Utilizing ROP Term to pay off a mortgage early and save THOUSANDS of dollars

Presented by Jim Linn

Most clients’ largest financial debit is their home and if something were to happen to them they want the mortgage paid off.  We have heard this countless times from clients. If you had the ability to show them a product, that not only covers the mortgage should they die prematurely, but if alive, also provides them a cash benefit to pay off the house early and save THOUSANDS, do you think they would be interested? Who wouldn’t be! 

I am using a custom ROP Term rather than the traditional 20, 25 or 30 year plan.  Why?  First, it is different than what your competition shows them and second, you can customize the time frame based upon your individual clients’ mortgage lengths. 

Option A:

 Your Client:

Male 35 PNT $250K 30 year Mortgage at 4% interest.

Monthly Payment: $1200 (Principal and Interest)

 Product: $250K 28 Year ROP Term

Annual Premium: $787.50

28th Year ROP Amount: $22,050 (787.50 x 28 Years)

28th Year remaining loan balance:  $25,278 

By applying the $22,050 to the existing loan balance that leaves a balance of $3,228.  The client could either pay it off entirely from savings, cash on hand, or simply make 3 more payments. 

Your client just saved themselves $28,800 ($1200 x 24 payments) and covered their mortgage should they die prematurely. 

Option B:

 Male 35 PNT $250K 30 year Mortgage at 4% interest.

Monthly Payment: $1200 (Principal and Interest)

 Product: $250K 30 Year Term

Annual Premium: $307

30 Years x $307= $9210   

Your client can take the cheap option and hand over $9,210 at the end of 30 years or take the SMART option and save THOUSANDS of dollars and pay off their home early.  Which option do you think they will choose? 

Call your Life Marketer at 800-397-9999 for details 

P.S. – Don’t forget about coverage on the spouse as well.  This multiplies the benefits of Option A.

Posted in Life Insurance and tagged , , , , , , , .