GUL Vs FE LIFE

[policy doctor]

Maybe one of you agents can help me sort this thru.

The other day I was talking to a prospect about life insurance (F/NS/64) and she showed me an illustration from Transamerica.

It is a GUL to age 120, 25K Death Bene for $704/month.

I had just written an Am-Amico for 30k at $126/mo age 64F.

Unless there are some holes in this Transamerica ul I don't know about, that seems like a better deal.

Any insights on this Trans product?
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Wanted to add this to my post.

Looks like the guaranteed interest rate was 2.00%.

 

[inreverse]

looks like he is quoting preferred rates, would she qualify at that level? It jumps quickly depending on health.

 

[BenS]

Did you mean $704/year? That's what it looks like a GUL would be for Transamerica.

Is she willing to do fully underwritten w/ paramed exam? Is the perfectly healthy? If so, it looks like North American could give her a better rate for the GUL.

Just make sure she is aware of the difference between GUL and SIWL.

You can run a quotes on my website below without having to enter your contact info, hopefully that helps.

 

[jdeasy]

Maybe one of you agents can help me sort this thru.

The other day I was talking to a prospect about life insurance (F/NS/64) and she showed me an illustration from Transamerica.

It is a GUL to age 120, 25K Death Bene for $704/month.

I had just written an Am-Amico for 30k at $126/mo age 64F.

Unless there are some holes in this Transamerica ul I don't know about, that seems like a better deal.

Any insights on this Trans product?
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Wanted to add this to my post.

Looks like the guaranteed interest rate was 2.00%.

Other than it's UL, it's not a bad deal. You could do RNA fully underwritten whole life and it's a little over $800/yr for $25,000 face. No exam at that age and amount.

 

[policy doctor]

oh wait....i did a massive mistake. The premium on the GUL is $704/year.

The AM-Am is $126/mo = $1512 for the year.

That's why I was dumbfounded by the difference in premium and length of time.

BIg, big difference.
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JD,

That RNA premium is a hefty discount too.

 

[VolAgent]

oh wait....i did a massive mistake. The premium on the GUL is $704/year.

The AM-Am is $126/mo = $1512 for the year.

That's why I was dumbfounded by the difference in premium and length of time.

BIg, big difference.

The underwriting is going to be a big difference too. The GUL is going to be a lot stricter while the SIWL will be vastly easier for which to qualify.

Also, the GUL is going to be less forgiving. Miss a payment and let it go through grace period and no more policy. Depending on the age of the SIWL and thus the cash value, it may continue on for a while with reducing coverage.

 

[policy doctor]

Well American Amicable is a final expense whole life to 100. True there is no paramed exam required, just phone interview and their usual mib investigation.

The TransAmerica GUL does require a paramed exam....which she has not done yet.

A 25k WL with AM-AM would run her $106.24/mo....almost double the GUL.

 

[WinoBlues]

Maybe one of you agents can help me sort this thru.

The other day I was talking to a prospect about life insurance (F/NS/64) and she showed me an illustration from Transamerica.

It is a GUL to age 120, 25K Death Bene for $704/month.

I had just written an Am-Amico for 30k at $126/mo age 64F.

Unless there are some holes in this Transamerica ul I don't know about, that seems like a better deal.

Any insights on this Trans product?
- - - - - - - - - - - - - - - - - -
Wanted to add this to my post.

Looks like the guaranteed interest rate was 2.00%.

Per compulife:
Genworth $25,000 to age 105 prd = $48. Std+ = $54. Std = $56. to age 110 would not be much more. For the SIWL policy you could short pay or maybe double the face. Many 65 year olds qualify for preferred and many more for standard.

$50,000 to 110 = $87. Standard - Protective.

RNA Whole life is a good option as well.

 

[policy doctor]

Hmmm....quite a difference in premium. Haven't kept up with life insurance in many years....need to brush up.

I read some old posts on other threads. Can GUL policies increase their rates? In other words is it conditional on a certain rate of interest?

 

[VolAgent]

Hmmm....quite a difference in premium. Haven't kept up with life insurance in many years....need to brush up.

I read some old posts on other threads. Can GUL policies increase their rates? In other words is it conditional on a certain rate of interest?

Nope. It is guaranteed. You pay the premiums on time and in full and they guarantee the coverage stays in force, regardless of what the cash value does. In fact, in most the cash value goes to zero in just a few years.

The danger is, there is no cash value as a cushion in case something goes wrong.