Monday, January 21, 2008
Show The Value Of The UL With A No-Lapse Guarantee
Quick! Which company has the lowest guaranteed annual premium on a universal life with no-lapse guarantee (ULNLG) for a male, age 50, $1 million death benefit? No doubt you know the company or know at least which carriers are in the top 5.
But does the guaranteed lowest annual premium give the customer the best value? It may or may not. Certainly, if the customer could care less about cash values (either guaranteed or illustrated) and just wants a term-to-death policy, the absolute lowest guaranteed premium may be the perfect fit.
Fast forward 15 years. Assume a new insurance product has been developed. A producer looking over this customer’s insurance needs mentions this new product to the customer. The customer wants the new product because of the differentiating features. The producer believes that it would be wise to 1035 exchange the current policy into the new one but, looking at the current in-force policy, there’s no significant cash value to exchange. The customer questions the lack of cash values. Yes, the customer remembers buying a term-to-death policy but did not realize this would happen...
National Underwriter: Show The Value Of The UL With A No-Lapse Guarantee
But does the guaranteed lowest annual premium give the customer the best value? It may or may not. Certainly, if the customer could care less about cash values (either guaranteed or illustrated) and just wants a term-to-death policy, the absolute lowest guaranteed premium may be the perfect fit.
Fast forward 15 years. Assume a new insurance product has been developed. A producer looking over this customer’s insurance needs mentions this new product to the customer. The customer wants the new product because of the differentiating features. The producer believes that it would be wise to 1035 exchange the current policy into the new one but, looking at the current in-force policy, there’s no significant cash value to exchange. The customer questions the lack of cash values. Yes, the customer remembers buying a term-to-death policy but did not realize this would happen...
National Underwriter: Show The Value Of The UL With A No-Lapse Guarantee
Permalink posted by markw @ 1:27 PM 
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