Agents don't mention PUA rider, why?

[Allen Trent]

Thanks for all the posts. why do agents push L99 kind of policies instead of 10 pay? I would want to be done with 10 years of premium and also, won't the cash value build better in 10 pay than if it is spread out till 99?

Same reason so many consumers nowadays have mortgages into their 60s, 70s & 80s. Paying as much as possible as fast as possible builds equity in both property & life insurance, yet those of us that do are the unicorns. Most agents would rather write 10 pay if they can as they tend to make more new 1st year commission because the required minimum premium is much higher on 10 pay, so it isn't usually the agent pushing for more pay premium forever designs

 

[Lloyds of Lubbock]

What is your expeience with a life insurance company that you presume to know what most agents do?
PUA deposits are profitable to the insurance company.
Moreso in higher interst rate environments than lower.
As far as agents not showing you a ten pay;
Did you ask the agent why he or she recommended this particular product?
In a short period the 10 pay has become Guardian 3rd best selling product, so someone is selling it.
It thas bome so popular that companies such as NML put it in their product line.
You seem to be a young guy.
Hopefully you live a long life and during that lifetime interest rates may go up.
Unfortunately that great dividend engine you bought 10 years ago (10 pay) will not accept any fuel.
Your waiver of premium will cover you for 10 years instead of a possible lifetime.
If you want to max fund a policy, why only do it for ten years.
To max fund a ten pay you need to introduce a term element.
This has a cost, with a l99 you have much higher funding limits and no need to drag down your return with term insurance.
Did you look at the ltc rider, anl99 with pua will greatly increase your benefit.
The 10 pay is a great policy, it is the backbone of what my offfice sells.
It also locks your client into a very high premium.
With an l99 and PUA, in troublesome income years you can withdraw the PUA to pay premium instead of a an apl.
Yes the agent and company would rather sell base premium, but that does not mean that millions of dollars of PUA are not sold.
If the company comped you on pua as they do on base premium, the PUA would have little value.
Ask your agent to show you multiple designs, a tenpay max funded with term, an l99 funded to the max full pay and ten years offset.
Get the pros and cons of each.
I would advise you that if you go for a ten pay, pick up a convertible term policy that you can convert after the ten years.

 

[ls015]

You may not want to buy guardian as there are other fine companies out there.

What other companies would you recommend?

 

[Lloyds of Lubbock]

With all due respect, I know very little about you.
You could look at illustrations from all the mutuals and to be honest your guess is as good as mine as to which one will have the best performance.
Are early values more important than long term performance?
Health could be an issue, that would influence my choice of companies.
Guardian has a large choice of riders....some may be important to you.
NY Life and Penn have a life paid up at any age choice.
Mass is a great company.
NML has the best financials but you must work with an NML agent.
Find someone you want to work with, tell him or her what your goals are for your insurance and say you want to see different companies.
Good luck, I am sure you will do fine.

 

[ls015]

With all due respect, I know very little about you.

Well, you said "there are other fine companies out there" knowing very little about me too So, I asked about other companies. Not how they will fit me.

The only reason I am interested in Guardian is because of the Index feature. I would look at IULs too if only they offered 4% floor and 12.5% cap.

 

[Lloyds of Lubbock]

Actually I did. I mentioned NY Life, Mass, and NML
I think any whole life policy you buy from one of the big mutuals will turn out to be a good purchase.

 

[ls015]

Actually I did. I mentioned NY Life, Mass, and NML
I think any whole life policy you buy from one of the big mutuals will turn out to be a good purchase.

Isn't Guardian a big mutual? Yes, You mentioned their names but not how they are better than Guardian.
When someone decides to buy something and a knowledgeable, experienced agent like yourself makes a statement like "You may not want to buy guardian", it hits like a ton of bricks. I can't help but wonder what horrible mistake I am making by going with Guardian.

 

[Lloyds of Lubbock]

I already mentioned Guardian.

I said they are all good companies and would provide a good policy.
Guardian is a great company....I should know I spent 20 years there.
I think you are twisting what i said.
These points I mentioned are positive features to a Guardian contract.
Guardian has a 7 year own occ deg of disability.
Their waiver covers pua deposits.
Their pua waiver is extremely liberal
The ltc rider is an indemnity plan, rare in this industry.
The gio is one of the best available and is covered by waiver.
They have an index option, that many find appealing.
The gom charge is a lower rate than the other mutuals..
You may not want to buy guardian as there are other fine companies out there.
But to make your decision based on direct recognition is ridiculous.
I am pretty sure you mistook this.
I did not recommend any company nor did i diss any company.
All I said is direct rec or variable loan does not make or break a deal.
Just so you will know, I can offset my premium on one of my Guardian policies after 14 years with no pua added......not to shabby

 

[ls015]

I already mentioned Guardian.

I said they are all good companies and would provide a good policy.
Guardian is a great company....I should know I spent 20 years there.
I think you are twisting what i said.
These points I mentioned are positive features to a Guardian contract.
Guardian has a 7 year own occ deg of disability.
Their waiver covers pua deposits.
Their pua waiver is extremely liberal
The ltc rider is an indemnity plan, rare in this industry.
The gio is one of the best available and is covered by waiver.
They have an index option, that many find appealing.
The gom charge is a lower rate than the other mutuals..
You may not want to buy guardian as there are other fine companies out there.
But to make your decision based on direct recognition is ridiculous.
I am pretty sure you mistook this.
I did not recommend any company nor did i diss any company.
All I said is direct rec or variable loan does not make or break a deal.
Just so you will know, I can offset my premium on one of my Guardian policies after 14 years with no pua added......not to shabby

Thanks! Are there any negatives?

 

[Lloyds of Lubbock]

Thats a loaded question.
No company is the best at everything.
I think you will be very happy.