Good Income Generator

Mar 13, 2008

  1. dimpil1
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    dimpil1 Expert

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    This is what my present company teaches and thought I'd pass it along as this sometimes nets me an extra 500-1000 in income per week WHEN I do it and WHEN it can be done.

    We always ask, "Have you gotten a refund on your insurance?" A lot of seniors have policies they have paid on for a long time and have a lot of cash value built up and add a policy or two later in years. I call the DOI, get the company phone number then call the current company to get the, Issue Date, Policy Type, CV and or SV, Monthly Premium, and Death Benefit on each policy and work the best way to either 1) Get the the refund or 2) Get a paid up policy and or inconjunction 3) Issue a smaller policy to match the Death Benefit they may have lost.

    MOST times this works to save them some money, save money and give them money, or increase the preiums by a few dollars and give them some money.

    This is the 1st company I've worked for that teaches this and so far it works. One Agent we had consistanly made an income of $6-8k a month with this technique. He moved to our GA office to become a branch leader.

    Hope this helps some agents out there!
     
    dimpil1, Mar 13, 2008
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  2. Mr. Bill
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    Are we talking about replacement because rates have gone down? Sorry, I missed the "Big Picture" on this.
     
    Mr. Bill, Mar 13, 2008
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  3. midwestbroker
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    midwestbroker Guru

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    If I am understanding this, you are doing 1035 exchanges.

    Now, the refund I am lost on. Are you talking about taking a policy that is 100% paid up and closing it?
     
  4. dimpil1
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    I'll try and answer both.

    We ask the client IF they got a refund on their life, yes because the rates have come down, but it also is not a standard questions, so they open up more about who they are paying, how much they pay, and face value. We use that as another way of asking, Do you have life insurance. Which turns people off.

    Yes we do 1035 exchanges. And Yes we do paid up when the cash value is there, the client doesn't want the cash and we can also issue another smaller policy to make the up what they are replacing. LIke doing a 1st and 2nd mortgage for the 100% value of the home. (I know mortgages industry is a mess but I spent 6 years doing mortgages and this is the best analogy I've got)

    Yes we give them cash value back, refund, IF we can replace the current policy for same or less prem or if they want the cash value back, and take out another policy.

    I used less industry terms because any newbies reading may not understand 1035 exchanges.

    REFUND gets attention and gets the client to disarm themselves and not think about buying more life. Just another way to ask the question different fromt other agents that may stop by, call or get turned down.

    For expample, I just replaced 3 policies today, without doing the 1035, but by 'refund' method and new issue. Was not enough cash value to 1035 exchange with the companies we deal with and the customer wanted the cash. I also lowered all 3 premiums payments by an average of $4.50. NOT much but the cash to each client was more important.

    On average 4 other agents have been by to see these 3 differnet cleints in the last 5 months (MA season). Not one asked them if they got a refund on their policy, but all the agents asked them if they had life insurance and all 4 got the repsonse that they had enough and didn't need anymore.

    Point, I got the business because I had a different approach and I was going to give them something of value to them, MONEY, replace their current policy and they did not feel they were buying.

    So maybe old agents know how to do this, but maybe new agents want a new "trick" to have in in their bag to help them be differnt, take a new approach and maybe make a few more sales then the other guy.

    Does that help??

    Anyone have any other non traditonal approaches that may work or disarm clients with a not often heard of approach??
     
    Last edited: Mar 13, 2008
    dimpil1, Mar 13, 2008
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  5. midwestbroker
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    It is a different approach. I can see where people would open up to you about it.

    So let me see if I have this correct (I am just throwing numbers in there as examples)

    Client is 70 years old and has 3 life policies. They are all WL and have some cash value. They all equal about $50,000 in death benefit. They are paying $150 per month for all 3 combined.

    You would sell him a final expense plan for $145 per month and they cash out the rest. They keep the same death benefit, save $5 per month and now have some cash in their pocket.

    To get the info on the plans you are calling the DOI from the clients home to get the names of the carriers then calling the carriers to get the info.

    Am I catching what you are throwing down?
     
  6. CHUMPS FROM OXFORD
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    "new agents want a new "trick" to have in in their bag"

    Yea...just what new agents need....A system designed to replace elderly folk's life insurance.

    I hate to be skeptical, but...something smells a bit here.
     
    Last edited: Mar 13, 2008
  7. Newby
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    This sounds very similar to what MetLife and Prudential were training their agents to do in the late 80's and early 90's until they lost a HUGE class action lawsuit over it.
     
    Newby, Mar 13, 2008
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  8. midwestbroker
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    I agree with Chumps and Newby. You are not providing them a rebate as you are replacing their policy. This is where you can get into big trouble. If they think they are getting a rebate, they may think the old policy is still enforce. Even if you have them sign all the papers in the world saying their old policy is cashed out, they may think it is still enforced.

    The other side of this is, if they cash out a policy, isn't it a MEC and will have some taxes on it?

    Maybe, have you exchanged your old policy for a newer one or something along those lines would be more acceptable.
     
    Last edited: Mar 13, 2008
  9. GreenSky
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    Perhaps you could provide us with a specific example using a real life client.

    Rick
     
    GreenSky, Mar 13, 2008
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  10. dimpil1
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    Midwest, That's IT!!! As I said, doing that made moved 1 guy up in the company. I was focused on MA's so I'm just getting back into doing it and it does add income to your bottom line and give the client $$ or saves them $$ most of the time. Can't help everyone but those that can be helped, help you too!

    I don't see how something is wrong IF the rates are lower (2x in the last 6 years) and you can give them what is theirs. IF they took a loan out, it would reduce the face value. IF they cashed in the policy and replaced it for the same amount, what harm was done to the client? Giving them their money that the insurance company would keep if they died?? IF you get them a paid up policy and a lower 2nd to equal what they had and they still are paying less money, how has the client been harmed?? Last week I took a client paying $109 for the last 4 years (he had health issues when he got the policy so he had a 2 year wait), got him qualifed for a whole life no waiting period, he had about 350 cash in the policy and he got a rate now for 79 for a 7,000 policy. Another lady I was able to get her a paid up polilcy for 15,000k as she was losing money on her UL, which was going to go up to $450 per month and she was going to drop it totally and LOSE the cash value over time since she didn't KNOW she could get her cash out and do a paid up policy and have no more payments. She was on a fixed income of $1,500 per months. How was she harmed or left in a bad situation by what was done??

    Maybe Pru and Met did it, Don't know didn't get into this biz until 2004 so that was before my time and never trained with them. I'm sure, yet again, it was more then just replacing policies or getting clients paid up policies and or giving them the cash out. IF they increased the preimum and got them a lesser value, then I can see lawsuities. But to lower the prem or not have one, give the same or more death benefit, why would that bring a lawsuite?? As we all should know, the beneficiary never gets the cash value in a whole life, it just goes to the insurance company leaving them with less money on the hook for a benefit.

    Frankly, IF you can make yourself standout from other agents and get your clients attention, that this the bottom line, helping and being unlike other agents looking for a sale.

    I've been in the biz on and off for 4 years with the last 1.5 being 100% in. SO I'm looking to learn and develope into a better agent and be more cleint centered. That seems to increase my income and make me happier doing my job.

    I'm looking for ways to stand out from the crowd and benefit my cleint. So I wanted to share what I do and hope others could share what they do so we all could take something new and maybe learn from it.
     
    dimpil1, Mar 13, 2008
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