Favorite Whole Life Insurance Policies

[FexMex]

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MoO CWL cannot be owned by the insured at policy inception..

 

[Newby]

why not do the right thing for your client and get them term

That's an interesting new concept. What should they do with the difference in the premium?

 

[BNTRS]

I liked your original choices. Those participating policies work. Look at track record of those dividends versus the inconsistency that is inherent in a ul and I am a big fan of whole life. The big banks all have a ton of it.

Wrong. Big banks hold a relatively small amount of whole life insurance compared to universal life insurance. Regs only allow general account cash values to be recognized at 50 cents on the dollars by a lending institution, so BOLI products typically use separate accounts to allow 100% of CSV to be recognized on balance sheets. For this reason, the big banks tend to favor universal life insurance specifically using separate accounts in all cases.

 

[scagnt83]

Wrong. Big banks hold a relatively small amount of whole life insurance compared to universal life insurance. Regs only allow general account cash values to be recognized at 50 cents on the dollars by a lending institution, so BOLI products typically use separate accounts to allow 100% of CSV to be recognized on balance sheets. For this reason, the big banks tend to favor universal life insurance specifically using separate accounts in all cases.

This is correct. 95% of BOLI policies are UL. If I had to guess I would say that 80% of COLI policies are some form of UL.