FE Insurance

[jdeasy]

He's probably dead set on "whole life" because he wants it to last "forever." Explain to him that if he dies with a WL policy that he does not get the cash value that is in the policy, just the death benefit. Show him that the guaranteed UL is guaranteed for life (age 120) and that should change his tune.....

UL has it's place, but, that place is not for FE. Even a guaranteed UL is not the place for a 10-15 thousand dollar FE policy.

It's only guaranteed as long as a premium payment is never missed or late.

People that have been good with their money and have been planners do not need a final expense policy anyway in most cases. People don't get to their late 50's, 60's or 70's and not have their funerals taken care of because they have been good with money and had a plan.

The last thing you would want to do with those people is put them in any kind of UL. Might as well put them in a term plan. Which I won't do either.

 

[Newby]

I agree 100% with JD. A perfect example is that many times on an FE appointment people will tell you not to draft the first payment until a certain date. That's a sure sign that they live month to month.
People who live month to month are not right for guaranteed UL.

 

[jemelton]

If they want to give more money to their children ect and pay relatively that same amount of money for the coverage and they are in excellent health they should at least be given the choice to get a guaranteed UL by the agent......

 

[jdeasy]

If they want to give more money to their children ect and pay relatively that same amount of money for the coverage and they are in excellent health they should at least be given the choice to get a guaranteed UL by the agent......

The last I knew, a lapsed policy does not pay the family anything.

You must not work the FE market.

 

[jemelton]

If a whole life policy lapses, it doesn't pay the family either.....

 

[steveadlman]

If they want to give more money to their children ect and pay relatively that same amount of money for the coverage and they are in excellent health they should at least be given the choice to get a guaranteed UL by the agent......

I have sold several UL policies for FE. If you fund the policy adequately using the current interest rate not projections I believe my clients are well protected. I have them pay premiums to age 100 at the current interest rate and the policy's cash value will equal the face amount at age 100. A UL policy for FE can provide your client with the coverage they need at a lower premium versus a traditional whole life policy.

 

[Newby]

If the policy's cash value equals the face at age 100, that's basically the same as whole life. How much of a cost savings can there be?

What would the premium be for a semi healthy (standard rate) 68 year old female non smoker for $15,000 coverage?

 

[justing]

how about a 68 male non-smoker standard rate for 15K?

 

[jdeasy]

If a whole life policy lapses, it doesn't pay the family either.....

That's true, but, a whole life policy with cash value will not lapse if one misses a payment. A guaranteed UL will. Or, if the guaranteed UL does have enough cash value to pay the premium in an automatic premium loan, the guarantees are no longer in place. All they have then is an overpriced term policy.

 

[jemelton]

If they want more bang for their buck and are willing to pay their premiums, are in good health and willing to take a paramed ect. then they are better off with the guaranteed UL in my opinion.