Dislodging UL Policies for FE Coverage

[Rearden]

Hi,

I occasionally run across UL products prospects have and do a poor job trying to replace them, namely because I don't understand the product itself.

For example -- I saw a lady this week who is paying $35 a month for a $25000 UL. She's had it several years. Her Allstate agent says the policy expires at 92, and the rates are fixed for the term of the product.

Naturally, she didn't have the policy whatsoever.

She's 62 or 63. I explained to her that, according to what she told me, she would pay $12,600 into the policy, that's worth $25,000, virtually guaranteeing a lost investment (as most people don't live past 92).

My driving point was to explain to her that (a) she has the absolute best and financially-cheapest policy on the face of the planet, or (b) her policy has some fine print about future price increases, that will eventually blow up on her.

So -- how do you guys handle replacing UL policies? How do you sell WL in these circumstances, especially when there's no policy available to read through?


-Dave

 

[VolAgent]

Stop telling.

Either get the policy out, or a recent statement and show them exactly where it says the policy will end. Until you can show them this, you're just another slick-talkin' salesman.

Another approach is to get them on the phone with their phone company and ask when the policy lapses under both guaranteed and current assumption.

 

[medsuptage]

Replacing UL with WL is going to make sense in like 1 case out of 1000 cases.

Even at that, its going to take a lot of things being in your favor.

aka like the situation your in where she bought a UL with allstate.

Even if you can prove her policy lapses at 92.

Now your going to have a task on your hands that justifies paying 4x+ the premium for the exact same coverage to be covered from 92-100. Which is totally justifiable, but to the right person.

If they didn't buy a UL at a car insurance agency or one that doesn't lapse at 80/90 it's going to be near impossible.

 

[WinoBlues]

I replace Allstate, Farmers and State Farm ULs all the time. Basically what Vol said. Get their last annual report. find the paragraph that says when the policy lapses based on guarantee. It will not carry her life time. That Allstate agent maybe talking about the projected values. even if it is the guaranteed, just ask her what happens if she lives to age 93.

They are easy to replace. Many times they are combo ed with a term rider. If I can find an annual report from them maybe I can post it. FYI, an independent agent can convert their term.

Lee

Hi,

I occasionally run across UL products prospects have and do a poor job trying to replace them, namely because I don't understand the product itself.

For example -- I saw a lady this week who is paying $35 a month for a $25000 UL. She's had it several years. Her Allstate agent says the policy expires at 92, and the rates are fixed for the term of the product.

Naturally, she didn't have the policy whatsoever.

She's 62 or 63. I explained to her that, according to what she told me, she would pay $12,600 into the policy, that's worth $25,000, virtually guaranteeing a lost investment (as most people don't live past 92).

My driving point was to explain to her that (a) she has the absolute best and financially-cheapest policy on the face of the planet, or (b) her policy has some fine print about future price increases, that will eventually blow up on her.

So -- how do you guys handle replacing UL policies? How do you sell WL in these circumstances, especially when there's no policy available to read through?


-Dave

 

[jdeasy]

Replacing UL with WL is going to make sense in like 1 case out of 1000 cases.

Even at that, its going to take a lot of things being in your favor.

aka like the situation your in where she bought a UL with allstate.

Even if you can prove her policy lapses at 92.

Now your going to have a task on your hands that justifies paying 4x+ the premium for the exact same coverage to be covered from 92-100. Which is totally justifiable, but to the right person.

If they didn't buy a UL at a car insurance agency or one that doesn't lapse at 80/90 it's going to be near impossible.

You simply do not know what you are talking about.

 

[pbbaseball]

if they've got any cash in it, keep your eyes open for the single premium... i feel like those are lots of times easier to convert

 

[Biggin]

You simply do not know what you are talking about.

Preach it JD! I had a client with a $198/month Aviva UL for 50k and replaced it with $200/month of whole life for 50K. I've not noticed a real problem helping my clients get rid of the "ifs and maybes" in their policies.

 

[WinoBlues]

Preach it JD! I had a client with a $198/month Aviva UL for 50k and replaced it with $200/month of whole life for 50K. I've not noticed a real problem helping my clients get rid of the "ifs and maybes" in their policies.

Not saying it did not happen. But that sounds pretty rare. Was the UL being over funded by a bunch?

 

[Rearden]

Here's her particular situation:

- She calls her Allstate agent on her own; she tells me her agent says premiums won't change until she turns 92; at which the policy terminates.
- Also, equivalent protection for her age in a WL -- I want to think, was double the premium, if not closer to triple (don't have the rate sheets in front of me). And she was in perfect condition.

The same thing happened running an appointment several months ago; she had a Flexible Premium product (I suppose this is UL?); the representative on the phone told me that there was no way her premium would ever increase -- she was paying between $30-$40 a month for $40,000 in coverage, which would expire in her 90s, as well.

Are these agents lying through their teeth, or just as ignorant about these products as I am?

 

[WinoBlues]

Here's her particular situation:

- She calls her Allstate agent on her own; she tells me her agent says premiums won't change until she turns 92; at which the policy terminates.
- Also, equivalent protection for her age in a WL -- I want to think, was double the premium, if not closer to triple (don't have the rate sheets in front of me). And she was in perfect condition.

The same thing happened running an appointment several months ago; she had a Flexible Premium product (I suppose this is UL?); the representative on the phone told me that there was no way her premium would ever increase -- she was paying between $30-$40 a month for $40,000 in coverage, which would expire in her 90s, as well.

Are these agents lying through their teeth, or just as ignorant about these products as I am?

Could be yes to either. These guys usually only quote the projected values not the guarantees. You want to compete on the guarantees with Whole Life. If you are using GUL show it with a 1035 of the CVs. You should be able to spank them.

On your prospect. Have her order a copy of her last annual report and an Inforce illustration. That should take care all the ammo you need.

Edit: if you get the annual report or inforce black out the name and policy number and shoot it to one of the guys on the forum. Once you learn how to read it you should be able to beat them with their own paper.