WL Vs UL?

[summerof18]

I Primarily sell Whole life for FE.
So I completely understand that part of whole life.
But what's is the big draw in selling UL vs WL for fully underwritten?

I know UL is flexible, but is it safe? Are the clients guaranteed their original DB amount when policy was first sold?
Do agents have to do yearly reviews on UL policies to make sure the interest rates aren't hurting their policies?
Out of UL and fully underwritten WL which is most common these days to sell?

Thank you!

Amber

 

[DHK]

Lots to discuss on this one.

First: "FE" whole life is NOT the same as fully underwritten whole life. Most "FE-style" WL policies don't have a lot of the extra riders and customization options available that companies committed to WL offer. If you're selling FE, you're probably appointed with Assurity, they have a participating WL policy to take a look at... and they're also one of the few that also offer "FE-style" policies too.

Second: UL is only as safe as the knowledgeable agent dedicated to selling and servicing it and their clients properly.

Which is more common to sell? UL in the brokerage market and WL in the captive markets.

Based on my contracts, UL will pay me more than a properly structured WL policy. With WL policies, to truly maximum-fund a minimum death benefit, you have a small WL policy + term riders + PUA/ALIR/VER (cash dump-in riders). You earn your base commission on the base policy, and a tiny commission on the cash value enhancement riders.

With an UL (or IUL) policy, you can earn a very substantial commission on the entire premium commitment up to the maximum target premium for a given death benefit.

UL is Annually Renewable Term with a side fund... and a surrender charge schedule for the first 10-15 years (depending on policy/company). Make sure you compare the UL columns for "account value" and "net surrender values". The only difference between these two columns... is the surrender charge schedule if the client cancels out the policy during the surrender charge period. (This is to ensure that costs can be recaptured - including commissions to agents.) This also means that there are cash values going to work in year 1 (if the policy is structured soundly).

The major problems with UL occur when the policyholder and agent are NOT in communication with each other on a regular basis - ideally annually. Any clients with loans against the policy, or have stopped making payments for a period of time should be contacted on a regular basis to help keep the policy in-force.

If you properly structure the policy, set proper expectations with your clients, and service what you sell, I think IUL will be the future of the life insurance industry.

 

[summerof18]

Lots to discuss on this one. First: "FE" whole life is NOT the same as fully underwritten whole life. Most "FE-style" WL policies don't have a lot of the extra riders and customization options available that companies committed to WL offer. If you're selling FE, you're probably appointed with Assurity, they have a participating WL policy to take a look at... and they're also one of the few that also offer "FE-style" policies too. Second: UL is only as safe as the knowledgeable agent dedicated to selling and servicing it and their clients properly. Which is more common to sell? UL in the brokerage market and WL in the captive markets. Based on my contracts, UL will pay me more than a properly structured WL policy. With WL policies, to truly maximum-fund a minimum death benefit, you have a small WL policy + term riders + PUA/ALIR/VER (cash dump-in riders). You earn your base commission on the base policy, and a tiny commission on the cash value enhancement riders. With an UL (or IUL) policy, you can earn a very substantial commission on the entire premium commitment up to the maximum target premium for a given death benefit. UL is Annually Renewable Term with a side fund... and a surrender charge schedule for the first 10-15 years (depending on policy/company). Make sure you compare the UL columns for "account value" and "net surrender values". The only difference between these two columns... is the surrender charge schedule if the client cancels out the policy during the surrender charge period. (This is to ensure that costs can be recaptured - including commissions to agents.) This also means that there are cash values going to work in year 1 (if the policy is structured soundly). The major problems with UL occur when the policyholder and agent are NOT in communication with each other on a regular basis - ideally annually. Any clients with loans against the policy, or have stopped making payments for a period of time should be contacted on a regular basis to help keep the policy in-force. If you properly structure the policy, set proper expectations with your clients, and service what you sell, I think IUL will be the future of the life insurance industry.

Thanks for the input!

Amber

----------

Lots to discuss on this one. First: "FE" whole life is NOT the same as fully underwritten whole life. Most "FE-style" WL policies don't have a lot of the extra riders and customization options available that companies committed to WL offer. If you're selling FE, you're probably appointed with Assurity, they have a participating WL policy to take a look at... and they're also one of the few that also offer "FE-style" policies too. Second: UL is only as safe as the knowledgeable agent dedicated to selling and servicing it and their clients properly. Which is more common to sell? UL in the brokerage market and WL in the captive markets. Based on my contracts, UL will pay me more than a properly structured WL policy. With WL policies, to truly maximum-fund a minimum death benefit, you have a small WL policy + term riders + PUA/ALIR/VER (cash dump-in riders). You earn your base commission on the base policy, and a tiny commission on the cash value enhancement riders. With an UL (or IUL) policy, you can earn a very substantial commission on the entire premium commitment up to the maximum target premium for a given death benefit. UL is Annually Renewable Term with a side fund... and a surrender charge schedule for the first 10-15 years (depending on policy/company). Make sure you compare the UL columns for "account value" and "net surrender values". The only difference between these two columns... is the surrender charge schedule if the client cancels out the policy during the surrender charge period. (This is to ensure that costs can be recaptured - including commissions to agents.) This also means that there are cash values going to work in year 1 (if the policy is structured soundly). The major problems with UL occur when the policyholder and agent are NOT in communication with each other on a regular basis - ideally annually. Any clients with loans against the policy, or have stopped making payments for a period of time should be contacted on a regular basis to help keep the policy in-force. If you properly structure the policy, set proper expectations with your clients, and service what you sell, I think IUL will be the future of the life insurance industry.

Which carriers offer EApp? Sold over the phone?
Are there any competitive carriers or products that offer simplified issue,,,,I think Sagicor is one??

Amber

 

[pcbinsurance]

http://www.sagicorlifeusa.com/languages/en/downloads/products/Sagicor_No_Lapse_UL_Brochure.pdf

http://www.sagicorlifeusa.com/languages/en/downloads/products/9021.pdf

 

[summerof18]

Which carriers offer most competitive WL policies?
I have a website I use to pull up UL and Term quotes for several carriers, but no WL, otherwise I would know this info....

Thanks again!

Amber

 

[pcbinsurance]

I defer to the WL gurus like DHK but I believe Ohio National is always competitive. You can contract direct.

 

[Cash]

Which carriers offer most competitive WL policies?
I have a website I use to pull up UL and Term quotes for several carriers, but no WL, otherwise I would know this info....

Thanks again!

Amber

It's not really about pulling up quotes and seeing who is cheapest.

 

[WinoBlues]

DHK said it pretty well. I will add there are some differences in in ULs I would guess you are asking more about GUL as opposed to standard UL.

Thanks for the input!

Amber

----------



Which carriers offer EApp? Sold over the phone?
Are there any competitive carriers or products that offer simplified issue,,,,I think Sagicor is one??

Amber

Sagicor has the EApp and can be sold over the phone. While the Preferred and Standard do not have any tables built in I find their Std to be pretty liberal. They also have a Rated that is T2. Controlled DM could fit as an example. For the FE agent the very quick yes or no is a plus. IMHO They also have a term with the same EApp.

 

[Tahoe Ray]

Which carriers offer most competitive WL policies?
I have a website I use to pull up UL and Term quotes for several carriers, but no WL, otherwise I would know this info....

Thanks again!

Amber

Met, Penn, Mass, and others. Premium is not normally as much of a factor vs. GUL or term....

 

[WinoBlues]

It's not really about pulling up quotes and seeing who is cheapest.

That. Traditional WL is used very differently than FE. Not intended for the 15 minute appointment.