Life Insurance

Back to the Future

Presented by Gary Peterson   Following is a concept that can generate life sales into the future.   When you sell a term plan to your clients, prepare them for the next sale by discussing their needs for permanent insurance.  One of our carriers offers Return of Premium on their Universal Life product in addition to a Chronic Illness rider.  Another carrier has the option to make the change from a Universal Life to an Index Universal Life.   The approach would be:
  • Sell the term
  • Prepare clients for conversion to a Universal Life in a few years
  • In 20 years, get refund of premium or exercise the Chronic Illness rider for Living Benefits (if desired)
OR
  • Change the Universal Life to an Index Universal Life to build potential supplemental retirement funds
Call me at 800-397-9999 for more details on these potential solutions for your clients.  Remember, don’t just sell for today!  
Life Insurance

What’s behind door number 3? A life insurance conversion…

Presented by Brian Leising   Are you unhappy with the conversion options available to your clients? Not able to sell term and permanent coverage to every client every time?  Here’s another option to consider: Return of Premium (ROP) term.  How can ROP help?  At the end of the term the client receives cash, walks away and that’s the end of it, right?  Most carriers offering ROP actually give the clients three options.  The obvious option is to take the cash and run.  The client could also apply the cash to convert to whatever permanent plan the carrier makes available at the time, thereby reducing the required premiums to maintain the same face amount.  What people tend to forget is the third option.  The client can choose to use the ROP funds to purchase a reduced paid-up policy.  The policy is paid-up…guaranteed. Here’s an example from one company using a preferred non-smoking male age 35 for $500,000: The annual premium is $110.  After 30 years the person could choose a $64,322 paid-up policy.  He could alternatively purchase a traditional term for $530/year and 30-pay a $64,322 no-lapse UL for only $544/year.  Two separate policies actually represent a savings of $26 in this scenario.  But is your client going to do that?  If they will, that’s great, you just used the ROP concept to sell a permanent plan in addition to the term you were going to sell anyway.  Your client is closer to having the proper coverage for their needs and you made more money.  Cha-ching!  But how many of your clients are actually going to do that?  They may not see the need for permanent coverage.  When money gets tight, which policy is going to go?  What if they miss a premium payment on the no-cash no-lapse guarantee UL?  There are potential leaks in the two-policy plan.  People don’t always do what’s best for them, but what is perceived to be easiest.  The ROP option gives the client only one policy to deal with and an absolute guarantee their permanent plan will indeed be permanent.  They know from day one how much permanent coverage they will have and what the premium will be – zero.  Show your clients what’s behind door #3.  You can’t lose.
Disability

ROP Rider for a Younger Client

Presented by Donna Ries Here’s an idea to consider for a younger client: Protecting an income should be a client’s top priority. One option that may be advantageous for a younger client is the return of premium rider on a disability insurance policy. For example, a 27 year old female administrative office worker making $30,000 that had a $1,000 benefit amount to age 67 with a 90 day elimination period would pay about $28 per month in premium. Of that premium, the return of premium rider would cost around $7 per month. If no claims were made, at age 67, a full return of premium would be received. That means over 40 years the client would have paid an extra $3,360 in premium to receive all premiums totaling over $13,000 back at age 67. That’s an attractive return to consider. Return of premium features vary by carrier. Contact your DI marketer for more information to customize your case.