Ask to get the verbal representations in writing. Then see what happens.
Dislodging UL Policies for FE Coverage
- Thread starter Rearden
- Start date
Ask to get the verbal representations in writing. Then see what happens.
- 586
Okay, Justify for me, please.
Why is that I should replace my $25,000-$50,000 GUL or IUL
with your $25,000-$50,000 WL?
Lets start with paying 4x the premium for your product,
Okay, GO!
Sometimes you can get it for a lower or same premium and never worry about the policy lapsing or premiums going up.
BAM! I just rocked your world!!
- 15,041
There is nothing easier to replace than current assumption UL.
Do you want a guaranteed premium and guaranteed coverage for life? Yes
Do you realize your current policy guarantees neither? So can you get me a policy that does?
Boom, UL replaced. To replace the GUL, just ask about cash value. Either it is important to them or its not. If it is, easy replacement.
- 4,132
med?
It's going to be case by case concerning ULs. If they were sold years ago as minimum premium policies they may only have a few years left and the premium to save them may make a WL seem real cheap. Nothing kicks ya in the ass like term rates when you get old.
As others have said, until they get something in writting to review there's no real idea of what will or won't work. That's really what the agent has to do is get something directly from the carrier to review.
Anytime you're in a replacement situation be aware that everything becomes an individual case at that point. There are no "fixes" to be sold prior to seeing what the existing policy is doing.
Maybe you can help, maybe they're fine where they are?
Don't know till they get an updated illustration.
It's going to be case by case concerning ULs. If they were sold years ago as minimum premium policies they may only have a few years left and the premium to save them may make a WL seem real cheap. Nothing kicks ya in the ass like term rates when you get old.
As others have said, until they get something in writting to review there's no real idea of what will or won't work. That's really what the agent has to do is get something directly from the carrier to review.
Anytime you're in a replacement situation be aware that everything becomes an individual case at that point. There are no "fixes" to be sold prior to seeing what the existing policy is doing.
Maybe you can help, maybe they're fine where they are?
Don't know till they get an updated illustration.
- 586
Rather misleading for the client in my honest opinion. Although true and its sales, but misleading. With current assumption their chance of having their policy lapse is almost none? Especially if they have been slightly over funding for some time.
Unless they were genuinely concerned about it with out me blowing it out of proportion. I would feel like I accomplished nothing but the lining of my pockets and sticking an old lady with a huge premium she didn't need.
Not saying it doesn't happen, but It's certainly not every day clients jump out of their seat to pay 4x the premium to have cash value.
- 15,041
There are plenty of crashing UL policies. Don't think they aren't.
Second, odds are the person was previously mislead into thinking the UL was a WL policy. You're just putting them with what they wanted from the start.
And for the record, I can't recall ever replacing a policy. I was always asked to do it after I explained what the current policy did and what the policy I was offering did. There were also plenty of times the person stayed with what they had. It is their insurance. But there is nothing easier than replacing a policy that was improperly sold.
- 17,069
ULs are replaced every day. Most are older ULs that are crashing. If I run into a GUL (which is pretty rare with seniors) I check it to see if the guarantee is still in effect. I have found one that wasn't. From day one the couple had been paying for 3 years $12 per month under what was required for the lifetime guarantee.
Also replaced a $50,000 GUL simply because an agent oversold a senior and she was struggling with the premium. She simply wanted around $10,000 to $15,000 coverage and the agent sold her what (in his mind) was a better value.
It was better per $1,000 but she was struggling to afford the premium. And she had no desire for the extra death benefit.
I sold a fair amount of GUL last year. But it's definitely not for everyone.
- 586
A UL that is on track and properly funded is what I'm referring too.
That may be the case, or simply they we'rent educated on how a UL works and how to keep up on it. Could be a lot of things really.
I wasn't trying to imply that you do or did. Just that I wouldn't feel comfortable doing it unless I was put in the situation you state above.
- 15,041
I'll replace in a heartbeat if I think it will improve things and the client wants it. Otherwise, I just leave it alone. And it has to be both, involving yourself in policies where you can't help or help isn't wanted usually backfires.
I am not a real big fan of current assumption UL, I think it benefits the insurance company more than the insured in most cases. But UL has many uses, particularly with a more savvy consumer.
However, I can't recall a single CA UL where the person really understood what they had. All they knew is that they wanted permanent coverage and that is what the agent sold them. Sometimes I replace, sometimes it is going to be ok, and sometimes the client can't afford or doesn't want to fix the situation. I help when I can and move on when I can't.
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