I haven’t been successful in marketing UL products so often. I’d look forward to some of you lending a hand. A few good tips might just make things work for me!
Total Comments: 19
Posted: Fri Apr 02, 2010 01:42 am Post Subject:
Until one gets to the variable contracts, UL/EIUL is THE MOST COMPLICATED life insurance product ever devised.
While the secondary guarantees will keep the policy in force as long as 100% of the premiums are paid on time, what guarantee does anyone have that they will be able to pay those premiums according to those terms?
Sorry, but there is nothing complicated about UL with secondary guarantees. It's evident from posts of yours from not too long ago that this is a brand new subject to you.
Is ten year term complicated? What about 20 year term? What about 30 year term? What about lifetime term? When it's thought of as life time term, there is nothing complicated. Pay the premium. Keep the insurance. Don't pay the premium. Lose the insurance.
Posted: Fri Apr 02, 2010 01:46 am Post Subject:
The policies' complications aren't nearly as big a problem as the agents' inability or unwillingness to explain the mechanics of the contract.
Posted: Fri Apr 02, 2010 01:50 am Post Subject:
I must be getting the wrong illustrations. Most of them show little to no cash value on the current side and no cash value at all after the first few years on the guaranteed side. I don't know why someone would want to overpay for their life insurance just to borrow it back later (and pay interest on their own money), but hey, what do I know...
I think that WL is better sometimes. I think that UL is better sometimes.
However, let's have a factually correct conversation. UL with a secondary guarantee is only cheaper if one ignores dividends or is for an older person. Even if we want to do a constant dollar comparison, if someone is younger, a WL/term combo using today's low dividend scales will beat the GUL policy.
Also, you know better than to say that one pays interest to borrow their own money back when they buy a whole life policy. They are borrowing the insurance company's money and using their policy as collateral. They could take their policy to a bank and do the same thing. WL policies don't have a cash value. They have a cash surrender value.
The money doesn't belong to the insured unless they surrender the policy.
Posted: Fri Apr 02, 2010 01:54 am Post Subject:
We could argue all day about participating whole life, but he was stating that it is far more expensive to "properly fund" a guaranteed UL than a "plain vanilla" whole life policy, which I can only assume he means a non-participating WL. Of course, we both know that's false because a GUL will be significantly less expensive than a non-par WL, especially with a limited pay scenario. Will it have the same cash value? No, but most people would rather have a larger death benefit or lower premium than a cash value they may never touch.
I say you are borrowing your own money because you're forking out all that extra money every year to build the CV, then having to pay to get it back. I like keeping money in my pocket, not the insurance company's pocket. Other people may disagree, and that's why we have health insurance policies that cost $2000/month. People just love putting money in the company's pocket.
Posted: Fri Apr 02, 2010 06:20 am Post Subject:
Many agents don't prefer to market UL as a front-end product. They'd rather keep Term life as a front-end offer. Try and help your clients with their money matters and you'll gain their trust eventually. If you don't take advantage of their trust, they'll will surely refer more opportunities for you.
Posted: Fri Apr 02, 2010 08:56 am Post Subject:
I feel it's better that you show up as your client's financial planner and place UL within his financial plan. Carefully analyze his needs and don't ignore his personal views. Don't push him to accept your offer if he doesn't need it. Also don't forget to explain everything clearly once he agrees to accept your offer.
Posted: Sat Nov 13, 2010 11:39 pm Post Subject:
Great Debate! I have enjoyed this read. I have an opinion on this. I agree with the People DO NOT want to borrow cash from their policy(themselves) Nice to have it to borrow if the market is doing great, but if they die early they have paid more for the same death Benefit.
Posted: Sun Nov 14, 2010 02:38 am Post Subject:
Great Debate! I have enjoyed this read. I have an opinion on this. I agree with the People DO NOT want to borrow cash from their policy(themselves) Nice to have it to borrow if the market is doing great, but if they die early they have paid more for the same death Benefit.
Maybe we don't know for sure that that will be the case.
But even if it is, you might have gotten less db paid out, you will had the money when you took it from the policy.
Posted: Mon Nov 15, 2010 04:46 am Post Subject:
But even if it is, you might have gotten less db paid out, you will had the money when you took it from the policy.
Always have to remember that the cash value is part of the Death Benefit (even UL Option B -- face + CV). You're just getting it in advance of dying, not beating the insurance company out of any money. Nice try, but they figured it out long before you came to the game.
