I Would Like Your Input - UL from Protective Life

[Nikita]

I have a client who just emailed me about this. Her husband is a 52 year old non-smoking male, with mildly hbp and mildly overweight. They just received a quote for Universal Life through Protective Life, out of Birmingham, Alabama.
For a $500,000 death benefit, they were quoted $100/month.

How can this be so cheap? What is the catch? I have previously only sold Whole Life, but I don't see how any kind of Life can be so cheap for $500,000 death benefit. She has asked me if I can beat this quote. I don't even know where to start....would appreciating input and feedback.

 

[Newby]

I have a client who just emailed me about this. Her husband is a 52 year old non-smoking male, with mildly hbp and mildly overweight. They just received a quote for Universal Life through Protective Life, out of Birmingham, Alabama. For a $500,000 death benefit, they were quoted $100/month. How can this be so cheap? What is the catch? I have previously only sold Whole Life, but I don't see how any kind of Life can be so cheap for $500,000 death benefit. She has asked me if I can beat this quote. I don't even know where to start....would appreciating input and feedback.

UL is flexible premium. They can pay as low as they want because it's not guaranteed.

Find out when the cash value goes to zero on the guaranteed illustration. This isn't whole-Life. It's just UL.

 

[Cornelius]

Term4Sale - Instant Term Life Insurance Comparisons shows a Protective custom choice UL No lapse 20 for $106. Select preferred. Use 1961 for the year for age 52.

 

[Nikita]

UL is flexible premium. They can pay as low as they want because it's not guaranteed.

Find out when the cash value goes to zero on the guaranteed illustration. This isn't whole-Life. It's just UL.

I don't see why anyone would buy a product that isn't guaranteed...what's the draw with UL? Under what circumstances would you recommend the client get a UL instead of a WL?

 

[Tahoe Ray]

Protective's Custom UL is really more of a term policy. It does have a nice feature of decreasing the face once the level period is up instead of terming out or forcing a reentry premium. I believe that it also accepts 1035s.

There are plenty of reasons to write UL over whole life. It really depends on the client need.

There are several guaranteed UL products that will guarantee more DB for the premium dollar that WL, especially at older ages. Also, it may be (depending on design) a more effecient vehicle for cash accumulation and subsequent distributions.

The life forum has a number of discussions on this topic. You can probably find a lot of good info in some older threads.

 

[Cornelius]

How much do you assume people really know about the policy they buy. I once reviewed a person's policy who said they had a twenty year term. It was a ten year term. I showed the person in the policy it was a ten year term. He said the agent told him it was a twenty so it was a twenty.

After that nothing surprises me. Wish I could remember the guys name for personal reasons.

 

[WinoBlues]

UL is flexible premium. They can pay as low as they want because it's not guaranteed.

Find out when the cash value goes to zero on the guaranteed illustration. This isn't whole-Life. It's just UL.

Not necessarily true. Actually in today's market rarely true. I beleive more GUL is sold than non GUL. I get a call every so often when some guy is trying to tell one of my people that their GUL is not guaranteed.

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I have a client who just emailed me about this. Her husband is a 52 year old non-smoking male, with mildly hbp and mildly overweight. They just received a quote for Universal Life through Protective Life, out of Birmingham, Alabama.
For a $500,000 death benefit, they were quoted $100/month.

How can this be so cheap? What is the catch? I have previously only sold Whole Life, but I don't see how any kind of Life can be so cheap for $500,000 death benefit. She has asked me if I can beat this quote. I don't even know where to start....would appreciating input and feedback.

Sounds like a 20 year plan. guaranteed 20 years. Premium is $115.58 per month. At the end of the 20 year term price stays the same but the death benefit decreases. yr 21 = $168,955.00, age 83=$48,273.00, age 87 = $30,823.00

For comparison sake - Assurity SIWL = $115.31 for $49,500
GUL = $110,000.00 $103. fully underwritten or $110,000.00 @ $118. Non Med. decision in about 24 hours. Bout guaranteed to age 121. No cash value to speak of. If it were my client I would encourage WP as well.

Hope this helps.

This is all assuming he qualified for preferred. most controlled HBP and Lipids do.

 

[Nikita]

Life rate should never very cheap, but some time we cannot utilize in our life. That time we get in me increasing other benefit. So some time does not prefer in our luck. That time we want to ensure how can get in some life security. So we can hope earn someone.

I have no idea what you just said

 

[pfg1]

I have no idea what you just said

LOL, neither do they

You should let them know that the death benefit won't be permanent (forever). They may be under the impression that it will.

 

[WinoBlues]

LOL, neither do they

You should let them know that the death benefit won't be permanent (forever). They may be under the impression that it will.

That is true. Looks like they he sold 20 year termUL. However, they can make that policy permanent Premium is going to be $450-$500 month. Pretty good rate.