Young Adults Life

[scagnt83]

Personally, I feel that L99 serves most clients the best. Unless they are certain about using Cash Value in the first 15 years. But even then, do they really need as much as possible? Are they really taking a max loan?? 95% are not, probably more.

Now with the onset of LTC and Chronic Riders, it starts to make even more sense to utilize L99 over L95.

Even with the Guardian career LBS philosophy of WL as a safety net for down years, or a permission slip to spend other assets.... all of that is 15+ years in the future 90% of the time...

Very few reasons to use L95 these days. It had its place years ago. Still does, but L99 is very competitive now. Business cases can certainly warrant it. Or when you are hitting max insurability limits for the desired premium on a L99.

And this is a modern take on the debate. 10 years ago or 15 years ago, thats a totally different conversation.

 

[scagnt83]

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

LMAO. Overpaying is not in Guardian's vocabulary.

 

[Lloyds of Lubbock]

"Year 13 is when L99 eclipses L95 in Cash Value."
I guess I am showing my age a bit here!
I have no idea what PUA comp is.
I think it used to be 3%.
If I am not mistaken the higher sales load made it possible to give a better return on the back end.

 

[scagnt83]

"Year 13 is when L99 eclipses L95 in Cash Value."
I guess I am showing my age a bit here!
I have no idea what PUA comp is.
I think it used to be 3%.
If I am not mistaken the higher sales load made it possible to give a better return on the back end.

Its 3.5%

And I believe you are correct. Others who have lower front end loads just build in other expenses over the duration. Its all marketing, only so many cents in a dollar.

 

[Lloyds of Lubbock]

I have always thought sales loads on PUA were misleading.
Not all companies use the same Net Single premium.
For example Male 35 preferred.
Company A has a sales load of 5%
Let's say a $1000 of PUA buys $2000 death benefit additions
Company B has a 10% sales load.
But a $1000 buys $2250 of death benefit additions.
Company B is actually a better deal.
Company A in their marketing material ,and they probably would,
say their PUA has only a 5% sales load.
If you have Mass software and you do an xl printout, you can see the NSP year by year.
Not real exciting stuff.

 

[Allen Trent]

I have always thought sales loads on PUA were misleading.
Not all companies use the same Net Single premium.
For example Male 35 preferred.
Company A has a sales load of 5%
Let's say a $1000 of PUA buys $2000 death benefit additions
Company B has a 10% sales load.
But a $1000 buys $2250 of death benefit additions.
Company B is actually a better deal.
Company A in their marketing material ,and they probably would,
say their PUA has only a 5% sales load.
If you have Mass software and you do an xl printout, you can see the NSP year by year.
Not real exciting stuff.

True, then it gets muddied up further as initial purchased face from puar is only 1 component. Some have different dividend scale on PUAR rider than on base policy and the dividend buying more future PUA can buy a different face amount than the PUAR rider would with same exact dollars that PUA from dividends does.

Anyone have any info on the current minimum/maximums of PUAR & rules on continuing to fund PUAR at X level or what causes PUAR to expire if not utilized for X yrs

 

[Lloyds of Lubbock]

alan,
Try this

 

[Allen Trent]

alan,
Try this

thanks--but that brochure doesnt give much detail about the limitations of their PUAR

only thing I see mentioned is you have to pay at least $250 every single year or the rider ends. Doesnt appear any years can be skipped & doesnt talk about how future years limitations are based.

IE: Carrier 1 says Minimum $100 per year, maximum of 3x base premium. each year the maximum you can pay into PUAR is the amount you have paid the prior year. Always can put in 1x base into PUAR if rider is active. Rider goes inactive if 5 consecutive years of $0 put into PUAR

 

[Lloyds of Lubbock]

Alan,
The $250 is like a door opener.
As long as you pay that $250 scheduled you may additional unscheduled payments.
I am not up to speed on PUA limits..retirement does that to you.
If you do not make any PUA payment, I believe the rider is terminated.