Does Anyone Sell Term Insurance Anymore?

[xrac]

I sell term more than any other type just because of cost. Most people in my area just don't want to spend the money.

And I get so frustrated when I save people money overall on their P&C package, can write the husband and wife life and STILL be saving them money, and they STILL don't want to buy it because "they're trying to cut-back." SO frustrating! I just had a guy say well if I have to chose between renter's insurance and life insurance, I'm going to go ahead with the renter's because I need to protect my stereo equipment. (UGHHHH...). My reply was, "Well, if something happens to you I guarantee that your baby and wife won't give 2 hoots about that stereo equipment - your wife will be too worried about how to pay for your funeral and raise your child".

I know it's our job to make people understand this - and after using that example he did understand. But some people still don't get it. I haven't been selling life very long and am still working hard on overcoming objections. It's just a process I guess...

I think there are quite a few guys out there like that. I remember the first I ran into this. I felt really bad for the wife. She really wanted coverage and her husband didn't care at all. Guys like that care about their stuff (stero equipment, guns, baseball cards, etc.) more than they do their wife and kids.

 

[NinjaNic]

What is the John Hancock product called that has the LTC and for someone age 60 is it still in the ballpark for premium costs?

You mentioned 30 to 40 Y.O. paying $300 per month. I need something with LTC besides LTC stand alone as it is not affordable for most of my clients (folks getting ready to retire with pensions).

The 30yo option is the higher face ULs. A 60yo example would be $250,000 guaranteed face no lapse with a 2% LTC at $4710/year. Lowering to $100,000 would be $2000. We are no longer talking solely about life insurance though. I like to talk 2% monthly deductions--$250,000 would be $5000 a month, $100,000 would be $2000 a month that could go towards LTC costs. I always start my conversations with "I hate Long term care insurance" and then say "As a standalone policy--they are very expensive and can increase in rates."

FYI--the IRR on db at life expectancy is 5.9%

Start quoting the Hancock or Nationwide products, your clients will likely appreciate it.

 

[GAHEALTH]

As you say, you have not been selling life long. Then in my oh so humble opinion, you are doing the right thing. You are getting coverage on them. Yes it is term, but they are covered, for now. However, after the first year you need to nudge them every year or so to convert. I assume you are a capive P&C agent. Lay the ground work for the conversion at the time of the term sale.

Again IMHO, you can build a big book of term and have a great time converting and rewriting it later in your career.

Lee

Make sure that the term you sell has conversion options and you know what they are. Some policies can not be converted after the first 5 years.

I had a client contact me not too long, he had been meaning to call for 6 months to double his coverage. His term is expiring and he wants to get a new term. However, he no longer qualifies for life insurance due to health concerns. He is now forced to convert to a basic policy from $365/yr to $8K a year.

 

[WinoBlues]

Make sure that the term you sell has conversion options and you know what they are. Some policies can not be converted after the first 5 years.

I had a client contact me not too long, he had been meaning to call for 6 months to double his coverage. His term is expiring and he wants to get a new term. However, he no longer qualifies for life insurance due to health concerns. He is now forced to convert to a basic policy from $365/yr to $8K a year.

Very good point. And worth repeating. The new TermULs are a conversion killer. Truly convertible, competitively priced, term may fade to black.

 

[Liakck]

All of the financial experts say to ONLY buy term invest the rest......
never heard of anyone NOT selling term

 

[Mark]

Do you have any clients that bought term insurance from you and invested the difference?

If so, what percent of your clients did actually do this.

Buy term and Invest the Difference was just good marketing or something to say to people.

These days the debate is over buying R.O.P. or not.

 

[arnguy]

The answer, Mark, is .0001%!

 

[Cornelius]

I talked to a couple of agents in passing who promote nonmed and had no clue if the product they were promoting had any conversion options.

 

[WinoBlues]

I talked to a couple of agents in passing who promote nonmed and had no clue if the product they were promoting had any conversion options.

All about the sale. To hell with the client. Follow them around and replace them. :-)

 

[selfgen]

In my experience they tend to stick for the first 20 years. While it is cheap. The closer to the end of the term period the easier it is totalk to them about the pending expiration date. By Year 25 they are much more receptive. Conversion or rewrite.

I may need you to explain this further. Let's say I write a 30 year term for $1 million on a 40yr old male with young children. You're saying that somewhere between year 20-25 the policyholder will want to convert/rewrite? what would be an affordable product at his age and what would his needs be for life insurance? would he want more term, whole life or just basic final expense? I know there are other products like LTC, annuities, but I was wondering if you were still talking mainly about converting to another life policy.

thanks

tommy