year term, it has less than a 2% chance of ever being used, and less than a 30% chance of you still having it in 30 years. 20 year term isnt much better but does have its place.

I would most likely recommend that you do a 20 year term for $300K (this will guarantee coverage until your kid is grown, no matter what), and a 10 year term for $200K.
This would keep your premiums the same, double your coverage, and double your options down the road.
 
I've worked at NML and am now independent, so I think I have a decent perspective on this. When I was there, the numbers worked out that for someone as young as this poster, getting the top rating as he should, that the T80 was a great product - the premiums, while only guaranteed for the 1st 5yrs, were projected (and historically this held) to remain stable until he reaches his late 30s. If you present-valued them, the payments were about the same or less than a comparable 30yr term. So I'm unsure as to why his illustration showed the premiums increasing after the 1st 12 months. Perhaps someone on here from NML could double-check that.

That said, for the majority of cases NML term was substantially more than from competitors. As such, I always considered it appropriate only as a bridge to NML whole life products, and sold it on that basis. If I met someone who was more established in life and knew it was highly unlikely that the policy would be converted, and that he/she could get a guaranteed level product for a term sufficient to take them past the time when a death benefit would be necessary, there was no reason to pay up for NML.
 
I would most likely recommend that you do a 20 year term for $300K (this will guarantee coverage until your kid is grown, no matter what), and a 10 year term for $200K.
This would keep your premiums the same, double your coverage, and double your options down the road.

Or he can purchase a 20 year $500k policy and shed some of that coverage whenever he wants.
 
Or he can purchase a 20 year $500k policy and shed some of that coverage whenever he wants.


The purpose of tiering the policies isnt to because he will need less coverage after 10 years. Its to maximize the DB for the money.

He will most likely need more DB in ten years. The 10 year policy maximizes DB and allows him to reevaluate how to spend those premium dollars after he finishes school.

Buying a 20 year term with plans to just shed coverage is over paying for what is shed....
 
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