LIFE INSURANCE

[peace123]

As an aside, you have people who are insurance brokers right here on this site answering a bunch of your questions for you. Maybe you should consider giving them the business or at the very least giving them a chance at it.

yeah if it works for us, I can consider or prefer giving business to someone from here.  So my current plan is $150K coverage for me and wife. They did not require health exam or anything. They do require health exam if we go for more then $150K coverage.  We don't have preexisting conditon, i have little higher blood pressure and I am taking blood pressure medicine.
What type of health exam term4sale requires? They require me to go get health check up from a doctor to see if I have pre- existing condition? If yes then I don't get coverage or premium will be more expensive?

[ah giten]

It's due to changes to section 7702. Companies can no longer use 4% as the guaranteed rate in calculating reserves. They have to use lower rates (and for the first time they get to choose which rate they will use for each product, which might result in offerings being a lot more varied between companies), which will obviously require higher premiums to fund the required reserves.

Thanks.
I have to say that I understand almost nothing you explained here.
But please don't take your time to elaborate.
Once I have the answer, Google will help me out.

[Yosel]

yeah if it works for us, I can consider or prefer giving business to someone from here.  So my current plan is $150K coverage for me and wife. They did not require health exam or anything. They do require health exam if we go for more then $150K coverage.  We don't have preexisting conditon, i have little higher blood pressure and I am taking blood pressure medicine.
What type of health exam term4sale requires? They require me to go get health check up from a doctor to see if I have pre- existing condition? If yes then I don't get coverage or premium will be more expensive?

reading your post here, let me say this "You are losing out a lot by NOT contacting a life insurance agent" who is a professional and a human being and confidential.
he/she will be able to give a lot more information as to how to obtain the most insurance (with your condition) with/without a medical exam, and for the lowest cost, or how to get the most value for your dollar. And only then you will be able to announce that you made an intelligent decision.

[skyguy918]

It's due to changes to section 7702. Companies can no longer use 4% as the guaranteed rate in calculating reserves. They have to use lower rates (and for the first time they get to choose which rate they will use for each product, which might result in offerings being a lot more varied between companies), which will obviously require higher premiums to fund the required reserves.

Where did you get the part about choosing rates? Or for that matter any relation to reserve funding? I'm not on the life side anymore, but this doesn't sound right.

Broadly speaking, these changes were requested by the insurance industry - as leaving the old 7702 rates in place despite the sustained low interest rate environment would eventually have squeezed the life out of most permanent insurance products.

[yos9694]

reading your post here, let me say this "You are losing out a lot by NOT contacting a life insurance agent" who is a professional and a human being and confidential.
he/she will be able to give a lot more information as to how to obtain the most insurance (with your condition) with/without a medical exam, and for the lowest cost, or how to get the most value for your dollar. And only then you will be able to announce that you made an intelligent decision.

Condition? Managed BP is not an issue afaik... we give out best rating class to people with bp meds every day.

Where did you get the part about choosing rates? Or for that matter any relation to reserve funding? I'm not on the life side anymore, but this doesn't sound right.

Broadly speaking, these changes were requested by the insurance industry - as leaving the old 7702 rates in place despite the sustained low interest rate environment would eventually have squeezed the life out of most permanent insurance products.

It is correct that there is a range on acceptable nonforfeiture discount rates because of the 7702 change. But its definitely not the first time that there's been a choice! The constraint that forced everyone to use 4% only became an issue a few years ago. Prior to that companies could (and did) use a lower rate than the required for enhamced cash value products.

[skyguy918]

It is correct that there is a range on acceptable nonforfeiture discount rates because of the 7702 change. But its definitely not the first time that there's been a choice! The constraint that forced everyone to use 4% only became an issue a few years ago. Prior to that companies could (and did) use a lower rate than the required for enhamced cash value products.

It sounds like you mean on a practical, holistic basis that there's now more flexibility? But re 7702 itself, the rates for the both 'test' calcs used to be specified - max of 4% (6% for GSP) - and essentially have now been replaced with other specified rates (NAIC valuation rate and AFR based-rate).

