Model a permanent whole life need, pull a carrier-generated illustration, and catch financial underwriting limits before the case reaches the carrier.
▶ Watch: BackNine in 5: Whole Life (5 min)
Whole life is permanent coverage with a contractual death benefit and guaranteed cash value, as long as the policy stays in force. This walkthrough shows how to design it, pull the carrier’s actual illustration, and catch placement problems before underwriting does.
When whole life fits
The need doesn’t expire, and the client wants guarantees and is willing to fund them. Common examples include final expenses, legacy, estate liquidity, lifetime spouse protection, and business planning.
How it works
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Death benefit and cash value are contractual if the policy stays in force.
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Dividends may be paid on participating policies but are not guaranteed.
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Cash value generally grows tax-deferred.
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Withdrawals are generally income-tax-free up to the cost basis.
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Loans on a non-MEC policy are generally not taxable while the policy stays in force. Loans and withdrawals reduce cash value and death benefit, and increase lapse risk.
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If the policy becomes a MEC (modified endowment contract), withdrawals and loans are taxed gain-first, and taxable gains before age 59½ may face an extra 10% tax.
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The death benefit is generally income-tax-free to beneficiaries.
Tax treatment depends on how the policy is structured. Clients should confirm with their tax professional.
What you need before you start
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Client basics, build, nicotine, and health
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Coverage amount
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How long they want to pay
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How often they want to pay
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Accurate income and net worth
The click path
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Enter the face amount.
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Choose the pay period: paid-up at 100, or a shorter schedule like 20-pay, 15-pay, 10-pay, or single pay where available.
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Choose the payment mode. Monthly is what most clients actually pay.
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Compare carriers, then open the carrier-generated illustration from the carrier screen.
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Continue into the application.
What to get right on the call Show the real illustration. These are the carrier’s own compliant illustrations, not mockups, with guaranteed and non-guaranteed values where the product has them.
Treat financial underwriting flags as design feedback. Permanent cases get a financial review that term cases often skip. In the walkthrough, the carrier caps premium at 20% of income, so a $100,000 income allows a maximum annual premium of $20,000, and the design was over that limit.
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If the income or assets were entered wrong, correct them.
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If they’re accurate, reduce the premium or the face amount.
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Never raise income just to get past the screen. The goal is a case that can actually be placed.
Set expectations about split applications. Some carriers let you finish the agent portion in Quote & Apply, then have the client complete their part on the carrier’s website. Tell the client before you hang up so they know to watch for the text or call.
After you submit
The case appears in BOSS. Case management follows up on requirements with the carrier.
Ready to run one? Click Launch Quote & Apply at the top of BOSS. You don’t need whole life underwriting guidelines memorized. Send us what the client is protecting, how long the need lasts, and what they can comfortably fund, and we’ll help design it.