Help Me Understand My Policy!

[DHK]

Compulife is Robert Barney's company.

I don't know of any other alternatives, but Compulife is a proven platform. Just because you might not like Robert Barney doesn't mean that his service wouldn't fit your needs on an affordable basis.

 

[Golfnut2112]

If it's all semantics... then why does yours say that the cash value is kept by the company and my semantics say that the cash value is paid out to the client?

If you were the client... which would you rather hear? I'd rather hear that the insurance company gives me the death benefit which is the cash values + the difference from the face amount (net amount at risk) rather than "you get the face amount instead of the cash values".

BTW, this is the argument that "termites" use to say that permanent life insurance is a rip-off because you (supposedly) don't get to keep your cash values, nor do your beneficiaries. I choose to turn that perspective into my advantage by showing that the cash values ARE paid out.

When you die, the cash value is not paid out IN ADDITION TO THE STATED FACE AMOUNT when you die. Gee whiz.

As far as UL with increasing costs... I said IN COMPARISON TO WL... there is no increasing costs of insurance. UL is "unbundled" and has flexible premiums and varying (not 'variable') interest rate credits, therefore the costs of insurance are disclosed... while WL is a fixed, bundled product with guaranteed interest rates, therefore no such cost of insurance disclosure is necessary in the illustrations.

Then I compared the disclosure requirements of a bank CD to a mutual fund. Bank CDs don't disclose costs because it has a fixed deposit and a fixed interest rate for a set period of time. Mutual funds have no fixed or guaranteed interest rates, and can lose values, therefore disclosures in the prospectus is given regarding management costs.

Please quote me accurately if you want to disparage whatever I've said.


BTW, while I appreciate long-time client service in the industry, I've found that most people who have decades of experience are also stuck in old ways of thinking. My old GA was like that. He kept saying "I don't know much, but I've got 25 years experience, so what does that tell you?" By not being able to back up what he said and taught, I discounted it as being tactics and strategies from a bygone era.

As far as the VSA Lesson on Life Insurance, it brings up how life insurance works. Those diagrams were taught to me back in my pre-licensing days. The longer you keep paying on a permanent policy, the higher the cash values grow and the lower the net amount at risk.

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Oh, and I have earned my ChFC designation too.

I think you hit it on the head when you said what do clients want to hear, either way its the same death benefit. The insurance industry really has not changed over the years ,you hear about the same concepts (tax free income) but itstead of using VUL its now WL of IUL. Also some new UL's have the guaranteed death benefit. The biggest change I would say was when A.L Williams started selling 20 year term at that time most companies I was aware of sold either increasing and decreasing premium or 5 year term.

 

[pfg1]

It is a very good deal. The WL will let him keep access to the CV if he needs it in the future. The GUL would just eat up the CV.

Also, based on the current performance, it is very likely that the policy will be over $100k by the time he is in his 60s or 70s. An inforce would definitely show over $100k by his 80s.

Also, this is a P65 policy.
Your scenario would have him pay cumulative premiums of $15,400. (over 77 years)
The current policy will only be a cumulative premium of $8,400. (over 42 years)

So your suggestion would have him paying almost double the Premiums... with no access to CV... and the DB at life expectancy will likely be about the same.

But I do agree that it would benefit him to get an inforce illustration so he has a better understanding of what the policy will look like in the future.

Spot on right there SC. No way would I surrender this policy, and DEFINITELY not 1035 into a GUL. That honestly is a horrible idea. If he needs more death benefit now, term is dirt cheap at this age.

pancaker...be thankful your parents were smart enough to do this for you. If/when you have kids, do the same thing for them. Paid up at 65 is a great WL plan. As you can see, it just gets better and better every year. You'll be amazed at what it looks like at 65, and it will keep growing even after that point.