ETA: Also, where does non-forfeiture come in with 7702? Is it because of the CSV component? Feels like I've forgotten a lot more than I realized from my earlier rotations.

[yos9694]

It sounds like you mean on a practical, holistic basis that there's now more flexibility? But re 7702 itself, the rates for the both 'test' calcs used to be specified - max of 4% (6% for GSP) - and essentially have now been replaced with other specified rates (NAIC valuation rate and AFR based-rate).

ETA: Also, where does non-forfeiture come in with 7702? Is it because of the CSV component? Feels like I've forgotten a lot more than I realized from my earlier rotations.

Nonforfeiture dictates a maximum discount rate you can use for the cash value (125% of the val rate). 7702 prescribes a minimum accumulation rate. For a long time there was a lot of room in between. Recently both rates were 4%. This year the nonforfeiture rate dropped to 3.75 and 7702 dropped to 2.0, giving space in between again

Eta: thanks for coming to my ted talk

[ExGingi]

Thanks.
I have to say that I understand almost nothing you explained here.
But please don't take your time to elaborate.
Once I have the answer, Google will help me out.

Here are some resources (one of which I would assume @yos9694 isn't going to be a big fan of, but I am posting it as it is more geared towards laypeople).

https://bankingtruths.com/7702-changes-life-insurance-caa/

https://www.soa.org/sections/product-dev/product-dev-newsletter/2021/february/pm-2021-02-kwassman/

Of important note from the second article is the quantification of the impact on PUAs (which I often call "the best thing since sliced bread", and are extremely attractive for young people).

[ExGingi]

Nonforfeiture dictates a maximum discount rate you can use for the cash value (125% of the val rate). 7702 prescribes a minimum accumulation rate. For a long time there was a lot of room in between. Recently both rates were 4%. This year the nonforfeiture rate dropped to 3.75 and 7702 dropped to 2.0, giving space in between again

Explanation appreciated. Though it's probably way over the heads of most readers here.

[peace123]

Go to term4sale enter the info and then contact a broker to get more info or any “trusted licensed agent” here that I can contact or will pm me?

[Lurker]

Go to term4sale enter the info and then contact a broker to get more info or any “trusted licensed agent” here that I can contact or will pm me?

You aren't going to know the broker from term4sale any more or less than a DDFer, so I'd personally go with the DDFer.

[yos9694]

100% agree. For a person who doesn't have it all figured out on their own, the advice/guidance you'll get from a frum pro will be much more relevant than a random broker. And while someone who has it all figured out could probably use any broker, i'd say they're better off skipping the broker and buying direct.

[ushdadude]

100% agree. For a person who doesn't have it all figured out on their own, the advice/guidance you'll get from a frum pro will be much more relevant than a random broker. And while someone who has it all figured out could probably use any broker, i'd say they're better off skipping the broker and buying direct.

Agreed. Most important thing is to use a trusted broker that has your best interest in mind and doesn't just try to sell highest commissioned product.

[aygart]

the advice/guidance you'll get from a frum pro will be much more relevant than a random broker.

Assuming it is a frum person.

[Lurker]

Assuming it is a frum person.

Regardless, if you value this forum and it's members, you'll likely feel that your interests will be better served by DDF brokers vs a random broker from the internet.

[aygart]

Regardless, if you value this forum and it's members, you'll likely feel that your interests will be better served by DDF brokers vs a random broker from the internet.

Agreed, and why I quoted only a small portion of his post.

[peace123]

You aren't going to know the broker from term4sale any more or less than a DDFer, so I'd personally go with the DDFer.

who?

[Lurker]

who?

DDF insurance brokers, please reach out to peace123 via PM.

[whacked1]

You aren't going to know the broker from term4sale any more or less than a DDFer, so I'd personally go with the DDFer.

Precisely how i got my policy.

[ushdadude]

You aren't going to know the broker from term4sale any more or less than a DDFer, so I'd personally go with the DDFer.

any DDF broker should be able to get you the exact policy you find on term4sale