by farm5 » Thu Feb 19, 2009 06:35 pm
It is a whole life policy and we have made 3 payments. We want to borrow out to pay off a car/school loan with the bank. The loan is $20,000.00 and were told we would have to take out another policy to pay of the loan in full. We are having a hard time understanding why we can only borrow only $8,500 if we put in $21,000.
Posted: Fri Feb 27, 2009 01:03 pm Post Subject:
Anyway, no one can properly answer this question without seeing the policy.
yes surely when anyone sees the policy papers then only one gets full information about the issue. it is the case in all the aspects. :wink:
Posted: Fri Feb 27, 2009 01:32 pm Post Subject:
Dgoldenz... remember we had this discussion on another forum where I explained that many people look at insurance as a savings acct. I believe this post made my point...
Anyway, no one can properly answer this question without seeing the policy. Yes, cash value is different than what one has paid in but no one here should be offering in depth advice without having seen the policy.
As per usual, Gary is dead on in his reply.
I agree that many people look at it as a savings account. Problem is....it's not. People should be buying no-lapse UL's for the death benefit and putting the difference of what that whole life contract would cost into a REAL savings account that they can withdraw from without penalties, interest, and the possibility of losing your guaranteed death benefit.
Posted: Fri Feb 27, 2009 04:39 pm Post Subject:
Yeah, they should but so many don't. I think it is important to really make this point clear to a client before putting them in a UL policy.
Posted: Fri Feb 27, 2009 05:20 pm Post Subject:
Yeah, they should but so many don't. I think it is important to really make this point clear to a client before putting them in a UL policy
We always make it very clear. Insurance is for death benefits. Investments are for investments. Insurance is not for investments. Would you want to pay 250% more to try to make it an investment (even though it isn't)? I know I wouldn't. That's why people need GOOD agents, not Jim Bob from down the street who just learned how to sell whole life New York Life policies but knows nothing about them.
Posted: Fri Feb 27, 2009 05:27 pm Post Subject:
I am sure you do. You KNOW what you are doing, which is obvious by how you answer the posts, but you would be amazed how many agents don't and then the crap hits the fan...
Posted: Fri Feb 27, 2009 07:11 pm Post Subject:
And there-in lies the rub...
Posted: Fri Feb 27, 2009 10:29 pm Post Subject:
The worst is trying to explain to someone that they were misled. At first they always seem to think you are just trying to steal business from another agent. It makes our job more difficult but that's okay. I feel good when I am able to help someone out of a mess. It bothers me when the mess is so big that there isn't much I can do to help.
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