Good Income Generator
- Thread starter dimpil1
- Start date
- 2,908
When you say lowering the premiums, what do you mean? Do you mean monthly premium payments? When you take a person age 70 and strip out the cash value, aren't you removing the option of having a paid up policy such that the client needs to continue to paying off into the twilight zone years? Are you doing full disclosure with them as to when their policy would be paid up versus what it looks like after your reduction in premium as you call it which is just a reduction in monthly payment that will now go on for many, many more years?
If I dont understand it yet, let me know. I am just commenting on what I see at a glance without reading the twelve other posts.
Winter
It sounds sensible to me. I asked a question some time ago along these lines and thought an older woman had been ripped off by an agent doing this type of thing.
Final expense - Insurance Agent Forum
I think the bottom line is when you use this technique if you are helping the customer out, with lower monthly payments, cash in their pocket, and the same or better coverage why not!
The agent I wrote about in my post was just released from the company he was writing for. I believe it was because he was thinking of his commission first and not the customer best interest first.
I also believe dimpil1 has the approach that it must be win win to make this work and is something I may be able to use when it fits. I appreciate the post dimpil1.
I did like the old contract vs the new contract better than refund though.
Final expense - Insurance Agent Forum
I think the bottom line is when you use this technique if you are helping the customer out, with lower monthly payments, cash in their pocket, and the same or better coverage why not!
The agent I wrote about in my post was just released from the company he was writing for. I believe it was because he was thinking of his commission first and not the customer best interest first.
I also believe dimpil1 has the approach that it must be win win to make this work and is something I may be able to use when it fits. I appreciate the post dimpil1.
I did like the old contract vs the new contract better than refund though.
- 10,275
"when you use this technique"
Maybe that's the key. He is using this method as a prospecting tool. Trying to find seniors with available cash in their policies.
If it is such a good idea, forward this thread to the DOI in his state and see what they think.
Many years ago...the same thing came up with ULs. The greatest idea known to man. Strip WL policies of their cash and deposit into a UL. What a mess that turned out to be.
Maybe that's the key. He is using this method as a prospecting tool. Trying to find seniors with available cash in their policies.
If it is such a good idea, forward this thread to the DOI in his state and see what they think.
Many years ago...the same thing came up with ULs. The greatest idea known to man. Strip WL policies of their cash and deposit into a UL. What a mess that turned out to be.
- Thread starter
- #45
I am not being defensive. I feel I'm doing a good service. Also WL is not paid up until age 100, 99% of the time. These are WL polices with age 100 maturity. So payment will continue until then either way and then endow, no? I also convert paid up policies for increased face amounts so it's not all cash back.
A lot of people have a bunch of 1K polices 10 pay paid up that had for 20-30 years and a lot of times I'm able to convert it into 1 policy 1035 exchange for a larger face amount. Another agent, in the office had a client who had 6 1k paid up policies that now are worth 4,800, she was able to give the cleint a paid up of 13k and made a nice commission for increasing her value. Now if the client wanted the 1,800 cash she could have still just about double her current death benefit and given her the money and the client would have come out better with more death benefit as the cost of going down is going up. At the time of her passing, do you think the family would be better off with more money or shoud she have left the cash in the policy? I see a win win there. I do that also but when I give them the option of what they want they choose the cash. Maybe I should not give them the option? Just get the as much paid up as possible and take out a smaller amount for the difference? That would also lower their payment and free up some money if needed.
I did not advice them on the UL, I said should I just leave them losing money in the UL. I can point out what they had vs, what they now have. I can point to the fees they are paying and I can have them call their broker and explain the fees and ask how much they have paid in fees since inception. Then I can point to the FIA and ask, what do they think is a better deal for their hard earn money and allow them to make a decision. However our Branch Manager is series licensed and I can bring him back.
BUT since I have not sold an annuity (only to my mother) I was merly pointing out that if someone has a option that may better their financial postion should I not point it out to them?
Again, I don't think I have all the answers, I thought this was a good technique to use to help others who may not know how to do this or may leave a house thinking the client was okay with what they had. And by golly, make a commission for yourself!
My objective is not to place the client in a bad position, but give them an influx of cash when I can or increase the overall death benefit and maybe take a premium payment off the table when I can, thus freeing money up for other things Seniors may need, meds, gas, Starbucks.
I think there is nothing more horrible for a family when a loved one dies and they find out the insurance won't cover the cost of a funeral, or the spouse is left with 1 income but 100% of the bills and still must live off the 1 income. That's the reality of some folks lives.
