Not my Forte

[sman]

Now I'm not saying not to sell that cheap term policy some think is sent directly from above high and ordained by God himself, if that is how they feel fine with me!

Yep. It's called Heavenly Term Insurance.

John Hancock, 3 grand a year or about 250 a month will secure him with a solid company, solid returns history and a DB that only climbs. In twenty years his CV will be about the same as his contribution and his DB is about twice the amount.

I'll take your word for it. I haven't updated my JH software in quite some time. Just out of curiosity, what product are you using with JH? And what are the GUARANTEED cash values in 20 years?

First Colony smoker term for twenty, that is as far as they will go on a 49 yr old period. Cost is right at a 1 grand a year if he isn't rated beyond a normal use tobacco.

It's actually $1,095 (assuming standard tobacco rates). But Northwestern Mutual is $806 per year. If this person could qualify for Preferred Tobacco rates, the premium would be $650 with Northwestern, $685 with Liberty Life and $745 with Cincinatti Life.

But let's use the $806 premium. Let's take the other $2,200 and put it in a mutual fund and assume a net return of 8%. At the end of 20 years, there would be over $108,000. Is 8% too high of a return for you? Let's say 6%. There's over $85,000. O.K. 6% is too high for you. Let's say 4%. Now there's just over $68,000. The numbers are even greater if this person qualified as a preferred tobacco user.

West Coast Life 25 yr term for him not rated a smoker at 49 doesn't qualify for 30 years. So 25 is best you can buy, and not rated cost is right at 15 hundred a year.

If they qualify for the Preferred tobacco rates, First Colony will write a 30-year term for $1307 per year. Met Life for $1,364 per year.

What do you do when the client doesn't have $3 grand a year to spend on $100k of life insurance? Or what if the client only wants coverage for 10, 15 or 20 years? In this business, flexibilty is key. If I present a permanent form of coverage (I don't always do it because it's not always a fit for the situation), I also present term insurance and explain the differences. I then let the client make an educated decision. Much fewer choose the permanent coverage over term insurance.

 

[James]

Now I'm not saying not to sell that cheap term policy some think is sent directly from above high and ordained by God himself, if that is how they feel fine with me!

Yep. It's called Heavenly Term Insurance.

I like it!

I'll take your word for it. I haven't updated my JH software in quite some time. Just out of curiosity, what product are you using with JH? And what are the GUARANTEED cash values in 20 years?

This day I used Winflex. Used midpoint which projected at 4.35%, current I believe is right at 7.2. CV after 20 years was right at 60 grand (it was just alittle below the actual contributions which would be about 66 grand) at the midpoint, didn't check current projections but that would be a little higher, naturally.

It's actually $1,095 (assuming standard tobacco rates). But Northwestern Mutual is $806 per year. If this person could qualify for Preferred Tobacco rates, the premium would be $650 with Northwestern, $685 with Liberty Life and $745 with Cincinatti Life.

But let's use the $806 premium. Let's take the other $2,200 and put it in a mutual fund and assume a net return of 8%. At the end of 20 years, there would be over $108,000. Is 8% too high of a return for you? Let's say 6%. There's over $85,000. O.K. 6% is too high for you. Let's say 4%. Now there's just over $68,000. The numbers are even greater if this person qualified as a preferred tobacco user.

Well yes you are correct, I figure I would give him a break incase he did get a better rating. Yet I doubt a 49 yr old smoker is not going to be rated down a bit so the cost across the board will likely be higher.

What do you do when the client doesn't have $3 grand a year to spend on $100k of life insurance? Or what if the client only wants coverage for 10, 15 or 20 years? In this business, flexibilty is key. If I present a permanent form of coverage (I don't always do it because it's not always a fit for the situation), I also present term insurance and explain the differences. I then let the client make an educated decision. Much fewer choose the permanent coverage over term insurance.

Once again this isn't either or situation, if they don't want or can't afford one product I can pull out a AIG Term App. as quick as anyone else can. Yet I prospect the need not the product, sounds like you do the same thing yet I try to lead with high and go down, it easier then leading with low and going up! IMHO

 

[sman]

Once again this isn't either or situation, if they don't want or can't afford one product I can pull out a AIG Term App. as quick as anyone else can. Yet I prospect the need not the product, sounds like you do the same thing yet I try to lead with high and go down, it easier then leading with low and going up! IMHO

Never said it was an either or position. I just personally believe that one shouldn't get permanent coverage until one has maxed out all retirement vehicles. Once they've done so and have extra money to spend, by all means, present permanent coverage. In that situation, I would probably present a VUL over a WL or UL.

Just out of curiosity, why would you pull out an AIG term app? They are very rarely the cheapest. And their underwriting isn't that great either.

