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Calling all W/L insurance specialists
05-21-2015, 08:35 AM
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#1
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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Calling all W/L insurance specialists
Hi.
Can someone explain how a non participating whole life insurance policy works?
Does anyone have one of these that would like to comment?
What happens if you want to stop making premium payments and/or deposits.
Thanks.
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05-21-2015, 09:04 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
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 Quote:
Originally Posted by JohnDoe
Hi.
Can someone explain how a non participating whole life insurance policy works?
Does anyone have one of these that would like to comment?
What happens if you want to stop making premium payments and/or deposits.
Thanks.
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If you read the policy it should have non forfeiture provisions, that is the policy can convert to either term insurance or reduced paid up insurance.
There may well be a table with the policy that describes these features.
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05-21-2015, 01:35 PM
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#3
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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So a policy would be drawn up, at which time I would review it and decide if it makes sense for me and it should contain all the very specific details?
These types of policies have a flat premium and predetermined cash values based on payments made since they are non participating?
So for example, I will know now that in year 10 my cash value will be x if I pay x every year and don't make any w/d's or loans?
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05-21-2015, 01:47 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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sorry - I have a par W/L policy with a mutual insurer
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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05-21-2015, 02:46 PM
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#5
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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Quote:
Originally Posted by JohnDoe
So a policy would be drawn up, at which time I would review it and decide if it makes sense for me and it should contain all the very specific details?
These types of policies have a flat premium and predetermined cash values based on payments made since they are non participating?
So for example, I will know now that in year 10 my cash value will be x if I pay x every year and don't make any w/d's or loans?
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I'm surprised to hear of someone marketing a non-par whole life policy but what you say sounds about right... fixed premium, schedule of guaranteed cash surrender values, etc.
I seem to recall that with all policies you have a "10 day free look" where you can recind the policy within the first 10 days of issue and get a refund of your premium. However, the sales materials and illustrations you receive should have a lot of the same info on how the policy operates and your agent should be able to explain how the the policy operates.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-21-2015, 03:56 PM
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#6
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 337
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Just a thought. If you don't have a good understanding of how a whole life policy works, you shouldn't "invest" in it. I think the number of circumstances where a WL policy is actually a good idea is incredibly small.
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05-21-2015, 04:04 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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I'm glad I have mine - kinda like a roth
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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05-21-2015, 05:17 PM
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#8
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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Quote:
Originally Posted by robertf57
Just a thought. If you don't have a good understanding of how a whole life policy works, you shouldn't "invest" in it.
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I agree. That's why I came here because I know there are a lot of knowledgeable folks, to say the least, on this topic.
I am hoping to learn and determine what questions to ask an agent.
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05-21-2015, 05:28 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
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Please, if you have to rely on the agent answering your questions, just steer clear of whole life. It's a ripoff for 99.9% of buyers.
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05-21-2015, 05:53 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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+1 What is your purpose for buying whole life? What do you expect it to do for you? What problems will it solve for you?
Most people only need life insurance for 20-30 years at the most and do not need life insurance for the term of a whole life policy.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-21-2015, 07:20 PM
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#11
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gone traveling
Join Date: Nov 2013
Location: Los Angeles
Posts: 202
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Quote:
Originally Posted by JohnDoe
Hi.
Can someone explain how a non participating whole life insurance policy works?
Does anyone have one of these that would like to comment?
What happens if you want to stop making premium payments and/or deposits.
Thanks.
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Your post is so predictable. Unfortunately some insurance salesman sold this crap. I'd get out and invest in index funds.
33% of policy holders have dumped their policy after 5 years
50% of policy holders have dumped their policy after 10 years
70% of policy holders have dumped their policy after 20 years
77% of policy holders have dumped their policy after 30 years
Guaranteed cash surrender value at 81.1 years old: 3.02% return. Wooooh! 3% if you live to be age 80. What a great deal for the insurance company!
Quote:
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ripoff for 99.9% of buyers
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+2
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