Whole Life

[smokin goose]

I am speaking in general. I'm not well versed in whole life and would like to learn more. Folks, the only thing I really know is the very basics for small SIWL products. I don't even know what par and nonpar mean.

I've sold term and gul through worksite, individual fully underwritten term and individual SIWL.

I've only been in the business for 13 months. I'm finding that I enjoy selling life and its also what I sell the most of. So I want to become a life insurance superman. :-)

 

[scagnt83]

bntrs has a good blog that would be good for you to read. theinsuranceproblog.com

Par/Non-Par stands for Participating or Non-Participating. It is a reference to Dividends. Either a policy participates in company dividends or it does not.
The dividends help to boost the performance of the CV & DB (very basic explanation).

 

[TwiLight]

I primarily sell Lafayette Life and Mutual Trust Life for Dividend WL product and love both.

You have many choices with riders and Dividend scales are solid.

For under 30, Lafayette would be my first choice.

Remember RNA's plan is dividend paying, but do not expect alot of Dividend because the pricing is very competitive. That is how WL works. Usually the higher the price of the product the higher the dividend scale is.

Remember, dividends are a return of overpaid premiums and the scale is a direct reflection of the total amount of dividend you receive in the life of the contract.

So if you are looking for younger ages and do not care to much for cash value the RNA 20 pay is excellent. Otherwise use Lafayette Life. The Cash values will be great along with the dividend.

 

[scagnt83]

So if you are looking for younger ages and do not care to much for cash value the RNA 20 pay is excellent. Otherwise use Lafayette Life. The Cash values will be great along with the dividend.

Is that an increasing DB product or level?

 

[smokin goose]

Thanks guys! Keep it comin.

I bookmarked Brandon's blog.

 

[smokin goose]

Ok, so a par WL pays dividends. And those dividends automatically go towards PUA. So every year the death benefit increases.

Am I on the right track here?

 

[TwiLight]

Ok, so a par WL pays dividends. And those dividends automatically go towards PUA. So every year the death benefit increases.

Am I on the right track here?

for the best Face and Later Dividends, Yes PUA.

You may also use the dividend to lower the premium, take it in CASH or leave it on deposit earning a taxable interest rate.

PUA is almost always the best choice.

 

[smokin goose]

Ok, I have another question. If you take a loan for say 10k on a 50k face and never pay it back. Would the DB be 50-10 or 50-10+interest on the loan?

 

[scagnt83]

All WL products are Level.....the increasing DB comes with the Dividend option.

You know what I meant.

I know RNA has different products. And the illustrations I have seen of their par wl gets blown away by even a midpoint illustration on the DB side by any of the major par wl players. From illustrations I have seen in the past RNA might as well not pay a dividend at all. Maybe I am being too harsh. It has been a while since I have seen any RNA illustrations.

I was just curious if their 20 pay was any different.

 

[LGilmore]

"Ok, so a par WL pays dividends. And those dividends automatically go towards PUA. So every year the death benefit increases.

Am I on the right track here? "

Yes and no because the answer to your question is "depends". Dividends with most companies have several options a person can elect if they choose. They can be taken as a tax free cash refund, they can be set aside in an interest bearing account, they can purchase PUAs and they can be used to reduced premium for a few examples.

Dividends are sill putty.. you can make them do just about anything you want them to.

I love reducing the premium or premium offset when I mess with primeamerica people because those are the cheapest options for the longest duration of insurance coverage. One ends the need for external premiums after 15-16 years (yea, I know premium offset isn't guaranteed, soooo just add a couple years to the premium schedule and you're golden.) and the other makes the premium cheaper each year and can be structured to zero later in the policy's life.