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John Hancock Insurance > Understanding PUL > Flashcards

Understanding PUL Flashcards

1
Q

What is the goal of PUL?

A

To provide long-term death benefit protection at the lowest possible cost.

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2
Q

What are the three main benefits of PUL?

A

Price, flexibility, and guarantees.

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3
Q

In which quadrant of the product matrix do PUL and PSUL reside?

A

Upper left.

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4
Q

What are the reasons that PUL and PSUL reside where they do in the product matrix?

A

Affordable premiums for the most death benefit

Potential for cash accumulation

Downside protection

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5
Q

PUL is often the most affordable product in the John Hancock portfolio.

True or false?

A

True

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6
Q

PUL is a good alternative to _____.

A

Guaranteed UL

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7
Q

PUL offers competitive premiums in a variety of funding scenarios

at all ages for the top 3 risk classes.

True or false?

A

True

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8
Q

How would you describe PUL’s cash growth potential?

A

PUL has EXCELLENT cash value growth potential.

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9
Q

How would you describe PUL’s guarantee?

A

PUL offers lengthy guarantees, often to life expectancy.

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10
Q

Name four ways in which Vitality can be of benefit?

A
  1. Helps secure clients’ financial futures
  2. Supports pursuit of healthier, longer life
  3. Can save clients as much as 15% on their premiums
  4. Allows us to show lower, more competitive premiums
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11
Q

What does LifeTrack do?

A

LifeTrack automatically generates annual illustrations that provide an up-to-date projection of the policy.

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12
Q

LifeTrack can help minimize the risk of a policy lapsing.

True or false?

A

True

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13
Q

LifeTrack helps keep a policy on track with the client’s goals.

True or false?

A

True

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14
Q

Protection UL is most appropriate for clients ages ____ who are looking for comprehensive low-cost death benefit protection.

A

30+

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15
Q

Does PUL have any advanced market applications?

A

Protection UL offers a variety of advanced market applications such as providing for estate planning needs.

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16
Q

How often is interest credited to a PUL policy?

A

Monthly

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17
Q

How can PUL policy owners access value in their policy?

A

Loan, withdrawals, and surrenders

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18
Q

What is a surrender charge?

A

It’s a percentage charge that decreases over a period of 10 years from the date of issue, and is deducted in the event of full surrender.

19
Q

Does PUL have a surrender charge?

A

Yes. It’s detailed in the contract.

20
Q

If a PUL client makes a withdrawal that results in a Base Face Amount decrease, is there a surrender charge?

A

Yes. PUL’s Surrender Charge is charged on a pro-rata basis for a withdrawal that results in a Base Face Amount decrease.

21
Q

Are surrender charges the same or different for all products?

A

Surrender Charges can be different for each product,

but are detailed in the contract.

22
Q

What riders are available on PUL?

A

Healthy Engagement (Vitality)

Disability Payment of Specified Premium

Return of Premium Death Benefit

Long-Term Care

Accelerated Benefit (not on Illustrator)

23
Q

PUL’s No-Lapse Guarantee is referred to as what?

A

Death Benefit Protection

24
Q

What is the NLG based on, and what is the duration?

A

The no-lapse guarantee duration will vary based upon issue age, risk class, gender and chosen funding level.

Typically, the no-lapse guarantee duration is usually at or around the insured’s life expectancy.

25
Q

Describe PUL in one sentence, in a way to includes its three main benefits.

A

PUL provides death benefit protection, up to and beyond life expectancy, with much lower premiums and great flexibility.

26
Q

When using JH Illustrator, why should you always begin new cases by clicking “New” in the toolbar (or using the keyboard shortcut Ctrl N)?

A

It resets Illustrator to the default settings so you don’t design a case

based on settings from a previous case.

27
Q

When illustrating PUL, how should you solve in order to achieve the highest death benefit for the least amount of premium?

A

Solve to $1 at lifetime.

28
Q

For PUL, why does solving to $1 at lifetime provide the most amount of death benefit for the least amount of premium?

A

By lowering the cash build up.

29
Q

Compared to solving to $1 at lifetime, what does solving to endow do?

A

It creates an illustration with higher cash values.

30
Q

How could you create a more conservative illustration for PUL?

A

Solving to endow at lifetime will illustrate with a higher cash value than solving to $1.

Solving to endow at age 100 will illustrate with higher cash value than endow at lifetime.

31
Q

What riders does PSUL have?

A

Policy Split Option

Disability Payment of Specified Premium

Estate Preservation

Return of Premium Death Benefit

32
Q

What is PUL’s minimum guaranteed interest rate?

A

2%

33
Q

PUL’s current crediting rate is what?

A

5.05%

34
Q

On what rate is the NLG based?

A

Guaranteed minimum rate. If the NLG is calculated off of the current rate,

the NLG lasts even longer.

35
Q

In one sentence, describe how long Death Benefit Protection

is expected to last.

A

Death Benefit Protection is expected to last through,

and potentially beyond, life expectancy.

36
Q

There is a minimum level of premium required to keep

Death Benefit Protection in effect.

True or false?

A

True

37
Q

Can the No-Lapse Guarantee terminate early?

If so, what could make that happen?

A

The no-lapse feature could potentially terminate early due to death benefit option changes, loans, withdrawals, and rider changes.

38
Q

You can directly compare the PUL No-Lapse Guarantee to the

lifetime guarantees of guaranteed UL.

True or false?

A

False

PUL’s guarantee can NOT be held up in a head-to-head comparison with a guaranteed UL product that offers guarantees to lifetime.

39
Q

If Death Benefit Protection can not be held up to the lifetime guarantees of guaranteed UL, then what is the value to the client?

A

The value comes from the combination of all three of PUL’s main benefits: price, flexibility, and lengthy guarantees

40
Q

If a producer is looking for a relatively conservative PUL illustration,

how can you illustrate it?

A

Solve to endow at age 100 to have an illustration

that builds up the cash value.

41
Q

For a producer looking for a relatively conservative illustration, if the policy cannot endow at age 100, what else can you do?

A

Having an illustration that has an NLG that goes to age 100 might be considered an acceptable alternative.

42
Q

How much of the death benefit can be accelerated

per month for the LTC rider?

A

1%, 2% or 4%

43
Q

Solving to life instead of solving to $1 should have

what kind of effect on the illustration?

A

It should have the effect of raising cash value, although with PUL

this increase may be minimal.

John Hancock Insurance (10 decks)

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