Assurity's Accidental Death Plus is pretty awesome!

[rousemark]

None of that matters. Term coverage isn't meant for those who lapse/don't die.

It's meant for those who need it.

Accidental Death coverage isn't meant for those who lapse/don't die of natural causes. .

It's meant for those who need it.

 

[scagnt83]

Try to justify to the grieving widow with three kids of the 26 healthy young man killed in a hunting accident what she is only getting $25K from the WL plan instead of the $250K she would have received if you had sold him an accidental death policy. ... That what if game plays out in many ways.

Correct product recommendations fix that issue.

A 26 year old with children should have been sold a $500k Term policy. Not a $25k FE policy.

The widow should sue the agent if they recommended a $25k FE policy to a 26 year old father who was insurable.

 

[scagnt83]

Oh, BTW, you can't sell him a term policy becasue they pay out even in less cases your estimate of the AD&D policy.
"How many term life insurance policies pay out a death benefit?

A Penn State study completed in 1993 said that less than 2% of all term life policies paid a death claim, and that less than 10% of all term policies stayed in force during the entire initial term period.

The study determined that only 1% of all term insurance resulted in death claims. That means on average only 1% of all term policies will pay death benefits.

Why? Because only 1% of all term policy owners keep their coverage beyond 15 to 20 years. (Penn State University, 1993 Study)"

Most term doesnt pay out because most people dont die an early death... and its designed to be temporary coverage to provide for an early death.

And in your example of the 26yo father killed by a hunting accident... Term at the same premium would have paid much more than a FE policy.

Selling a FE policy to a young father who is insurable is borderline malpractice.

Try telling the grieving wife that he could have had 10x the amount had you made the proper recommended of a term policy.

And if he needed an FE policy in old age, he could convert the term to it.

 

[scagnt83]

Accidental Death coverage isn't meant for those who lapse/don't die of natural causes. .

It's meant for those who need it.

You mean the 6% of all US deaths that are accidents need it.... unless they had adequate coverage from a real life policy.

 

[scagnt83]

Oh, BTW, you can't sell him a term policy becasue they pay out even in less cases your estimate of the AD&D policy.
"How many term life insurance policies pay out a death benefit?

You dont understand the numbers correctly.

AD&D only pays a benefit in 6% of all deaths.

Term Life pays a benefit in 100% of all deaths.... not just the 6% that are accidents.

 

[myinsurebiz]

Correct product recommendations fix that issue.

A 26 year old with children should have been sold a $500k Term policy. Not a $25k FE policy.

The widow should sue the agent if they recommended a $25k FE policy to a 26 year old father who was insurable.

I believe he needs a $25k WL to be certain that he can get buried / cremated.

Then, package a $250k Term Rider on top of that.

Assurity has that ability with their non-med products.

 

[scagnt83]

I believe he needs a $25k WL to be certain that he can get buried / cremated.

Then, package a $250k Term Rider on top of that.

Assurity has that ability with their non-med products.

I do like that setup.

I recently put a case through Ameritas and had to use a small WL with Term Rider for UW reasons, they go 3 extra tables on WL vs. Term.

The small WL gets the client thinking about WL and their long term future with insurance. Easy to add more on in subsequent years, especially if they qualify for GIO Rider.

 

[rousemark]

You dont understand the numbers correctly.

AD&D only pays a benefit in 6% of all deaths.

Term Life pays a benefit in 100% of all deaths.... not just the 6% that are accidents.

As is always the case, stats are what you (we) make them.. Due to people outliving their term, it is said only 1% of term policies pay. However, if you want to word that as to how many in-force term policies pay upon the death of the insured, that would probably be 99%+. (Have to allow for contested claims)..

My personal claims rate on the AD policies I have written in the last 45 years is s 100% or would that be 0%? .. How would you calculate 100% of 0 as I have never written one. In my early debit days we had an AD&D plan that cost 10 cents per week. Did write some of them. I also don't usually write the AD rider on life plans but, if someone wants it then I will sell it to them. However, even though I don't write it or think it a good buy, I don't criticize others and accuse them of selling junk just becasue they see things differently than I.

 

[shooter]

Numbers never lie.
But liars use numbers.
Think about it,
The truth is out there.

 

[WinoBlues]

Selling a FE policy to a young father who is insurable is borderline malpractice.

I have run across this so many times. And not just fluffy felons but healthy, <45, young adults.