Is FE in Clients Best Interest?

[WinoBlues]

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Hi Newby. Do you have example of term not being right product vs. FE. I'm trying to learn. Thanks

Not Newby but I have an example. a long time client calls me today because his little ten year term plan is terming out. He is now 70 and a grip of ailments. I have suggested permanent coverage to him the last couple rewrites. We had to go GI last year for his wife. These are $25,000 policies for final expenses. He is going to _pay_ now.

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FE is nothing but a marketing term for low face simplified issue whole life.

I don't proceed at any home without finding out their why.

My belief is that are two needs for life insurance, temporary or permanent. If the need is temporary then I recommend term. If it's permanent then I recommend whole life.

I don't believe in UL's so I don't sell UL's. GUL or otherwise.

Whether I write SIWL or FUWL for the permanent need always depends on the situation and health. More importantly the health. It doesn't bother me in the least to pivot to FUWL.

But, since I run FE leads and they are targeted demographically to the FE market, the vast majority of people I meet with are going to be FE prospects.

Do I believe in the product? No, I care nothing about the product or what a company might call it. I care what the product does.

That Xs 2 Except the GUL of course.

 

[jdeasy]

Not Newby but I have an example. a long time client calls me today because his little ten year term plan is terming out. He is now 70 and a grip of ailments. I have suggested permanent coverage to him the last couple rewrites. We had to go GI last year for his wife. These are $25,000 policies for final expenses. He is going to _pay_ now.

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That Xs 2 Except the GUL of course.

What except the GUL? I don't believe in UL's so I don't offer them.

 

[goillini52]

I've always been a "Burial Insurance" guy. Even working a lead that says Life Insurance on it, I'm still there to talk about a "Burial Policy" until something sends us down a different path. The terminology just rings through to most of our clientele. "Thats what the grad folks had, that's what Ma & Pa had, and that's what I'm looking for".
If someone decides they don't want burial insurance, but rather they are looking for life insurance, I can usually find some of that floating around in my briefcase also.

When I 1st started, FE was called Burial Insurance. Then in the late 80's, early 90's they started calling Burial Insurance Final Expense. I still see it referred to as Burial Insurance sometimes.

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Just to add to this point a little bit: Term only pays out 2 to 3% of their policies as well. A FE policy WILL pay out.

IF it stays on the books and IF it's not rescinded.

 

[myinsurebiz]

IF it stays on the books and IF it's not rescinded.

Wonder - overall - how many policies are actually rescinded . . . ?

 

[goillini52]

Wonder - overall - how many policies are actually rescinded . . . ?

I wouldn't have a clue. According to this guy in Kentucky, seems like I heard Americo's at around 50%, but my memory's not what it used to be.

 

[WinoBlues]

What except the GUL? I don't believe in UL's so I don't offer them.

I understand. If you do not believe in GUL you should not sell them. I do so I do

 

[entrep1776]

If you understand that EVERYONE is going to die, and that EVERYONE will incur some expenses as a result, then you should be able to understand that EVERYONE needs to have funds available for their family to pay these final expenses

Daytimer. Thanks so much for taking time to write out example. Your example really helped me understand.

 

[DHK]

I like GUL as well.

Every LEGITIMATE product has a given application where it fits and solves a problem. The challenge is figuring that out and sticking to it, regardless of compensation %'s.

 

[entrep1776]

Whole-Life is for needs that are permenant. Funeral expenses or estate planning are the two most common needs for whole-life. If you sell term insurance to soneone that needs it forever you have done them wrong. Regardless of how cheap it is.

HI newby thanks!

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Do you have an Insurance License already? What State do you reside in?

Thanks for helpful info. I'm not sure what a term rider is. I'm in IL. I'm not licensed. Any ideas quickest/cheapest way to get licensed?

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Based on the OPs comments, especially regarding the Savings Bond Drive, I get the feeling the OP never really understands what he is selling, he just follows what other people say about it.

Savings bond was 20 years ago. I was given order to contact 100% of military guys in unit about 500 peop. I did that.

How do you go about understanding what you sell? What was process you used?Thanks

 

[goillini52]

Thanks for helpful info. I'm not sure what a term rider is. I'm in IL. I'm not licensed. Any ideas quickest/cheapest way to get licensed?

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