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TIME TO CHANGE YOUR MINDSET?
For the last five years or more we have all focused on lifetime guarantees in permanent sales. Within the last eighteen months, though, those guarantees have become increasingly expensive. In fact, most carriers raised their guaranteed rates 5 to 7% in 2010 or will do so very soon.
Now some carriers want you to approach permanent sales differently! John Hancock's new "Protection UL 2011" provides a guarantee to "life expectancy" only, but with current values that easily carry to age 120 and beyond using current interest and mortality assumptions. This can result in a 10% or more saving against competitors' lifetime guarantees.
Here's an example. Protection UL's "lifetime" premium for a healthy 62 year old male is $15,972 annually. It guarantees to age 86 (expectancy) but lasts forever at this price assuming current rates and interest. In fact it shows nearly $190,000 of cash at age 86.
In contrast, Lincoln's "Guarantee UL" provides a true lifetime guarantee for $16,998 annually, roughly a 6% higher premium than Hancock's approach.
We look at these approaches as not necessarily the same. With Hancock you're buying "Term to Age 86" with a probable cash kicker that can extend coverage or return premium. With Lincoln you're buying "Term for Life" and you pay a premium to get the full life guarantee.
The "right" choice comes down to you and your clients' tolerance for risk and also to the question of whether the insurance need really does still exist if you've lived to expectancy and beyond. This is a good problem to have, especially since The Rucker Company offers the best of both product approaches. We'll be happy to provide quotations on request. | 
