Last week I was having an email conversation with a member of our audience. As part of an email that I sent out (to those lucky enough to be on our subscriber list), I asked a question and I got quite a few responses.
It's a very nice thing to have a list filled with people that are fully engaged with becoming better agents, for those that buy policies from us, and for people that invest in our training products.
One of the great benefits of having all these smart people to talk with is that they often come up with great questions that we can address here and in our podcast. And even better the one we chose to address here, came in from a guy who's not an agent or advisor.
Here's how he describes himself “I’m not a financial advisor, I just appreciate the benefits of permanent life insurance!”
My question involves two related issues. First, if a participating whole life policy is designed with maximum PUAs and only the base premiums are paid for a few years, can the policy holder catch up by dumping a lump sum in order to get back to the maximum PUAs without triggering a MEC? Are there any restrictions on the amount of time that a policy holder can catch up on those PUAs?
My second question involves the discussion surrounding “seasoning” one or more whole life policies with the intent of adding to these policies with, say a lump sum of inherited money as some point in the future. Is this a strategy that you have come across and recommend, or it it just “fluff”?
Those are really great questions and they just so happen to be ones that we've gotten variations of dozens of times in the last several years. And it's not really something we've discussed directly in a post or podcast that either of us could remember.
In episode 129, we answer David's questions and of course add a little commentary along the way. Scroll back up to listen on this page or hop over to iTunes and subscribe to the Insurance Pro Blog Podcast.