Agents don't mention PUA rider, why?

[DHK]

Thanks! Are there any negatives?

Sure there are! The promises of the contract are only as good as you making the payments! (Yeah, I know, that's every contract.)

 

[ls015]

I have one more question on Guardian PUAR. Is the 5% service fee on just the current year's PUA premium or is it on the whole cash value of PUA?

 

[Lloyds of Lubbock]

It is on your annual out of pocket premium or modal.
This is not unique to guardian.
If you use the ipf rider, the sales charge works differently.

 

[Allen Trent]

I have one more question on Guardian PUAR. Is the 5% service fee on just the current year's PUA premium or is it on the whole cash value of PUA?

It is a load fee when the deposit is made. So, if you make only 1 lump sum purchsse it is 1 time. If you make annual purchases, it applies each year on the new premiums used to purchase PUAR, not on the piled up PUAR that are already built up

 

[Lloyds of Lubbock]

Correct.

 

[ls015]

It is a load fee when the deposit is made. So, if you make only 1 lump sum purchsse it is 1 time. If you make annual purchases, it applies each year on the new premiums used to purchase PUAR, not on the piled up PUAR that are already built up

Something is not quite right here. IF there is only a load fee on the PUAR and NO other expense, then SHOULDN'T all the dividend make it through to the cash value?

 

[Allen Trent]

Something is not quite right here. IF there is only a load fee on the PUAR and NO other expense, then SHOULDN'T all the dividend make it through to the cash value?

Yes, I believe it should. But keep in mind, the base policy has its own cash value & also its own dividend. The PUAR fund has its own cash value & its own dividend. Those 2 pots of money stay separate from one another. This is why the PUAR fund can be partially withdrawn whereas the base policy cash value can only be accessed by loans. Now, on an annual statement, these 2 separate items may be individually listed with their own face amount & cash value & then a combined "total" number shown for the face amount of both together & the cash value of both shown as a total amount.