Whole Life

[LGilmore]

"Lets say a guy is 40. He takes a 10k loan. He dies at age 50. He never made payment on the loan. Is there new interested added every year (for the ten years) or is there a one time interest charge added at the time of the loan?"

Possibly.... or you could change your dividend election to reduce loan and loan interest.... another dividend election choice that can be made.

 

[smokin goose]

Interest accumulates annually and is compounded annually. So it will eat away the Face over time. An average loan rate is 6% so, in your example the loan will have $600 in interest added to the Loan since it was not paid. Thus, the 6% will be on the 10,600 the next year and so on and so on.

Now a neat feature with a bunch of companies is to use the dividend to pay down the loan. This is a Big "It Depends" if this is a good idea. You see, it all depends on the company and dividend scale. It may better the client to keep using PUA's to get higher dividend later on.

To learn quickly on this product. Contract with a good company and talk with the upline on getting you software. You can learn alot playing with the illustrations and using a lot of What If's in the process to learn and get new questions for your upline. Hopefully your Upline will be considerate to your learning curve....

That's the answer I was looking for. Thanks.

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I've learned a lot from this thread. Thanks everybody.

 

[goillini52]

That's the answer I was looking for. Thanks.

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I've learned a lot from this thread. Thanks everybody.

I'm glad I recently found this Forum...I learn something every day.

 

[jacobtn]

If death benefit is the intended purpose, why not use a GUL illustrated wuth no guaranteed CV?

The answer here really depends on intended purpose and death benefit amounts.

For example, if this is just for death benefit (and I have a sneaking suspicion that it is) then some of the lowest priced par whole life contracts will come from Guardian, MetLife and Ohio National. Lafayette Life has a product that might compete price wise as well--though it's Lafayette Life so trade carefully.

If you're writing death benefits below $50,000 Ohio National tends to be a tad pricey, Guardian is super competitive, but MassMutual can sometimes pull an upset if the PI is healthy. Met is also really competitive here and will go all the way down to $10,000. The only other carrier that will entertain a below $25,000 death benefit is Lafayette Life (actually New York Life will do it, but the premium will not exceed the minimum you'd need it to to broker the product in that case).

$50,000 to $250,000 can be an Ohio National sweet spot since their paid up at age 120 product is available to everyone within this range, whereas Guardian and MetLife require a $250,000 death benefit minimum (Guardian will drop this minimum to $100,000 if the PI is 50+).

If you want shorter pay products Guardian, MassMutual, and MetLife have the most comprehensive portfolios. With Ohio National coming in behind them but ramped up this year with the introduction of their 10 Pay.

If you want to completely flip the tables and talk about whole life for cash accumulation purposes/retirement income planning, Penn Mutual and MassMutual all day long.

 

[smokin goose]

If death benefit is the intended purpose, why not use a GUL illustrated wuth no guaranteed CV?

Good call.

What about when a young guy needs more while raising kids and has a mortgage, but also wants to cover final expenses should he grow old.

250k in 20 year term and a 50k WL.

250k in 20 year term and 50k GUL.

300 in 20 year term then convert to WL.

OR

300k in WL then begin to borrow for retirement later on.

 

[scagnt83]

To learn quickly on this product. Contract with a good company and talk with the upline on getting you software. You can learn alot playing with the illustrations and using a lot of What If's in the process to learn and get new questions for your upline. ..

Very wise words. That is absolutely hands down the best way to learn permanent life insurance products. Run illustration after illustration after illustration. And not on winflex.

 

[Tahoe Ray]

Very wise words. That is absolutely hands down the best way to learn permanent life insurance products. Run illustration after illustration after illustration. And not on winflex.

Considering winflex was "calculating" my SGUL illustrations today for about 15 minutes each (trying multiple computers and browsers), he'd probably be retired before fully understanding the product.

 

[DWPCL]

The answer here really depends on intended purpose and death benefit amounts.

For example, if this is just for death benefit (and I have a sneaking suspicion that it is) then some of the lowest priced par whole life contracts will come from Guardian, MetLife and Ohio National. Lafayette Life has a product that might compete price wise as well--though it's Lafayette Life so trade carefully.

.

Why are you not a fan of Lafayette?

 

[scagnt83]

Good call.

What about when a young guy needs more while raising kids and has a mortgage, but also wants to cover final expenses should he grow old.

250k in 20 year term and a 50k WL.

250k in 20 year term and 50k GUL.

300 in 20 year term then convert to WL.

OR

300k in WL then begin to borrow for retirement later on.

It is all just situation specific really.

Different people have different goals/desires/situations/needs/etc.



First, it is important to differentiate between the $50k WL & $50K GUL. They should not be compared as being the same thing. (assuming a par-wl with increasing db)

If it is a Par-WL with an increasing DB then 40/50/60 years down the road (when life expectancy is much less) there will be a very large difference between the two policies.

Assuming inflation rises at 3%; every 23.5 years your clients DB need will double... assuming their need stays the same.


The 4th option requires significant cash flow. It can be effective. But it is a bit different than a traditional protection based approach.

The 3rd is just a way to eventually get to the 4th with a cheaper front end cost.

 

[Arookaria]

--though it's Lafayette Life so trade carefully.

Just curious but why do you say that? Assuming you meant "tread carefully"

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