Dividend Paying FE Plans??????

[Rey]

If it was a 15 year pay policy, it would be paid up in 15 years..not reduced paid up.

Not sure I've seen a 15 pay. They're usually 10 or 20 pay.

I just pulled up an illustration of 10 pay WL on a 65 yo, female, non tobacco, with 10k DB for ~$77 per month.

With an accumulated cash value of ~$5900, it can be turned into reduced paid up of $10k DB after 10 completed years of being in force.

The appeal of reduced paid up is that the surrender cash and loan values remain. No more recurring premium payments and and an intact DB are attractive.

 

[goillini52]

I just pulled up an illustration of 10 pay WL on a 65 yo, female, non tobacco, with 10k DB for ~$77 per month.

With an accumulated cash value of ~$5900, it can be turned into reduced paid up of $10k DB after 10 completed years of being in force.

The appeal of reduced paid up is that the surrender cash and loan values remain. No more recurring premium payments and and an intact DB are attractive.

Okay....good to know.

 

[yabadabadoo1026]

Not really bogus. It's a legitimate concern. You just need to be able to handle those concerns.

JD I say if the guy came in and put her in a better plan on its merits then that's totally fine but to scare her out of a 5 year policy with this certificate BS casts doubt on him and I suspect it may not turn out to be just a she understood it but I hope it is for her sake-- it's long been on tiny renewals only so I'm not losing a wink of sleep over it. It's too late now but I would handle the BS by telling the lady they've been around 140 years and they're not going out of business much less during your lifetime to put your measly 5000 at risk of not being paid. With all due respect I stand by its a bogus scare tactic and it didn't stop you from being a big RNA seller a while back

 

[Baseball7]

"With all due respect I stand by its a bogus scare tactic"

Agreed

 

[jdeasy]

JD I say if the guy came in and put her in a better plan on its merits then that's totally fine but to scare her out of a 5 year policy with this certificate BS casts doubt on him and I suspect it may not turn out to be just a she understood it but I hope it is for her sake-- it's long been on tiny renewals only so I'm not losing a wink of sleep over it. It's too late now but I would handle the BS by telling the lady they've been around 140 years and they're not going out of business much less during your lifetime to put your measly 5000 at risk of not being paid. With all due respect I stand by its a bogus scare tactic and it didn't stop you from being a big RNA seller a while back

Call it what you want but the maintenance of reserve clause is a real issue. And that's coming from a guy that has lead with a fraternal for 9 years.

I agree it's not going to be a problem the way agents tell them it is. Hell, I just responded to another poster right here on the forum that was misrepresenting the guarantees of a fraternal.

My point is that you can't unring that bell when they do that. You have to be able to explain it.

leading with a fraternal I've had that used against me so many times I can't count them. This area is saturated with agents and 2 major IMO's that send agents into this area, Howe and Securus, train their agents to use that clause against fraternals.

So far I've saved every one of them.

 

[Baseball7]

It's best to get out in front of it when you know you're in a saturated area and someone is going to be behind you.

 

[yabadabadoo1026]

It's best to get out in front of it when you know you're in a saturated area and someone is going to be behind you.

i'd appreciate your and JDs suggestions on what to say to get out in front of it-------------when you hear you lost one on the back end due to this its usually already gone and beyond saving. I've lot a few to the "certificate" BS

Hell I call this lady on something else and she thought I was calling to question on Foresters cancellation-----I haven't been notified yet by Foresters and she hasn't received the new policy yet/ maybe the "scare tactic" agent didn't do a replacement . All I know is she traded in an age 60 rate for 5000 of the 10000 for a age 65 rate. Im losing no sleep over this one as in renewals only--if someone does ultimately do something stupid because they didn't call me first I'm fine with them having to have to live with it. For her sake I hope the rest of the scenario is how she understood it and conveyed it to me and if so likely a good replacement. ( lol, until she said she questioned if shed make it to 80). If not, there wont be any money reinstating her but only satisfaction in putting a chargeback on the guy

 

[Baseball7]

What I typically say is...

"Ms.Client now Foresters isn't like a mutual insurance company. They have this clause called MOS that they've used once since Abe Lincoln......

Basically if anyone comes after me and tries to scare you with this you'll already know Foresters survived war, american ecomonic collapse, etc and never used it so don't let some new agent scare you."