When AXA Equitable made it official last week that they were going to discontinue their no lapse guarantee universal life products, I suggested that what we were gazing at was the tip of the iceberg.
There is some indication now that Phoenix Life will be announcing changes to its’ external guarantee UL products in the near future. I guess there isn’t any risk of my seeming redundant since I clearly am exactly that, so here I go again, redundiferous to the bitter end.
ANYONE WHO HAS PERMANENT PRODUCTS SUCH AS WHOLE LIFE OR TRADITIONAL UNIVERSAL LIFE, OR IS CONSIDERING THE ADDITION OF PERMANENT LIFE INSURANCE TO THEIR PORTFOLIO, NEEDS TO GET OFF THEIR REAR, or get used to the idea that you let one of the best deals in life insurance walk right past you and disappear.
I’m not absolutely sure that every company will discontinue these reserve heavy products, but I am sure that if they don’t dump it, they will raise the price. They are going to figure out some way to get the monkey off of their back to provide the large reserves these policies require and the only other back around is those who purchase life insurance.
This will be, not too far down the road, the life insurance equivalent of wishing you had bought Lincoln National stock at $5. Saving big money is just liking making big money.
Bottom line. Again, if you currently have permanent insurance and haven’t compared against the best of the universal life no lapse guarantee products, you are foolish not to before the opportunity is gone. If you have been considering adding permanent life insurance to the term insurance you have, consider it now before it has a much higher cost.