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.