Heck a well off guy who's family is on a reality show (Real Housewives of Orange County) just died and he had NO insurance. 0, Nada, Nothing. So although I deal with all income levels, poor and rich, you just never know who has not faced the reality and has planned for dying as it will happen.
A lot of people have a bunch of 1K polices 10 pay paid up that had for 20-30 years and a lot of times I'm able to convert it into 1 policy 1035 exchange for a larger face amount. Another agent, in the office had a client who had 6 1k paid up policies that now are worth 4,800, she was able to give the cleint a paid up of 13k and made a nice commission for increasing her value. Now if the client wanted the 1,800 cash she could have still just about double her current death benefit and given her the money and the client would have come out better with more death benefit as the cost of going down is going up. At the time of her passing, do you think the family would be better off with more money or shoud she have left the cash in the policy? I see a win win there. I do that also but when I give them the option of what they want they choose the cash. Maybe I should not give them the option? Just get the as much paid up as possible and take out a smaller amount for the difference? That would also lower their payment and free up some money if needed.
I did not advice them on the UL, I said should I just leave them losing money in the UL. I can point out what they had vs, what they now have. I can point to the fees they are paying and I can have them call their broker and explain the fees and ask how much they have paid in fees since inception. Then I can point to the FIA and ask, what do they think is a better deal for their hard earn money and allow them to make a decision. However our Branch Manager is series licensed and I can bring him back.
BUT since I have not sold an annuity (only to my mother) I was merly pointing out that if someone has a option that may better their financial postion should I not point it out to them?
Again, I don't think I have all the answers, I thought this was a good technique to use to help others who may not know how to do this or may leave a house thinking the client was okay with what they had. And by golly, make a commission for yourself!
My objective is not to place the client in a bad position, but give them an influx of cash when I can or increase the overall death benefit and maybe take a premium payment off the table when I can, thus freeing money up for other things Seniors may need, meds, gas, Starbucks.
I think there is nothing more horrible for a family when a loved one dies and they find out the insurance won't cover the cost of a funeral, or the spouse is left with 1 income but 100% of the bills and still must live off the 1 income. That's the reality of some folks lives.
Heck a well off guy who's family is on a reality show (Real Housewives of Orange County) just died and he had NO insurance. 0, Nada, Nothing. So although I deal with all income levels, poor and rich, you just never know who has not faced the reality and has planned for dying as it will happen.
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- 2,370
Based on this thread, Dimpil1 does not seem to be trying to do anything to harm the client. I cannot imagine that Dimpil1 is doing this each day every day, just as they come up.
I can see where a commission hungry agent could put his check in front of the client's needs, but that does not seem to be the case here.
Just make sure you cross all your t's and dot all your i's.
I can see where a commission hungry agent could put his check in front of the client's needs, but that does not seem to be the case here.
Just make sure you cross all your t's and dot all your i's.
- Thread starter
- #48
I did not leave that out, when asked I did point out that most insurance is with after tax dollars not before tax dollars. FEW life polices have interest credited to it, if it was UL or a life that paid dividends, yes, but regular whole life no. Few WL's I run into have either. The 2 that I've run into that had dividends the client was already paying taxes on it as they'd get 1099 each year from the company.
- Thread starter
- #49
Nope I'm not reincarnated. I've been dimpil1 for as long as I've been on the net, 12 years or so. Name stays the same, interests changes.
Nope not my primary method of selling insurance. Your are right as they come up. Does everyone do it? No, which is fine. MA's, Life, Supplements, sell those also. Trying to get into annuities more and more these days and reading on the subject. Sometimes just use it to get in the door when people forgot they made an appointment! They general perk up when they hear refund or money back and are more interested. Lost one today could have done a paid up and additional life which would have increased her death benefit by 4k and premium by $1.15 over what she is currently paying. She had to ask her daughter, but did sell her a MA and additional policy on her son who only had 2k, but he's handicappped so had to do graded, which I don't like, but needed sometimes.
Nope not my primary method of selling insurance. Your are right as they come up. Does everyone do it? No, which is fine. MA's, Life, Supplements, sell those also. Trying to get into annuities more and more these days and reading on the subject. Sometimes just use it to get in the door when people forgot they made an appointment! They general perk up when they hear refund or money back and are more interested. Lost one today could have done a paid up and additional life which would have increased her death benefit by 4k and premium by $1.15 over what she is currently paying. She had to ask her daughter, but did sell her a MA and additional policy on her son who only had 2k, but he's handicappped so had to do graded, which I don't like, but needed sometimes.