 

[James]

Once again this isn't either or situation, if they don't want or can't afford one product I can pull out a AIG Term App. as quick as anyone else can. Yet I prospect the need not the product, sounds like you do the same thing yet I try to lead with high and go down, it easier then leading with low and going up! IMHO

Never said it was an either or position. I just personally believe that one shouldn't get permanent coverage until one has maxed out all retirement vehicles. Once they've done so and have extra money to spend, by all means, present permanent coverage. In that situation, I would probably present a VUL over a WL or UL.

Just out of curiosity, why would you pull out an AIG term app? They are very rarely the cheapest. And their underwriting isn't that great either.

My first Life and Annuity contracts was written with AIG, don't know exactly but I have always counted on them to be my default. I like AIG and while maybe not the cheapest in all occassions they tend to be right there in the running. The underwriting has never been a problem for me but do have to admit they can be quite slow!

 

[Jeff]

Why is it only life insurance where people think they have wasted money?

So far I'm looking closer at a UL policy through Monumental. Dynamic II

Anyone familiar with this?

Thanks!

I'm familiar with the Monumental UL in Md....you can definitely do better as far as UL's are concerned. It's not as strong as their WL and is rarely sold here in Md. They may be offering a different version in Texas. Also are you sure it's a UL. Up here Dynamic is their WL and ULII is their ul.

 

[Superchief]

Well nevermind the Monumental idea. Turns out these products are only available to captive agents, so I don't have access to those -- just the Final Expense.

I understand your point about the John Hancock policy.

Where can I get some more detailed info on it?

 

[James]

Well nevermind the Monumental idea. Turns out these products are only available to captive agents, so I don't have access to those -- just the Final Expense.

I understand your point about the John Hancock policy.

Where can I get some more detailed info on it?

I would highly recommend finding a mentor if you want to aggresively get out and start selling "Real Insurance" for real "Needs". You have Mutual Trust, they are easy to sign up with as long as other Mutual Companies, I would suggest finding a Broker near you that you can work with. Shouldn't be that hard too find, you prospect with the "5 Way" or the "Wholesale Vs Retail" idea.

I was being funny with the real insurance and needs thing, yet it seems some are quite lost with the 5 Way or other aggressive prospecting of W/L or UL's. As in some bizzare comments about HELOC in another thread. Yet if you want to sell the bigger policies you have to go too the natural market, which isn't a 30 to 40 grand households with one income producer, obviously they aren't going to jump into a insurance contract that is likely more then their car payment.

I would suggest picking small businesses, mom and pop shops, salvage yards, mechanic shops, auction shops etc etc... Go in with the 5 Way, its an exit pitch not a product pitch and your one and only attempt is to land an appointment and gather whatever info you can get such as if they think they have sufficient life insurance. Allow your mentor to take over at the meeting, that is why you'll end up giving up 50% of whatever commissions to the mentor. The "Exit Pitch" is ingenious considering most sucessful business people have been in businesses that hasn't work out and have such expierence of failing.

Now some would suggest that one way isn't right for all people, well they have a point. Yet the idea is more involved in how you prospect, the 5 way is just a pitch that can be used while walking, calling or even sending out letters or seminar notices. Or you can use the idea of "Wholesale Vs Retail Approach" or even the great one, pass out million dollar bills! They all work, its a matter of believing in what you are selling and yes own what you sell!

 

[Superchief]

I'm not trying to get out there and sell "real insurance" for "real needs"! If you'd pay attention to my post, you'd see that I'm seeking advice to help a friend. I'm a smart enough guy to research it for him, in order to help him make the best decision. I focus on the Senior Market for many reasons...

1. I know it very well (product wise at least - I'm still polishing my marketing skills).
2. Seniors LOVE me!
3. It's growing by leaps and bounds.
4. If there ever was a "real need", helping Seniors maximize their fixed income without screwing them out of their entitlements is it!

So if you have any information for me that would help me locate some good options to present my friend with, they'd be much appreciated.

 

[James]

I'm not trying to get out there and sell "real insurance" for "real needs"! If you'd pay attention to my post, you'd see that I'm seeking advice to help a friend. I'm a smart enough guy to research it for him, in order to help him make the best decision. I focus on the Senior Market for many reasons...

1. I know it very well (product wise at least - I'm still polishing my marketing skills).
2. Seniors LOVE me!
3. It's growing by leaps and bounds.
4. If there ever was a "real need", helping Seniors maximize their fixed income without screwing them out of their entitlements is it!

So if you have any information for me that would help me locate some good options to present my friend with, they'd be much appreciated.

Just about any Insurance company will write a 100 grand W/L policy, may or may not be Par, so go write it. Only thing is to check out the ryders available, such as the Premium Waiver, I think its worth it some others do not. If you want a good Mutual company check out Mutual Trust, go too their website and sign up or call their 800 number and I'm sure they will direct you too the correct person. You'll will find numbers here, just pick out the regional office closest too you.

http://agent.mutualtrust.com/pageInfo.asp?MTLID=106&opennode=6_106

 

[arnguy]

OMG, can't we put an expiration date on these threads, e.g., one year andf then lock them. These dudes keep dredging up these really old threads that no longer have relevance!