Good Income Generator

[moonlightandmargaritas]

Where is James, our resident guru of life insurance? I would like to see his opinion of this scheme inasmuch as I consider him to be a LI expert.

He's out canvassing today for Conseco worksite biz.

 

[dimpil1]

This scheme sounds more like it is driven by what an agent can do to get a commission versus what you would want want for your father or mother. Undoubtedly, there are some instances where the exisiting policy is so bad that replacement and a new plan are desireable. We all know that but it also sounds like in this instance agents are systematically doing it just because it can be done.

I might change my thinking with more facts but it sounds shlocky to me at this time.

Winter

To date, I, have not raised the prem on the client, kept their whole life at the same face value, given them the cash back in the old policy. IF the senerio warrents. IF the prem is rasied and the client doesn't want the money from the old policy, I leave it alone. However, I've run into many that work out from the expample I gave.

 

[dimpil1]

You might want to review the tax code before making this statement . . .



They also had issues with the so-called "vanishing premium" concept.

In addition, you are dealing with the elderly you need to be especially careful about changing plans around. Too many watchdog groups out there accusing agents (many times justified) of tricking them into swapping out an old plan for a new one.

All states have D&R forms that must be used when replacing an older policy with a newer one. Are you filling these out every time & filing it with the application?

YES in NC you have to fill one out with EVERY policy regardless if you are replacing it or not. You also have to give previous company info and policy numbers.

 

[dimpil1]

Okay, The founder did not lose his licence and I'm not trying to defend anyone, but out right lies is wrong also. The founder RETIRED after selling AMLS for, 150M.

However, That is not the point.

I meet a lady who had a $25k policy, had cash value of $15k, borrowed $12k and now her policy is worth $13k. She is paying back more then she would if she cashed out the policy and took out a $13k policy even at age 72. With interest. HOW is that better for the client??

No I don't have all the answers, but again, how is lowering a payment and given an influx of cash doing harm?

Also I'm a women.

 

[dimpil1]

I might add...that generally...all LEGITIMATE companies frown upon using replacement as a systematic method of prospecting...especially to the elderly.

Dimpil1...Can you scan and post on this forum the technique that you are being taught? If you feel it is legitimate, you'll have no problem with that request.

I just posed it in on page 1. It's not written down anywhere. Basic stuff like, getting in the door is but structuring things isn't written down. SO I can't not do what is asked or I would.

 

[dimpil1]

This Ameri-Life is among the most low-budget, bottom feeding agencies that one could find.

Here's what says it all..

"I found something that puts 500-1,000 per week in my pocket."

As opposed to...

"I found something that is valuable for my client. As a result, I enjoy an extra 500-1,000 per week in income."

Big difference.

You know, I never thought of it like that. YOU are right. I WILL NOT lower my clients payment, I will let the insurance company keep the cash value and I will let the client borrow to get it, thus lowering their face value and paying interest on money thier beneficay's will NEVER get. Humm so much nicer.

IF something allows me to produce and income, AND I am helping my client, which I trully believe 100% in my heart I have left them in a better position. Then I've made a profit, I see a win win situation. But somehow I'm now a bottom fedder? WOW!

Should I also leave their variable annuity alone? Should I let a senior expose himself to market conditions when there is a better way using FIA's to protect their assets, without fees, and grow their money? Should I not tell them about that because I may make a commission??

IF I would have said, I found something that lets me put $5,000 to $25,000 in my pocket a week converting VA's to FIA's, giving them 5-12% bonus and 100% believing I'm doing a better job for my client, would I still be a bottom feeder?

I guess by you standers, making money off doing a job would be.

 

[dimpil1]

You aren't using term or UL for the new policy are you?

And you don't want to leave them believing that "dividends" will make future payments for them. I know that was a big part of the Met and Pru lawsuits.

NO, regular Whole Life immediate issue. No dividends they pay.

Again, I only do this if it lowers the payment. Heck I've lowered payment and not given CV to client as they didn't have the policy long enough. I've also, IF the client is not going to be bettered by this, I leave it alone and move on to other points I could sell on, LTC, Annuities, MA's, Supp's, whatever. I just know that doing this adds to my income. I also sell supps and MA's on a regular basis and a few LTC plans.

 

[dimpil1]

Also I do 1035 exchanges when I'm doing a paid up policy for the client using the CV from the old policy. However, IT is much faster to have the client get the check and just buy the policy. I closed a case I was working on for 6 weeks the other day the only issue? Waiting on the transfer. Took FOREVER.

 

[dimpil1]

In a nutshell:

1) You can cash out policy and write a new one if the client understands that they will still be paying a premium, but will have some cash in their pocket now. Never cancel a policy until the new one is issued and in force.

2) Sell them a SPWL by doing a 1035 with the CV. No more premiums and they still will have some death benefit, but lower. Works great for older people with larger policies that really don't need all that coverage anymore.

3) You can always roll that CV into an annuity.

Yes I do follow those rules. And for 1 or 2 cleints I could have done an Annuity vs the SPWL but it never occured to me (until you wrote that) as I was thinking WL for WL. Now I will add that to my thinking which really benefits those with substantial CV doing a FIA as it will pay interest, they can take out 10% a year if needed, never outlive the money if they turn it on. Hummm, thanks! I did have 2 people that would have loved that much better then a standard WL paid policy!

 

[Mr. Bill]

You asked whether you should leave the VA alone. The answer is, without proper licensing, yes.