LIFE INSURANCE

[ExGingi]

First, you already mentioned it. But adverse selection probably isn't as big a deal as some think it is for modest rate changes. Life insurance switching costs can be insanely high, I find it hard to believe that someone would give up a 10 year old UL policy because COIs increased 5%.

UL isn't YRT!

A COI change to a UL product (we have seen those, especially in the wake of STOLI) very often isn't immediately felt by a UL policyowner, as the premiums paid aren't directly tied to COI (should I say except in the case of IOLI?)

[yos9694]

UL isn't YRT!

A COI change to a UL product (we have seen those, especially in the wake of STOLI) very often isn't immediately felt by a UL policyowner, as the premiums paid aren't directly tied to COI (should I say except in the case of IOLI?)

Both are indeterminate!

Address my comment about switching costs. Feel free to swap in a 10 year old YRT instead of UL

[ExGingi]

Mortality just isn't that volatile. But if you want to talk interest rates.... they survived declining and low interest rates, but can they survive rising rates?

If they use good strategies, such as offering Guaranteed Issue of new Whole Life to people who were underwritten within the last 4 years. Thereby bringing in additional Whole Life premiums to be invested at current higher rates, while diversifying mortality risk by creating proper guidelines for the program.

[ExGingi]

Both are indeterminate!

Address my comment about switching costs. Feel free to swap in a 10 year old YRT instead of UL

I am not disagreeing with anything you said, I just commented that an increase of UL COI (or other costs) is more common than increases of YRT rates. Part of that might be that the COI increase in the UL isn't immediately felt by the policyowner (and if the policy was structured for accumulation, might not even change much as far as the premium outlay is concerned).

[yos9694]

I am not disagreeing with anything you said, I just commented that an increase of UL COI (or other costs) is more common than increases of YRT rates. Part of that might be that the COI increase in the UL isn't immediately felt by the policyowner (and if the policy was structured for accumulation, might not even change much as far as the premium outlay is concerned).

You're completely correct. I'll add that lawsuits and judgments against the insurance company are (equally) common

[ckmk47]

Would love to hear from people what they think for what I currently was offered.

 Am I taking a unnecessary risk that I'm not locked in to a set price.
 Is there better options that I should look into?
 I see something about waiver of premium charge, is that something I'm forced to pay? is it something I should be paying for?
thanks!!

So what I understand from the discussion between ExGingi & yos9694:
If you're planning on keeping term insurance for the long haul, get level term.  It will be more expensive initially, but will be cheaper down the line.
But term life insurance is not the better way to go.  Get something long term.  But I didn't understand what they recommend.

[ExGingi]

So what I understand from the discussion between ExGingi & yos9694:
If you're planning on keeping term insurance for the long haul, get level term.  It will be more expensive initially, but will be cheaper down the line.
But term life insurance is not the better way to go.  Get something long term.  But I didn't understand what they recommend.

No one will get a recommendation from me here.

I might express opinions, but a recommendation can only come after proper face-to-face fact finding and fully understanding the situation. Beware of anyone handing out recommendation for an individual situation (we are all individuals) without a proper attempt to understand the situation.

As for the first part regarding term insurance, as the name implies it is a limited time solution. If the need for protection has a known end date, it is ideal.

[ckmk47]

No one will get a recommendation from me here.

I might express opinions, but a recommendation can only come after proper face-to-face fact finding and fully understanding the situation. Beware of anyone handing out recommendation for an individual situation (we are all individuals) without a proper attempt to understand the situation.

As for the first part regarding term insurance, as the name implies it is a limited time solution. If the need for protection has a known end date, it is ideal.

I misspoke in using the word 'recommendation'.
What type of insurance should he look into?

[Josef.koney]

This has all been very helpful.
Here's what I got out of it.
- Personally , I wouldn't /shouldn't worry about the potential increase.
- biggest setback would be the prices long term.
- whole life (or gaining capital) would be the solution so u don't need the premiums

Q.
Since I already applied and got my acceptance info, would I have to go through the whole process again to just get a normal convertible term?

[ExGingi]

This has all been very helpful.
Here's what I got out of it.
- Personally , I wouldn't /shouldn't worry about the potential increase.
- biggest setback would be the prices long term.
- whole life (or gaining capital) would be the solution so u don't need the premiums

Q.
Since I already applied and got my acceptance info, would I have to go through the whole process again to just get a normal convertible term?

