Adding Life Insurance as Mortgage Protection

Kyle Henry

Affordable, permanent protection for the family. That is what American National’s GUL brochure says about this product – and this product really is in a class of its own.

When I started selling ANICO products, I will admit I did not recognize the value of the GUL policy. I remember quoting term for clients on “quick quote” and the GUL is always included as the more expensive option below the term quotes. I did not see the value because I was thinking “Okay it’s like an IUL but without the cash value” … right? Wrong.

When you look into this product, when you learn this product, you will see an entire new opportunity come to light in front of your eyes.

While GUL is more expensive than term life for example, it is by far one of the least expensive forms of permanent life insurance.

Right in between term and IUL, or Whole Life. You don’t have the liquidity as you would with Whole Life or IUL – but you do have a product with a guaranteed cash-out feature. Typically, I will sell the GUL to my clients as mortgage protection.

When a policy holder reaches their 15 th , 20th or 25th policy year anniversary they have a 60-day period to surrender the policy and receive a guaranteed cash-out payment called ROP or Return of Premium. A lot of us are familiar with this feature from the old term products back in the day – you paid more monthly to have the option to get it all back in the end.

This works perfectly for protecting against risk on mortgages.

I’ll give you an example.


Joe is 42 years old; non-smoker and his agent quotes him on a $350,000 GUL to age 95. His annual premium is $2,629.88.
 Prior to receiving his quote, Joe took out an initial mortgage of $200,000 at 4.0% when he was age 37.

 GUL has the cash-out options at the 15th , 20th and 25th year as I previously stated … it is important to know that if you take the cash-out at the 15 th year – you will not receive your entire premiums paid in. if you wait until the 20th or 25th policy year anniversary however, you will get full ROP. Back to Joe.
His guaranteed cash-out at year 15? … $25,641.
Cash-out at year 20 – $52,598.
Cash-out at year 25 – $65,747.

We know that Joe was quoted on his GUL at age 42, which means 20 years down the road will have him right before Medicare at age 62.
By age 62 he’s paid a good chunk of that mortgage down, right?
 Correct. Joe owes $51,064 on his mortgage at age 62.
What was the cash-out at year 20? $52,598.

Joe was able to protect himself for 20 years, then surrender his policy to receive a guaranteed cash-out and pay off the rest of his mortgage EARLY. Two birds one stone. It is that simple! Miss out on the Webinar

Using American National GUL to Sell Mortgage Protection
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Any more information or questions contact Kyle Henry at the home office. (772) 546 – 2299

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