Here is a copy of the email I was trying to send you but Yahoo routed to your spam folder:

Hello Phong,

I have attached an illustration of a United of Omaha $40,000 Indexed Universal Life Express policy. This seems to me to be the best solution for your needs, given your budget. 

Please be aware that I do research for my clients and whenever a product proves to be the best of class, I seek a contract with that company so I can offer it to my future clients. I work with many insurance carriers and would happily contract with Globe Life if it offered leading products. So, having heard from you that Globe Life offered you a better quote, , I also did research.

This morning I called Globe Life to see if they offered equivalent whole life policies to Mutual of Omaha and I spoke with an agent named Marques. Call Globe Life at 1-800-831-1200 ext. 4638 to reach Marques to verify this, or speak to any other Globe Life agent and they will give you the same information. I asked Marques if Globe Life offered an Indexed Universal Life plan. He said they do not. But what Marques said is important to consider:

1. Marques pointed out that Indexed Universal Life policies are not technically whole life insurance policies.
2. He acknowledged that the monthly premiums of Mutual of Omaha are lower than those of Globe Life’s whole life policies.
3. I asked Marques how much Globe Life charges for a $50,000 whole life policy. He quoted me $393.83/month.
4. I asked him how much for a $40,000 whole life policy. He said Globe Life only offered $50,000 policies or $30,000 policies.
5. I asked him how much for a $30,000 whole life policy. He quoted me $237.50/month.

Therefore, the Globe Life agent you spoke with offered you a much lower price than what the agent I spoke with quoted. Digging further, I concluded that the Globe Life agent you spoke with must not have been referring to either an IUL or a whole life policy, but to a renewable term life policy. I have offeres some information about comparable term life policies below, just in case that is what you want.

Please be aware that Globe Life is known for offering what they call “whole life” policies that are actually guaranteed renewable term policies. Unfortunately, while these types of policies can last a lifetime, they do not have level premiums. This means the original low monthly quoted price will change to a higher premium amount when the term renews. Globe Life is, in fact, coming under scrutiny because of its representation of renewable term life policies as whole life policies. Here is a news report that came out just this week regarding it … .

All this said, the agent I spoke to, Marques, did offer a valid criticism of IUL policies, such as what I am recommending to you. He pointed out that they are not technically whole life policies. This is true and it is important that I should disclose this to you. Hypothetically, if the stock market crashes year after year for many years in a row, an IUL policy may lapse. Historically, this has never happened, but theoretically it could happen. Historically, the S&P 500 index has increased by over 10% annually on average over the past 100 years.

But what Marques said to me was misleading. Marques, characterized IUL policies as primarily an investment product, rather than whole life policy. It’s true that many people do view IUL policies as investments but they still also function as whole life pollicies. An IUL is a good way to save and earn money for many investors. That much is true. In fact, many investors deliberately pay extra premiums in the first five years so they can defer their taxes and earn more money. But if your goal is to protect your family when you die, an IUL also offers the best possible death benefits for the monthly premium price. And I know that is your first objective. And the truth is that whether your goal is to earn money and save on taxes, or to distribute more money to your family when you die, the IUL is the best type of product in either case. 

Marques was quick to suggest that, as an investment product, an IUL could result in financial loss. This was false. Marques seems to be unaware that IUL policies also offer protection against loss, using a provision called a “floor.” United of Omaha’s IUL Express policy is set to a 0% floor. A 0% floor means that if the stock market drops for a calculation period, that there are no new earnings/increases for your policy. You earn 0% that year. The policy does not lose value. It simply doesn’t gain value that year. 

As compared to investing in the stock market, where stocks can drop and losses can result, an IUL with a floor can go up with the stock market but not down. This is built into the IUL Express I am recommending. Not all IULs are the same. In my opinion, Mutual of Omaha’s is the best. I mentioned to you when we spoke that I would check some of their other whole life products that might require a physical. I discovered that at age 68, you would have to buy a $100,000 policy or higher to qualify, so that won’t apply. The IUL Express product that I am recommending uses simplified underwriting. No physical exam will be required. So long as your medical history shows you are in good health, your approval should be instant.

All this said, perhaps you are still interested in a lower price. Maybe a Term Life product is of interest to you. In general, term life policies make better sense for younger people. They are very inexpensive. The problem is that they only build value if a return of premium rider is added. They also terminate at the end of the term, so if you die after the term expires, there is no death benefit. All the premiums paid in have no further value. Globe Life’s “renewable term ‘whole life”” policies guarantee you can keep renewing them at the end of each term. So, for instance, if you purchase a policy at age 68 and it renews every five years, then at age 73, the premium will increase. You can either pay the same premium with a lower face amount, or a higher premium with the same face amount. And by offering the renewal guarantee for the rest of your life, they call it “whole life.” But Globe Life also offers true whole life products that do not increase premiums or change the benefit amount. Here is a comparison of prices:

United of Omaha IULE
$50,000 policy – $184.48/month
$40,000 policy – $151.86/month
$30,000 policy – $113.89/month

Globe Life Whole Life
$50,000 policy – $393.83/month
$30,000 policy – $237.50/month

For term life policies, I would not choose either Globe Life or Mutual of Omaha, but you should be aware of how term life policies work. The longer the term, the higher the cost. So, here are some quotes for a 68 year old male living in California in excellent health:

$50,000 policy, 10 year term – $89.93/month (American Amicable)
$50,000 policy, 15 year term – $83.49/month (Americo)
$50,000 policy, 20 year term – $116.96 (Americo)

As you can see, these term quotes are well below what Globe Life quoted you. If you were to choose a term life policy, instead of an IUL Express, the 20 year term with Americo would be the best choice. That would insure you up to age 88. Unfortunately, if you died at age 89 or higher, you would have no death benefit for Hanh. Now while no carriers offer life insurance for those age 89, the one advantage Globe Life has with its renewable term whole life policy, is that they would at least offer you a guaranteed renewable policy at that age. Just be aware that the price would far exceed what they are presently quoting. You could call the number above and ask.

I do not recommend you choose a term policy. If your goal is to have the lowest possible premium and to have an insurance policy that has the greatest possible face value and have the assurance that so long as you pay your premiums the policy will stay in force for the rest of your life, even if you live above 100 years old, the best choice is the United of Omaha IUL Express. I wish you a long and prospersous life. It may not be what is foremost on your mind at this time, but the fact that an IUL Express is likely to increase in value and you can borrow from that value as it grows, may also help you to more quickly achieve a fully paid up status of your policy so that the policy can pay for its own premiums when you are older. I make a living searching for the best products for my clients to meet their goals. I am happy to help you with this. Let me know when you have had time to examine this information.


James Carvin

Attachment: Illustration40K