Young Adults Life

[WinoBlues]

Back story: the parents and in laws are long time clients. I have maybe 25-30 cases in the extended family. First policy was maybe 20 yrs ago. I have 20 pay GULs on the parents.

Three sons ages 22, 20, 18, all very healthy. 18yr old just got a speeding ticket. All Living at home and listen to parents.

Parameters- 1million of coverage each, maximum(ish) premium $500mo each. Living benefits. Mom wants CV, Dad is looking at lower cost, but guarantees. 22yr old is married and expecting a baby soon. The boys and dad are all aircraft mechanics. Income + - $4k mo.

To get the conversation started I showed a WL with Living Benefits and GULs with ROP.
The Living Benefits really hit a nerve. However, I think DO is important.

Thoughts on products?

 

[scagnt83]

Guardian. You can blend term and get the Premium similar to a GUL. But you have a ton more Cash.

 

[WinoBlues]

Guardian. You can blend term and get the Premium similar to a GUL. But you have a ton more Cash.

Thanks, What is the product name?

 

[scagnt83]

Thanks, What is the product name?

For a young adults Id recommend the L99 WL. Check you email.

 

[PrivClientSG]

"22yr old is married and expecting a baby soon"

Human Economic Life Value. Sell WL, remainder in term.

Nice "family" client! Good luck!

 

[PrivClientSG]

If you are going to consider Guardian -- which you truly and absolutely can't go wrong with -- make sure you add on the minimum required PUA rider/payment. I believe it is now $250.00 annually. It's a must! At a minimum.

As far as product, with the proper design, long-term, their L-99 product will probably "outperform" their L-95 product (on CV and DB). What is long-term? LOL. Perhaps beyond 20 years. However, their L-95 product will "outperform" in the short-term and provide more flexibility, options, etc. What is short-term? LOL. Well, maybe 20 years. You've got some very young people here. Life is unpredictable. Having some flexibility and options in the short-term, might be worth some lower long-term CV and DB. Look at it.

While some say it is not a fair comparison, my friend always used to run the same "spend amount" to compare the two, but being the L-99 had a lower premium, to make it the same spend amount, he would add more PUA. Sure, same spend amount, but as some say, it might not be a fair comparison.

Don't get caught up in the weeds. Great company, great products. Good luck!

 

[Lloyds of Lubbock]

It is not a fair comparison.
L99 with PUA has an entirely different comp than an l95.
The comparison is using the same spend amount.
I would bet by year 10 the l99 catches up in cash value.
BTW I have an l95 because of the flexibility of the early cash value.
The epua is very important rider to have although with the 10 percent sales load I am not sure how long it takes to outperform base premium.

 

[Allen Trent]

If you are going to consider Guardian -- which you truly and absolutely can't go wrong with -- make sure you add on the minimum required PUA rider/payment. I believe it is now $250.00 annually. It's a must! At a minimum.

what is the current flexibility of that PUAR--IE: if you max it out, how much max x base can you do? If you then dont max it out, are you limited going forward or can you max out again after not putting anything in PUAR or smaller amount? Lastly, if PUAR not utilized for X years, does the rider drop off & cant be used at all going forward to make PUAR payments?

thank you & especially if you have anything current with the PUAR bumpers & parameters being offered today.

 

[Allen Trent]

10 percent sales load I

wowza, that is a bit steep for PUAR load....but then again, maybe they are overpaying on the comp of the PUAR that causes it to need to be 10% to cover the comp on PUAR premium and cost of the paid up insurance/reserves, etc

 

[scagnt83]

For most situations, assuming the same premium, using the newest versions of the products (not available in all states yet).... year 13 is when L99 eclipses L95 in Cash Value.

Keep in mind there is a brand new L99 available using a different guaranteed rate.

They both naturally offset in the same year now, at least in most situations using all Base Premium.