Still Not Sold???

[xrac]

............Your WL is your safety net, it's there if you screw up on the other stuff. It will be solid and dependable and loyal to you. It's a plow horse, not a race horse. What you have to avoid is those who try and compare the two to get you to abandon the plow horse (BTID) You actually need both in your life. The race horse will give you the excitement you want. It will win and lose for you over time. The plow horse will just make sure you're fed over time, by doing the work, the boring work in planning. Cheers.

That is a good analogy!

 

[JRoot]

There's a couple resident whole life guru's here that give out great advice: Larry Tew and BNTRS. Hopefully they chime in for you.

 

[Larry Tew]

I appreciate JRoot's endorsement. Otherwise I usually don't post in threads supposedly started by consumers because in reality I've caught a few consumers to actually be agents stirring the pot for kicks.


But let's assume you're a consumer. Here are a few thoughts.


1. Your comment about commissions is misguided. I don't know what you do for a living, but whether it's you or somebody else, somebody somewhere in your economic food chain is on commission. If you're a small business owner, you're selling something... a product, idea, or service. Regarding your agent, the fact that he sold you a $35k annual premium - 15k being fully commissionable and the 20k PUA paying almost nothing, your agent was anything but greedy. BTW, no one but an agent even knows what a "PUA" is.


2. The PUA contribution will generate a long-term return of 4% or more with no risk, tax deferral (tax free if done correctly) and almost 100% immediate liquidity. Enough said.


3. Look at the BTID piece thread that DHK kindly referenced. I wrote it. If you read that piece and still think BTID is a winnable strategy, read it again.

 

[jdeasy]

No, I totally agree with you about it made sense and I will talk out our plan again with him after he gets back from vacation. But I am probably an agent's least favorite client as I need to periodically check my gut feelings. One more thing, are monthly premiums usually much more expensive than yearly payments in your experience??

Actually you seem like the kind of client that most of us would want. Educated on what you boaught and why and willing to pay for what you want.

I could many clients just like you.

 

[BNTRS]

20k in the PUA rider on 15k premiums? first thought is creating a MEC by doing that. Could be wrong, but maybe too much extra into the policy. Just a feel, not certain.

Mmm, maybe, but he could likely be close to an allowable $20k PUA purchase without MEC problems. Based on his age, death benefit and premium, he probably has close to an additional $10k in allowable premium before MEC under original 7-pay premium. Since he likely used up none of that in the first year, he accumulates that forgone opportunity to overfund and now that year two has arrived he can make use of last year's and this year's.

@DetDent:

You can read many great articles about cash value life insurance here: http://theinsuranceproblog.com/

Full disclosure, I own that site so of course I use an adjective like "great." I would have directed you to specific posts, but we appear to be having a problem with how the categories direct to content at the moment. Hopefully this will be resolved by next week.

UPDATE:

It's fixed, so you can now go here for information on life insurance as an asset

 

[LGilmore]

"Mmm, maybe"

Yea, just a gut feel at the time. Nothing run to verify one way or another. Just one of those amounts where you need to think about it a bit. I mean you don't know for sure till you plug it in. It would be something I would look for. Not certain either way right this moment, which would be why I would run it if it were my client. It's the old if there's a doubt, make certain.

 

[xrac]

There's a couple resident whole life guru's here that give out great advice: Larry Tew and BNTRS. Hopefully they chime in for you.

DetDent, you can direct any questions to these two gents and receive knowledgeable accurate information. They are PROs.

 

[BNTRS]

"Mmm, maybe"

Yea, just a gut feel at the time. Nothing run to verify one way or another. Just one of those amounts where you need to think about it a bit. I mean you don't know for sure till you plug it in. It would be something I would look for. Not certain either way right this moment, which would be why I would run it if it were my client. It's the old if there's a doubt, make certain.

Nothing wrong with verifying at all. One nice feature to Guardian's client management is that they keep a running total of maximum PUA before MEC. So his agent could easily look up the policy and tell him exactly what could be placed into the policy before a the MEC line is crossed.

----------

Thanks Xrac and JRoot!

 

[Larry Tew]

Thanks for the kudos, xrac.


To LGilmore... a 15k base premium should be capable of a 20k PUA unless the base policy already has a high premium to face, and the Guardian L99 doesn't. Even if the 20k PUA couldn't be sustained to age 65, it almost certainly would fit for several years in the beginning.

 

[Bob_The_Insurance_Guy]

No, I totally agree with you about it made sense and I will talk out our plan again with him after he gets back from vacation. But I am probably an agent's least favorite client as I need to periodically check my gut feelings. One more thing, are monthly premiums usually much more expensive than yearly payments in your experience??

Sounds like you like the guy, but hate what he does for a living. That's a shame. When he gets back from vacation, talk to him. He might surprise you. Every concern/question you have strengthens your relationship with him, and allows you to see the value he provides. A client who wants to talk to me every 3 months is a friend, not a pest.

Getting a second opinion from strangers is very dangerous, and not very ethical on your part. I would have given him a chance first, then if something didn't sound right, then post here.

How do you know how ethical we are? Huh?