by Guest » Tue Jan 11, 2011 06:09 pm
I'm looking for some term life insurance that builds cash value. Can someone please help me? I know that Primerica and Northern Mutual are the best. But that's all that I know...Thanks!
Posted: Wed Jan 26, 2011 02:10 pm Post Subject:
have only sold one ROP policy in my life and it was against my advice.
For what reason? No cash value compared to the permanent policy?
Posted: Wed Jan 26, 2011 09:57 pm Post Subject:
fkafma,
Okay; I went to one of the many ROP policies sold through my agency and looked at a copy of an illustration. Low-and-behold, the words "Cash Value" do appear above the column that shows the guranteed return in future years.
So, because the insurance companies don't use something like "Amount of premiums returned" I'll concede the disagreement with bias. As long as you understand the money shown in the aforementioned column, never exceeds the amount of premiums paid into the policy.
Posted: Thu Jan 27, 2011 02:53 am Post Subject: Life Insurance Alabama
There is no such thing as a term life insurance with cash value. Only a whole life insurance has the cash value. Life Insurance in Alabama has a good life insurance policy.
Posted: Thu Jan 27, 2011 03:52 am Post Subject:
Hayes: Dude - you've got to read the whole thread. Even though most of us agree with you, there is a very small minority................
Posted: Fri Jan 28, 2011 11:19 am Post Subject:
For what reason? No cash value compared to the permanent policy?
My dislike has nothing to do with cash value compared to a permanent policy. The primary value with permanent insurance is having a death benefit that doesn't go away and not the cash value.
My dislike of ROP is that in almost any scenario it isn't as good as regular term coverage.
A term policy either stays in force or it doesn't. There are plenty of good reasons for a policy to not stay in force (death, the need is no longer there, money to pay a premium is no longer there, it can be replaced for less money or same money for longer time period, etc.)
With the power of hindsight, ROP term is only better if the policy stays in force the entire time AND the person had nothing better to do with the extra premiums.
So, you see, I’m not saying that people should buy term with a cash surrender value. I’m just saying that as insurance professionals, we should not be saying things like, “term insurance = no cash value” because as ROP shows us, it is possible for a term policy to have a cash surrender value.
Posted: Fri Jan 28, 2011 11:28 am Post Subject:
So, because the insurance companies don't use something like "Amount of premiums returned" I'll concede the disagreement with bias. As long as you understand the money shown in the aforementioned column, never exceeds the amount of premiums paid into the policy.
I'm not calling it a good product. I'm simply saying that it exists and to say otherwise is false.
With WL/UL when the cash surrender value is less than the premiums paid, the insurance companies still call it "cash value" and not "amount of premiums returned". It isn't any difference with the ROP Term products.
More specificly, a UL funded at a GUL level will always have the cash surrender value be less than the premiums paid and it is still called "cash value".
The bottom line is that term insurance can have a cash value, but most term products are not designed in that manner.
Posted: Sun Jan 30, 2011 01:08 am Post Subject:
The NAIC has written special "nonforfeiture" provisions for ROP Term. They do reference "cash value" (as previously stated, CV is a "nonforfeiture" provision). So I concede the fact with regard to ROP Term only.
NO OTHER FORM OF TERM LIFE INSURANCE HAS CASH VALUE. You have to admit that, too.
Posted: Sun Jan 30, 2011 03:51 am Post Subject:
Max, you may be correct. I can't admit that you are correct, because quite frankly, I don' know. For this conversation, it does not matter if one kind of term has cash value or all term has it. The person wanted term insurance with cash value. We need to tell them it exists.
My point, though, is simply that we shouldn't be speaking in absolutes unless we are absolutely correct. Term insurance is term insurance because it is for a period of time and not because of a lack of cash value.
Posted: Sun Jan 30, 2011 06:11 am Post Subject:
Huh?
I'm now officailly done with this thread.
Posted: Sun Jan 30, 2011 05:59 pm Post Subject:
For this conversation, it does not matter if one kind of term has cash value or all term has it.
The way you argued your premise, it sure did.
The person wanted term insurance with cash value. We need to tell them it exists.
I don't think that quite goes to the heart of the matter. What kind of CASH VALUE was the OP looking for? We'll never know because he never returned. If you simply say, "Yes, there is term insurance with cash value," most people would come away thinking along the lines of whole life, not ROP term. Failure to disclose the nature of the ROP and the policyowner's responsibilities (to pay premiums for most/all of the years of the policy) would be a concealment or misrepresentation.
So, like Mark, I'm done. You received an acknowledgment (from both of us) that ONE KIND of term insurance has a modest cash value component (never exceeding the premiums paid), and then you say,
I can't admit that you are correct, because quite frankly, I don' know.
Brother, either you have no clue about life insurance or you and the devil are going to have one heck of an argument over who's the bigger [devil's] advocate.
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