My biggest issue with your questions is that you seem to be trusting a (semi) anonymous forum more than the agent you are working with. You need to work with someone you can trust, without feeling the need for confirmation/advice on DDF.

[Josef.koney]

My biggest issue with your questions is that you seem to be trusting a (semi) anonymous forum more than the agent you are working with. You need to work with someone you can trust, without feeling the need for confirmation/advice on DDF.

I was told I can trust him, but he didn't go through everything said over here.
I'm not deciding against his advice, I'm doing my diligence before giving him another call.
I have some trust issues. I feel like everyone is doing what's best for them (unless they won't get anything out of it...) So asking over here, I feel like id get the most honest answers.

[ExGingi]

I was told I can trust him, but he didn't go through everything said over here.

If he would, in most cases it would be in vain, as we have gone very technical here. It's almost a sure way to lose a sale and a customer. He's probably giving you a high level answer.

If you want more detail, ask him, but it wouldn't benefit you if you go too deep into the details, you'll be stuck in paralysis of analysis. Doint something that is 80% good, is preferable to not doing something that is 99% good. You've got 3rd party confirmation that the scheduled vs. guaranteed rates on a YRT are not a reason for concern.

Now your question might be if you want a YRT or a level-term product. Ask him to show you both and to outline the advantages and disadvantages of each.

One thing I personally like about YRT is that the premium increases serve as a reminder for the policyholder that it's time to review coverage.

[Josef.koney]

If he would, in most cases it would be in vain, as we have gone very technical here. It's almost a sure way to lose a sale and a customer. He's probably giving you a high level answer.

If you want more detail, ask him, but it wouldn't benefit you if you go too deep into the details, you'll be stuck in paralysis of analysis. Doint something that is 80% good, is preferable to not doing something that is 99% good. You've got 3rd party confirmation that the scheduled vs. guaranteed rates on a YRT are not a reason for concern.

Now your question might be if you want a YRT or a level-term product. Ask him to show you both and to outline the advantages and disadvantages of each.

One thing I personally like about YRT is that the premium increases serve as a reminder for the policyholder that it's time to review coverage.

Ok thanks for your help.

[gubevo18]

Long story short - friend moved states. Policy was not on autopay and all mail notifying about payments when to old address. For some strange reason USPS did not forward the email and the provider never sent any email or other communication. Turns out the policy lapsed a month ago. Is there a way to get the policy reinstated without going through the whole medical process/questionnaire again? This is with prudential

[Yosel]

First, you already mentioned it. But adverse selection probably isn't as big a deal as some think it is for modest rate changes. Life insurance switching costs can be insanely high, I find it hard to believe that someone would give up a 10 year old UL policy because COIs increased 5%.

-1

[Yosel]

Long story short - friend moved states. Policy was not on autopay and all mail notifying about payments when to old address. For some strange reason USPS did not forward the email and the provider never sent any email or other communication. Turns out the policy lapsed a month ago. Is there a way to get the policy reinstated without going through the whole medical process/questionnaire again? This is with prudential

should not be an issue if its only 1 month

[gubevo18]

should not be an issue if its only 1 month

payment was due in Dec. Only received notice now for the first time

[ExGingi]

Long story short - friend moved states. Policy was not on autopay and all mail notifying about payments when to old address. For some strange reason USPS did not forward the email and the provider never sent any email or other communication. Turns out the policy lapsed a month ago. Is there a way to get the policy reinstated without going through the whole medical process/questionnaire again? This is with prudential

BTW, these kinds of lapses are much more common with term insurance, as there's nothing to support it if a premium is skipped. A policy that has cash value generally doesn't lapse so fast, as the existing cash value can often support the policy if payments are missed.

[yos9694]

-1

I appreciate your articulate and instructive contribution to the discussion

[gubevo18]

BTW, these kinds of lapses are much more common with term insurance, as there's nothing to support it if a premium is skipped. A policy that has cash value generally doesn't lapse so fast, as the existing cash value can often support the policy if payments are missed.

thanks for that info. That makes sense..

Do you have any experience getting it reinstated without a medical?