Posted: Fri Apr 02, 2010 01:42 am Post Subject:
Until one gets to the variable contracts, UL/EIUL is THE MOST COMPLICATED life insurance product ever devised.
While the secondary guarantees will keep the policy in force as long as 100% of the premiums are paid on time, what guarantee does anyone have that they will be able to pay those premiums according to those terms?
Sorry, but there is nothing complicated about UL with secondary guarantees. It's evident from posts of yours from not too long ago that this is a brand new subject to you.
Is ten year term complicated? What about 20 year term? What about 30 year term? What about lifetime term? When it's thought of as life time term, there is nothing complicated. Pay the premium. Keep the insurance. Don't pay the premium. Lose the insurance.
Posted: Fri Apr 02, 2010 01:46 am Post Subject:
The policies' complications aren't nearly as big a problem as the agents' inability or unwillingness to explain the mechanics of the contract.
Posted: Fri Apr 02, 2010 01:50 am Post Subject:
I must be getting the wrong illustrations. Most of them show little to no cash value on the current side and no cash value at all after the first few years on the guaranteed side. I don't know why someone would want to overpay for their life insurance just to borrow it back later (and pay interest on their own money), but hey, what do I know...
I think that WL is better sometimes. I think that UL is better sometimes.
However, let's have a factually correct conversation. UL with a secondary guarantee is only cheaper if one ignores dividends or is for an older person. Even if we want to do a constant dollar comparison, if someone is younger, a WL/term combo using today's low dividend scales will beat the GUL policy.
Also, you know better than to say that one pays interest to borrow their own money back when they buy a whole life policy. They are borrowing the insurance company's money and using their policy as collateral. They could take their policy to a bank and do the same thing. WL policies don't have a cash value. They have a cash surrender value.
The money doesn't belong to the insured unless they surrender the policy.
Posted: Fri Apr 02, 2010 01:54 am Post Subject:
We could argue all day about participating whole life, but he was stating that it is far more expensive to "properly fund" a guaranteed UL than a "plain vanilla" whole life policy, which I can only assume he means a non-participating WL. Of course, we both know that's false because a GUL will be significantly less expensive than a non-par WL, especially with a limited pay scenario. Will it have the same cash value? No, but most people would rather have a larger death benefit or lower premium than a cash value they may never touch.
I say you are borrowing your own money because you're forking out all that extra money every year to build the CV, then having to pay to get it back. I like keeping money in my pocket, not the insurance company's pocket. Other people may disagree, and that's why we have health insurance policies that cost $2000/month. People just love putting money in the company's pocket.
Posted: Fri Apr 02, 2010 06:20 am Post Subject:
Many agents don't prefer to market UL as a front-end product. They'd rather keep Term life as a front-end offer. Try and help your clients with their money matters and you'll gain their trust eventually. If you don't take advantage of their trust, they'll will surely refer more opportunities for you.
Posted: Fri Apr 02, 2010 08:56 am Post Subject:
I feel it's better that you show up as your client's financial planner and place UL within his financial plan. Carefully analyze his needs and don't ignore his personal views. Don't push him to accept your offer if he doesn't need it. Also don't forget to explain everything clearly once he agrees to accept your offer.
Posted: Sat Nov 13, 2010 11:39 pm Post Subject:
Great Debate! I have enjoyed this read. I have an opinion on this. I agree with the People DO NOT want to borrow cash from their policy(themselves) Nice to have it to borrow if the market is doing great, but if they die early they have paid more for the same death Benefit.
Posted: Sun Nov 14, 2010 02:38 am Post Subject:
Great Debate! I have enjoyed this read. I have an opinion on this. I agree with the People DO NOT want to borrow cash from their policy(themselves) Nice to have it to borrow if the market is doing great, but if they die early they have paid more for the same death Benefit.
Maybe we don't know for sure that that will be the case.
But even if it is, you might have gotten less db paid out, you will had the money when you took it from the policy.
Posted: Mon Nov 15, 2010 04:46 am Post Subject:
But even if it is, you might have gotten less db paid out, you will had the money when you took it from the policy.
Always have to remember that the cash value is part of the Death Benefit (even UL Option B -- face + CV). You're just getting it in advance of dying, not beating the insurance company out of any money. Nice try, but they figured it out long before you came to the game.
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