Airborne1 and those that do not care for W/L

[Guest]

Airborne1 and others who do not care for W/L:

Airborne1 stated in another thread:

I'm no longer in the habit of bashing my head against the wall with folks who think W/L is even a decent product, much less a great one.

I am researching CV insurance for my children. I welcome all opinions, that is how one learns. Would you be so kind as to share some reasons you do not think W/L is a decent product.

Is it because UL's, EIUL's and VUL's are available and they are far superior?

Is there something inherently undesirable about them few people focus on?

I really appreciate all comments.

Thanks so much

 

[STIBROKER]

put me down as WL are great for kids.......

 

[Guest]

Stibroker

put me down as WL are great for kids.......

Thanks for your input.

1. Why great for kids.
2. Does that mean not for adults? Why?

 

[STIBROKER]

Thanks for your input.

1. Why great for kids.

because you can not sell them term and its cheap and guaranteed....

2. Does that mean not for adults? Why?

to expensive to cover the face amount needs.......

 

[James]

I suppose that I'm on the W/L is preferable. The UL structure will allow more flexibility but that comes at a cost. If a DB is the main objective then a W/L is without a doubt the best way to go. If one needs flexibility as in DB, Premium then the UL is preferable. As in debt management the UL generally is more desirable with its flexibility, even though WL is adding in flexibility also of late.

 

[STIBROKER]

If a DB is the main objective then a W/L is without a doubt the best way to go.

really....how much would 5 mill in WL run me......

 

[Guest]

Stibroker

really....how much would 5 mill in WL run me...

Wouldn't it become prohibitively expensive in later years whereas the W/L woulld stay level?

Isn't it a pay now or pay later proposition?

Interesting side note on UL/VUL: I found Sun Life of Canada (not licensed to sell the product in the US - - I don't think) has four options.

In addition to what is traditionally offered in the US (I forget if it is called option A and B or option 1 and 2), they offer an inflation adjusted DB. So, if you buy a million dollar policy and inflation next year is 3%, they adjust the DB to $1,030,000.

They also have a policy where the DB remains constant until the tail end of the policy. For example, let's say you got a $1,000,000 UL/VUL. Well, say starting at age 50 or 55 it declines sharply and is readjusted say to $50,000. A nice feature to keep the COI affordable.

 

[James]

Stibroker

really....how much would 5 mill in WL run me...

Wouldn't it become prohibitively expensive in later years whereas the W/L woulld stay level?

Isn't it a pay now or pay later proposition?

Interesting side note on UL/VUL: I found Sun Life of Canada (not licensed to sell the product in the US - - I don't think) has four options.

In addition to what is traditionally offered in the US (I forget if it is called option A and B or option 1 and 2), they offer an inflation adjusted DB. So, if you buy a million dollar policy and inflation next year is 3%, they adjust the DB to $1,030,000.

They also have a policy where the DB remains constant until the tail end of the policy. For example, let's say you got a $1,000,000 UL/VUL. Well, say starting at age 50 or 55 it declines sharply and is rfeadjusted say to $50,000. A nice feature to keep the COI affordable.

You can't argue with the likes of Sti when he floats out something like "how much is it for 5 mill". Obviously someone making 50 grand a year couldn't afford a 5 mill or for matter a 1 mill WL or UL for the most part. Yet I would suggest that is overinsured, of course one can find situations where it may apply but for the most part I don't run accross it.

 

[Guest]

James, if I may:

I know you are a big proponent of WL. May I ask you why?

1. Why do you like it so much. (And I do not mean that argumentatively, just to elicit a response). I can see that the benefits are: (1) permanent coverage, (2) level premiums, and (3) more affordable than term (in the later years). But as I see it, it takes decades to build up any decent cash value. An insured should be awful young when they start it (ofcourse, they probably could not really afford a decent DB) You seem to really like the CV aspect of it especially the LTC (riders ?). It really intrigues me why you seem to be so enthusiastic about the product - - to me it seems as if though it takes a lifetime to build up the CV, hence hardly noteworthy.

2. I know you have said WL is getting more flexible. How?

3. I am curious why it builds up cash value - - why was it designed like that. Do you have any idea. What is the historical origin/context? Let's face it, what product sets aside part of your payments in a savings account for you (okay, I suppose credit card rewards programs do to an extent and airline frequent flier miles, but what else). What I mean by curious why it builds up cash value, what were the designers of the product thinking/intending. What is the rationale to accumulate CV? Is my question clear? I wonder if originally, maybe 100 years ago, it started out as a savings program with a DB in case you did not reach your savings goal when you died.

4. Which came first, term or WL?

5. If I may ask your further indulgence, would you mind describing the top two or three ideal candidates or scenarios for WL.

I guess I really ask, because I see it kind of like a "vanilla" flavored product (I don't know if that makes sense. You walk into a Baskin Robbins and one is attracted by all the other ice cream with fancy names and colors but by golly, vanilla sells and it is fundamental to the industry).
Further, I am not that impressed with the buildup of CV. As I said earlier, one better start when one is awful young. But then an advantage is the predictable premium that one can just pay on auto-pilot; takes no work, no monitoring, no thought. No slight intended, those are good things. If one buys insurance, they want a sure thing (or at least should have it available) they do not need to take risks wondering if they will be able to afford the COI in 10 years or how much the minimum premium will be next year to keep the policy in force.


Anyway, since I see it as a plain Jane vanilla product and you are so enthusastic about it (and are the professional) I obviously do not appreciate all the subtleties, attributes, and benefits of it.

Thanks James.

 

[Airborne1]

Marcircus

I tried sending you an email, but it got bounced back.

Also, a PM.

What industry are you in ? Not asking because I'm nosy, but it would help to know how to respond to some of your questions.