can insusarance company take mone form cash value or universal life insurance policy to pay premeium without consent from insured?
Total Comments: 36
Posted: Sat May 30, 2009 01:23 am Post Subject: insurance
Nationwide is my Insurance company...been dealing with them for a LONG time. I gave the agent my info ( 45 years old, smoke, etc.) and the quote he gave me was about $40.00 pr month, for 'Whole' Life.
Posted: Sat May 30, 2009 01:31 am Post Subject:
You could get $50k no-lapse UL for about the same price....or $100k UL if you stop smoking.
Posted: Sat May 30, 2009 02:38 am Post Subject: insurance
...and the UL bulids Cash Value, as well?
Posted: Sat May 30, 2009 03:03 am Post Subject:
Yes, but not as much cash value as the whole life. Do you want life insurance or a second bank account with more limitations? If you want the higher death benefit, buy the UL. If you want the second, more limited bank account with a smaller death benefit, buy the whole life.
Posted: Sat May 30, 2009 01:09 pm Post Subject: insurance
I appriciate the advice...thanks. And...that's the only difference..really? Of course, I would want the higher death benefit in my policy.
Posted: Sat May 30, 2009 03:09 pm Post Subject:
Can you cite an example of why someone would be better off with a whole life/term combination for $500k instead of a straight $500k no-lapse UL if they want the full $500k guaranteed forever and only have the $2500 to spend?
If you are looking solely at guarantees, they wouldn't want the whole life. By the same token, if we are only looking at guarantees, nobody should ever make an investment. (I'm not calling whole life an investment. It isn't.)
My point is that if a company has paid a dividend for every year for the last 100+ years, it doesn't make sense to make a decision and assume that the insurance company will instantly stop paying a dividend and never pay one again. That is exactly what is being done when one looks at the guarantees.
When making realistic assumptions, a participating whole life policy combined with term insurance does much better for a client than a guaranteed UL policy. This assumes that a client is not old. Older clients do much better with guaranteed UL policies.
Posted: Sat May 30, 2009 03:11 pm Post Subject:
Nationwide is my Insurance company...been dealing with them for a LONG time. I gave the agent my info ( 45 years old, smoke, etc.) and the quote he gave me was about $40.00 pr month, for 'Whole' Life.
Find a new agent. That isn't meant to be critical of your agent. A Nationwide agent can't do what is best for you. He can only sell Nationwide. The odds that Nationwide is the very best policy for you is slim to none. Property and casualty companies don't do a good job with life insurance.
Posted: Sat May 30, 2009 03:13 pm Post Subject:
Yes, but not as much cash value as the whole life. Do you want life insurance or a second bank account with more limitations? If you want the higher death benefit, buy the UL. If you want the second, more limited bank account with a smaller death benefit, buy the whole life.
There's a heck of a lot more to it than this.
Posted: Sat May 30, 2009 03:16 pm Post Subject:
I appriciate the advice...thanks. And...that's the only difference..really? Of course, I would want the higher death benefit in my policy.
There's lots of differences. For instance when you get older and if your finances get tight, with a guaranteed Universal Life policy, it will probably lapse if you can't make out of pocket premium payments. With a good participating whole life policy, you should be able to still keep your policy in force.
Posted: Sat May 30, 2009 05:29 pm Post Subject: insurance
I thought someone posted if you DO have to skip payments, on a UL policy, that they ( the Insurance Co.) can make the payment up with whatever the 'cash value' is of the policy.
Posted: Sat May 30, 2009 01:23 am Post Subject: insurance
Nationwide is my Insurance company...been dealing with them for a LONG time. I gave the agent my info ( 45 years old, smoke, etc.) and the quote he gave me was about $40.00 pr month, for 'Whole' Life.
Posted: Sat May 30, 2009 01:31 am Post Subject:
You could get $50k no-lapse UL for about the same price....or $100k UL if you stop smoking.
Posted: Sat May 30, 2009 02:38 am Post Subject: insurance
...and the UL bulids Cash Value, as well?
Posted: Sat May 30, 2009 03:03 am Post Subject:
Yes, but not as much cash value as the whole life. Do you want life insurance or a second bank account with more limitations? If you want the higher death benefit, buy the UL. If you want the second, more limited bank account with a smaller death benefit, buy the whole life.
Posted: Sat May 30, 2009 01:09 pm Post Subject: insurance
I appriciate the advice...thanks. And...that's the only difference..really? Of course, I would want the higher death benefit in my policy.
Posted: Sat May 30, 2009 03:09 pm Post Subject:
Can you cite an example of why someone would be better off with a whole life/term combination for $500k instead of a straight $500k no-lapse UL if they want the full $500k guaranteed forever and only have the $2500 to spend?
If you are looking solely at guarantees, they wouldn't want the whole life. By the same token, if we are only looking at guarantees, nobody should ever make an investment. (I'm not calling whole life an investment. It isn't.)
My point is that if a company has paid a dividend for every year for the last 100+ years, it doesn't make sense to make a decision and assume that the insurance company will instantly stop paying a dividend and never pay one again. That is exactly what is being done when one looks at the guarantees.
When making realistic assumptions, a participating whole life policy combined with term insurance does much better for a client than a guaranteed UL policy. This assumes that a client is not old. Older clients do much better with guaranteed UL policies.
Posted: Sat May 30, 2009 03:11 pm Post Subject:
Nationwide is my Insurance company...been dealing with them for a LONG time. I gave the agent my info ( 45 years old, smoke, etc.) and the quote he gave me was about $40.00 pr month, for 'Whole' Life.
Find a new agent. That isn't meant to be critical of your agent. A Nationwide agent can't do what is best for you. He can only sell Nationwide. The odds that Nationwide is the very best policy for you is slim to none. Property and casualty companies don't do a good job with life insurance.
Posted: Sat May 30, 2009 03:13 pm Post Subject:
Yes, but not as much cash value as the whole life. Do you want life insurance or a second bank account with more limitations? If you want the higher death benefit, buy the UL. If you want the second, more limited bank account with a smaller death benefit, buy the whole life.
There's a heck of a lot more to it than this.
Posted: Sat May 30, 2009 03:16 pm Post Subject:
I appriciate the advice...thanks. And...that's the only difference..really? Of course, I would want the higher death benefit in my policy.
There's lots of differences. For instance when you get older and if your finances get tight, with a guaranteed Universal Life policy, it will probably lapse if you can't make out of pocket premium payments. With a good participating whole life policy, you should be able to still keep your policy in force.
Posted: Sat May 30, 2009 05:29 pm Post Subject: insurance
I thought someone posted if you DO have to skip payments, on a UL policy, that they ( the Insurance Co.) can make the payment up with whatever the 'cash value' is of the policy.
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