Under Funded UL or Term with Conversion Cred?

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When prospecting with younger clients that don't have a lot of excess cash, is it better to under fund a UL policy or buy term with good conversion options or credits? Current assumption UL can be minimally funded rather cheap so I guess it could work just wondering what the experts think. I have read Larry Tew's posts about getting as much term as possible with good conversion options. Is this best?
 
I wouldn't underfund (minimum premium) a UL-type product. It would have to be at target premium or higher.

For WL, it's okay to be a base-only policy... it just won't be a "super accumulator" of cash and take a while to "break even" based on premiums paid & cash value accumulation.

I would look at doing a blend... a smaller UL face amount properly funded, along with a 10- or 20-year term rider. Just see if that's a viable alternative for the prospect's budget.

For example, instead of a minimum fund $250,000 UL... look at a $100k UL... with a $150k term rider. Just play with the mix and see what you can do with it.
 
hard to answer except remember a client loses about half of what you talked about before you start your car to leave. I would avoid setting up a minimum premium UL as it may be 15-20 years before something bad happens and do you think they will remember the conversation from when you sold it?

I would sell the term. I just have seen too many situations where an underfunded UL is a lawsuit or firing happening as you idea is not new. When it was done before, bad things man, bad things...
 
If someone needs death benefits and can't afford permanent, they should get a convertible term policy. Then it's your job to call them yearly about partial conversions on those policies.
 
I always recommend a convertible term like Mass, I hate that they don't have a 30 year product, probably where the UL or WL would come in, in Mass' eyes.

I would never underfund anything like a UL. My brother did that once, bought a crazy face amount of UL figuring he could afford the ratchet up in money he would have to pay to keep it alive, he lasted 2 years in that policy (I didn't sell it to him)
 
I always recommend a convertible term like Mass, I hate that they don't have a 30 year product, probably where the UL or WL would come in, in Mass' eyes.

I would never underfund anything like a UL. My brother did that once, bought a crazy face amount of UL figuring he could afford the ratchet up in money he would have to pay to keep it alive, he lasted 2 years in that policy (I didn't sell it to him)

That's exactly the problem. Most won't last as long as even a short term policy would and they will have paid a lot more.
 
when prospecting with younger clients that don't have a lot of excess cash, is it better to under fund a ul policy or buy term with good conversion options or credits? Current assumption ul can be minimally funded rather cheap so i guess it could work just wondering what the experts think. I have read larry tew's posts about getting as much term as possible with good conversion options. Is this best?

gul ? .

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Don't know what is going on.. Typed GUL with caps but it keeps changing to lower case.
 
gul ? .

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Don't know what is going on.. Typed GUL with caps but it keeps changing to lower case.

Not GUL but current UL that can be overfunded at a later date. The consensus is that it is a bad idea so I guess I will stick to selling term to the youngins and shooting for conversions.
 
Not GUL but current UL that can be overfunded at a later date. The consensus is that it is a bad idea so I guess I will stick to selling term to the youngins and shooting for conversions.
You can also try finding an additional market that has more income.
 
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