Degree of Honor??

[Biggin]

Sometimes makes a replacement make more sense. A client could spend close to the same premium and have a net higher death benefit. With a portion non contestable.

The hard part is making a final expense client understand that.

 

[jacobtn]

The hard part is making a final expense client understand that.

Actually it's very easy unless you're over explaining everything Those deals are typically very easy.

 

[WinoBlues]

The hard part is making a final expense client understand that.

Sometimes you just have to tell them what you're going to do and where to sign.

Other then surrender values, non forfeiture options are often overlooked by agents.

 

[Biggin]

Sometimes you just have to tell them what you're going to do and where to sign.

Other then surrender values, non forfeiture options are often overlooked by agents.

ORRRR maybe you have higher class trailers in your corn fields. If you tell them the option of getting CASH out of their policy vs. rpu ( even though rpu is the best option) the FE crowd in my part of MI will ALWAYS choose cashmoney. "what????? They is MONEY in 'nere???!?!?".

Not saying this happens every time but more times than not when I explain the non-forfeiture options they give me the same look I get from my dog when I put his food in the water bowl. I get that same look from some agents when I try to explain it to them. FE clients didn't get to be 70 yrs old with no way to pay for their funeral because they are so sharp and fiscally astute.

 

[WinoBlues]

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ORRRR maybe you have higher class trailers in your corn fields. If you tell them the option of getting CASH out of their policy vs. rpu ( even though rpu is the best option) the FE crowd in my part of MI will ALWAYS choose cashmoney. "what????? They is MONEY in 'nere???!?!?".

Not saying this happens every time but more times than not when I explain the non-forfeiture options they give me the same look I get from my dog when I put his food in the water bowl. I get that same look from some agents when I try to explain it to them. FE clients didn't get to be 70 yrs old with no way to pay for their funeral because they are so sharp and fiscally astute.

Yeah, can not argue that. Sometimes it is hard to get them to wait for the new one to get issued before surrendering the old one.

 

[nfl72]

I know all about replacement and cashout etc but can someone explain the RPU thought process? or just maybe where I could read aobut it.

ty

 

[Biggin]

I know all about replacement and cashout etc but can someone explain the RPU thought process? or just maybe where I could read aobut it.

ty

Instead of getting the cash value out of a policy when you surrender it, you can take advantage of the Reduced Paid Up non forfeiture option. Which means that the client takes a reduced death benefit in exchange for not paying anymore premium.

Example:

10k policy $55/month
RPU value is $3.5K
New policy for $6.5k @$40/month.

total db is still 10k premium dropped by $15/month

disclaimer: these numbers were pulled out of thin air but I think it makes the point.

 

[WinoBlues]

Instead of getting the cash value out of a policy when you surrender it, you can take advantage of the Reduced Paid Up non forfeiture option. Which means that the client takes a reduced death benefit in exchange for not paying anymore premium.

Example:

10k policy $55/month
RPU value is $3.5K
New policy for $6.5k @$40/month.

total db is still 10k premium dropped by $15/month

disclaimer: these numbers were pulled out of thin air but I think it makes the point.

You are better than I am. I would have given them $15,000 for $50./mo.
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I know all about replacement and cashout etc but can someone explain the RPU thought process? or just maybe where I could read aobut it.

ty

The non forfeiture options are listed in most if not all Whole life policies. Shows the CV, Reduced paid up and Extended term values per year. Check out any WL policies you get to deliver. The table should be in there.

If you do the RdPu and add more for less. It is going to be hare for the other guy to conserve this case. And hard for the next guy to replace you.

 

[nfl72]

thanks for the info.

Biggin did you state your from Mi? and if so where do you work?

 

[Todd King]

Next time a client decides they would like the cash values, get in touch with the company (with the client) and first ask them how much the client can get in the form of a loan, then ask how much they would get if they surrender the policy. Many times you might find they can get more on the loan than with a full surrender.