Insurance Agent Forum

[arnguy]

CI is big in Canada, Ami's home territory.

[Ami]

Originally Posted by arnguy

CI is big in Canada

Actually, it's not as "big" as it should be. It was "invented" by a cardiologist who had first-hand knowledge of the financial impact of critical illness on his patients. It became particularly popular in England. It was introduced in Canada in the early 1990s and gained success after it was included in LifeGuide. However, once claims experience started rolling in, it became clear to insurers that the product was seriously underpriced. What followed was a wave of substantial price increases along with trimming of renewal premium guarantees and substantial tightening of underwriting. It's still a good value in Canada but nowhere near what it was in the earlier days.

It's interesting that CI has not yet gained as much success as it should have in the US although it's still one of the best values in personal coveage from the insurance buyer's perspective.

[dj5106]

Originally Posted by moonlightandmargaritas

Syd, when you say "cheaper", have you calculated the net cost after say...20 or 30 years...calculating dividends and cash value?

Moon, what do you mean by this exactly. If the premium is less on the paid up UL than a WL policy with the same face value, wouldn't the UL be cheaper? I'm not challenging you here, I would like to know how to calculate this for my clients to really see what is the best value for the long haul. Would I just illustrate the guaranteed sides of both policies to see the better value? I have a hard time believing illustrated future values that are not guaranteed.

[Death Cab For Tootie]

Originally Posted by Labman

Pretty simple case, but I'm new and want to do the best thing for her.

22 year old female, recently married with no substantial obligations or children at this time.

How much would you recommend and would it be term, permanent or a blend?

Thanks!

What is her income? What is the maxiumum the issuing company will allow? How is her health? What kind of debt does she have? What does her husband do? What would happen to him if she died today? Does she have coverage elsewhere? How much? What kind?

In other words, too many questions need to be asked before a recommendation can be made.
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And for those who are talking about DI, why not sell both?

[GonnaFlyNow]

To moonlight and greensky,

The more i read your posts the more i like you guys.

Keep up the good work.

Kw

[Ami]

Originally Posted by dj5106

Would I just illustrate the guaranteed sides of both policies to see the better value? I have a hard time believing illustrated future values that are not guaranteed.

AFAIK, there is one rock solid guarantee about illustrations of long term future values that are not guaranteed. That rock solid guarantee is that the long term results will not match the illustrated long term projections.

Insofar as

Originally Posted by dj5106

Moon, what do you mean by this exactly. If the premium is less on the paid up UL than a WL policy with the same face value, wouldn't the UL be cheaper? I'm not challenging you here, I would like to know how to calculate this for my clients to really see what is the best value for the long haul.

:
One way to go about it (and, yes, I would only rely on guaranteed values) would be to reference the respective IRR for the respective time periods. I'd look at the respective IRR for the DB as well as the IRR for the guaranteed surrender/collateral values.

[dj5106]

[quote=Ami;171286]AFAIK, there is one rock solid guarantee about illustrations of long term future values that are not guaranteed. That rock solid guarantee is that the long term results will not match the illustrated long term projections.

I'm with you there...

[moonlightandmargaritas]

Originally Posted by dj5106

If the premium is less on the paid up UL than a WL policy with the same face value, wouldn't the UL be cheaper?

Not if the whole life is paying dividends.

For a rough idea, take the total premiums paid, less the cash value and dividends paid.

Over twenty or thirty years, it can make a huge difference. That's why you usually see mutual companies (Guardian, NWM, etc.) with the lowest cost index.

[dj5106]

Thanks Moon