Understanding PUL Flashcards
What is the goal of PUL?
To provide long-term death benefit protection at the lowest possible cost.
What are the three main benefits of PUL?
Price, flexibility, and guarantees.
In which quadrant of the product matrix do PUL and PSUL reside?
Upper left.
What are the reasons that PUL and PSUL reside where they do in the product matrix?
Affordable premiums for the most death benefit
Potential for cash accumulation
Downside protection
PUL is often the most affordable product in the John Hancock portfolio.
True or false?
True
PUL is a good alternative to _____.
Guaranteed UL
PUL offers competitive premiums in a variety of funding scenarios
at all ages for the top 3 risk classes.
True or false?
True
How would you describe PUL’s cash growth potential?
PUL has EXCELLENT cash value growth potential.
How would you describe PUL’s guarantee?
PUL offers lengthy guarantees, often to life expectancy.
Name four ways in which Vitality can be of benefit?
- Helps secure clients’ financial futures
- Supports pursuit of healthier, longer life
- Can save clients as much as 15% on their premiums
- Allows us to show lower, more competitive premiums
What does LifeTrack do?
LifeTrack automatically generates annual illustrations that provide an up-to-date projection of the policy.
LifeTrack can help minimize the risk of a policy lapsing.
True or false?
True
LifeTrack helps keep a policy on track with the client’s goals.
True or false?
True
Protection UL is most appropriate for clients ages ____ who are looking for comprehensive low-cost death benefit protection.
30+
Does PUL have any advanced market applications?
Protection UL offers a variety of advanced market applications such as providing for estate planning needs.
How often is interest credited to a PUL policy?
Monthly
How can PUL policy owners access value in their policy?
Loan, withdrawals, and surrenders
What is a surrender charge?
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.
Does PUL have a surrender charge?
Yes. It’s detailed in the contract.
If a PUL client makes a withdrawal that results in a Base Face Amount decrease, is there a surrender charge?
Yes. PUL’s Surrender Charge is charged on a pro-rata basis for a withdrawal that results in a Base Face Amount decrease.
Are surrender charges the same or different for all products?
Surrender Charges can be different for each product,
but are detailed in the contract.
What riders are available on PUL?
Healthy Engagement (Vitality)
Disability Payment of Specified Premium
Return of Premium Death Benefit
Long-Term Care
Accelerated Benefit (not on Illustrator)
PUL’s No-Lapse Guarantee is referred to as what?
Death Benefit Protection
What is the NLG based on, and what is the duration?
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.
Describe PUL in one sentence, in a way to includes its three main benefits.
PUL provides death benefit protection, up to and beyond life expectancy, with much lower premiums and great flexibility.
When using JH Illustrator, why should you always begin new cases by clicking “New” in the toolbar (or using the keyboard shortcut Ctrl N)?
It resets Illustrator to the default settings so you don’t design a case
based on settings from a previous case.
When illustrating PUL, how should you solve in order to achieve the highest death benefit for the least amount of premium?
Solve to $1 at lifetime.
For PUL, why does solving to $1 at lifetime provide the most amount of death benefit for the least amount of premium?
By lowering the cash build up.
Compared to solving to $1 at lifetime, what does solving to endow do?
It creates an illustration with higher cash values.
How could you create a more conservative illustration for PUL?
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.
What riders does PSUL have?
Policy Split Option
Disability Payment of Specified Premium
Estate Preservation
Return of Premium Death Benefit
What is PUL’s minimum guaranteed interest rate?
2%
PUL’s current crediting rate is what?
5.05%
On what rate is the NLG based?
Guaranteed minimum rate. If the NLG is calculated off of the current rate,
the NLG lasts even longer.
In one sentence, describe how long Death Benefit Protection
is expected to last.
Death Benefit Protection is expected to last through,
and potentially beyond, life expectancy.
There is a minimum level of premium required to keep
Death Benefit Protection in effect.
True or false?
True
Can the No-Lapse Guarantee terminate early?
If so, what could make that happen?
The no-lapse feature could potentially terminate early due to death benefit option changes, loans, withdrawals, and rider changes.
You can directly compare the PUL No-Lapse Guarantee to the
lifetime guarantees of guaranteed UL.
True or false?
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.
If Death Benefit Protection can not be held up to the lifetime guarantees of guaranteed UL, then what is the value to the client?
The value comes from the combination of all three of PUL’s main benefits: price, flexibility, and lengthy guarantees
If a producer is looking for a relatively conservative PUL illustration,
how can you illustrate it?
Solve to endow at age 100 to have an illustration
that builds up the cash value.
For a producer looking for a relatively conservative illustration, if the policy cannot endow at age 100, what else can you do?
Having an illustration that has an NLG that goes to age 100 might be considered an acceptable alternative.
How much of the death benefit can be accelerated
per month for the LTC rider?
1%, 2% or 4%
Solving to life instead of solving to $1 should have
what kind of effect on the illustration?
It should have the effect of raising cash value, although with PUL
this increase may be minimal.
