Re: Re: Re: Re: Re: Re: whole life

We are not affiliated with any insurance company.

[Home] [Insurance Quotes] [Follow Ups] [Post Followup]
[100 Insurers Message Board] [FAQ]

Posted by Rock (65.33.98.177) on August 17, 2001 at 20:49:34:

In Reply to: Re: Re: Re: Re: Re: whole life posted by hindi on August 17, 2001 at 11:21:41:

: : excuse me for interrupting this lovefest -- with respect to WL -- you can withdraw to basis as well.

John, does it really bother you that two people can disagree
and still respect each other's viewpoint?

: No you cannot. Whole life cash value is an asset of the company. They own it, technically. The only way to get the money is through a loan. With a UL, the company is the holder of YOUR money just like a bank is the holder of your savings or checking account money. You can always withdraw YOUR money (and to basis with UL...above basis is a taxable event, which is why you want to borrow above basis, and also why the loan rate is extremely important.

Hindi, I believe many WL policies do in fact let you withdraw
non-guaranteed cash value. From what I understand, it was
competition with UL policies which forced this change.
See the "SLIRP" link below for Ney York Life's take on this.

Similarly, many WL policies can now be "overfunded",
in a manner very similar to overfunding a UL policy.
This is what the Option to Purchase (OPP) rider allows
on my policy. I can purchase up to about $2400 more paid-up
insurance per year if I wanted to (and had that much money).

UL allows underfunding" as well, and this is an area where
I don't think there is a corallary in a WL policy. One could
purchase less insurance than actually desired and depend
on overfunding (OPP) to catch up, but this isn't really the same thing.

Note that I am not saying WL is now as flexible as UL. It is not.
However, it has gained a bit of flexibility over what
was available maybe 20 years ago.

: AND the biggest advantage WL has over UL -- IT'S GUARANTEED -- WHEN THE DIVIDEND PAYS -- NOTHING NOT GOD HIMSELF CAN TAKE IT AWAY -- not so with UL -- CV is ALWAYS at risk.

: Sorry, John, this is also not true. Cash value is part of the general assets of the company either way -- WL or UL. Neither is safer than the other...but with UL you have more liquidity. Whatever has already been earned, has been earned, and cannot be taken away. In the future, you may never get another dime of excess interest, but you could never get another dividend either. Same! SAFETY is CONTROL...more than the SIZE of the carrier! hindi

I am not quite sure what John meant there either.
If God wants my dividend, I won't argue.

-- Rich
--- http://rocq.home.att.net

NYL SLIRP

Follow Ups:

Post a Followup

Name:
E-Mail:

Subject: Re: Re: Re: Re: Re: Re: Re: whole life

Comments:
: : : excuse me for interrupting this lovefest -- with respect to WL -- you can withdraw to basis as well. : John, does it really bother you that two people can disagree : and still respect each other's viewpoint? : : No you cannot. Whole life cash value is an asset of the company. They own it, technically. The only way to get the money is through a loan. With a UL, the company is the holder of YOUR money just like a bank is the holder of your savings or checking account money. You can always withdraw YOUR money (and to basis with UL...above basis is a taxable event, which is why you want to borrow above basis, and also why the loan rate is extremely important. : Hindi, I believe many WL policies do in fact let you withdraw : non-guaranteed cash value. From what I understand, it was : competition with UL policies which forced this change. : See the "SLIRP" link below for Ney York Life's take on this. : Similarly, many WL policies can now be "overfunded", : in a manner very similar to overfunding a UL policy. : This is what the Option to Purchase (OPP) rider allows : on my policy. I can purchase up to about $2400 more paid-up : insurance per year if I wanted to (and had that much money). : UL allows underfunding" as well, and this is an area where : I don't think there is a corallary in a WL policy. One could : purchase less insurance than actually desired and depend : on overfunding (OPP) to catch up, but this isn't really the same thing. : Note that I am not saying WL is now as flexible as UL. It is not. : However, it has gained a bit of flexibility over what : was available maybe 20 years ago. : : AND the biggest advantage WL has over UL -- IT'S GUARANTEED -- WHEN THE DIVIDEND PAYS -- NOTHING NOT GOD HIMSELF CAN TAKE IT AWAY -- not so with UL -- CV is ALWAYS at risk. : : Sorry, John, this is also not true. Cash value is part of the general assets of the company either way -- WL or UL. Neither is safer than the other...but with UL you have more liquidity. Whatever has already been earned, has been earned, and cannot be taken away. In the future, you may never get another dime of excess interest, but you could never get another dividend either. Same! SAFETY is CONTROL...more than the SIZE of the carrier! hindi : I am not quite sure what John meant there either. : If God wants my dividend, I won't argue. <grin> : -- Rich : --- http://rocq.home.att.net

Please enter the characters in the image above.

[Home] [Insurance Quotes] [Follow Ups] [ Post Followup] [100 Insurers Message Board] [FAQ]