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Product Win: SUL





Tony Neiswander
Case Design Specialist

Every month we plan to highlight a product or products that have helped your fellow agents win a case. This month I wanted to cover the Pacific Life Indexed Estate Preserver 2 that has helped an agent win multiple cases over the past month.

When it comes to survivorship policies, they tend to be sold to the older ages that are looking for a guaranteed death benefit to pass on to their heirs. This is exactly the situation we were in here. They wanted to 10 pay a policy with a face of $500,000. They were heavily invested in the idea of guarantees and preferred to have one to age 100. I ran this scenario through our multitude of guarantee options in an attempt to find the lowest premium. I found what would turn out to be the lowest cost options in Prudential and Nationwide. Both of their policies offered the guarantee to age 100 they were looking for, but had no cash build up and no option to continue if they lived past the lapse. I decided to use the Pacific Life Indexed Estate Preserver 2 and see how it performed. Below are the results:

Sex Age Class State Product Initial
Death Benefit
Initial
Annual Premium
Male 66 N IN Pacific Life Indexed Estate
Preserver 2
500,000 14,298
Female 64 N
Male 66 N IN PruLife® SUL Protector 500,000 16,440
Female 64 N
Male 66 N IN Nationwide YourLife
NLG SUL II
500,000 16,572
Female 64 N

As you can see Pac Life product ran away with the premium. It was $2,142 cheaper than the closest guarantee product. That would save the client over $20,000 over the 10 payment years. As far as guarantees went the Pac Life would still be guaranteed out to age 93 compared to the 100 of the others. 93 would still be much past life expectancy. At the non-guaranteed rate, in this case 6.51%, the policy projects to carry for life. This type of policy with a flexible premium would allow the client to add more money if it began to falter as well. The guarantee products wouldn’t work like that. Within the illustration they also show a middle of the road alternate rate, in this case 3.95%, and it carried to almost age 100. On top of all this the clients would also be given access to a growing cash value. This aspect adds some extra flexibility in case an emergency happens that causes the clients to need access to quick cash. They would get nothing like this with a guaranteed product.

In short, this product seems to combat typical guarantee products very well. It offers much much more for a lower premium, all while still giving a guarantee out well past life expectancy. Let us show you how this product would look on your clients today.

TONY NEISWANDER, MBA  |  CASE DESIGN SPECIALIST   636.695.2842  TNEISWANDER@FIRSTHEARTLAND.COM

 

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