A week or so ago an associate called to tell me that Banner Life had a new no lapse guarantee UL that was going to stir things up. Better guarantees! Better prices! Better underwriting!
I had my first opportunity to test it today. I had a lady contact me about a policy that her father had owned on her with Lincoln National. It is a $75,000 policy that he had been paying on since she was 7 years old, 27 years. The annual premium was $600. Her question was simply should she keep it and continue to pay or lapse it and pocket the $17,600 cash value.
Using a 1035 exchange of the cash value into this new Banner product and illustrating it as a single premium policy (no payments ever again, guaranteed), it raised the face amount of the new policy to $125,000 and guaranteed it to age 120. With Lincoln if she continued to pay the $600 a year for $75,000, based on an in force illustration she just got, the policy was only guaranteed to age 82, about the time a person might be needing it.
That’s a great deal no matter how you dissect it. While other companies are running away from guarantees, Banner is doing what Banner has always done best, leading the pack. And while other companies are withholding their best permanent products from options for conversion, Banner is allowing conversion to this product.
Bottom line. I hope to get out several illustrated scenarios in the next few days. This is going to be a product that people should flock to with their failing UL’s.