I agree with what you have to say as to need. However, I was addressing the mentality of a lot of low income FE buyers. Everyone knows you can oversell in terms of premium. However, if you work the low income market, you need to be aware that with many people you can oversell in terms of face amount. They just can't identify with that much money even if you can show them in black and white that is what their family needs. The end result is the same in both cases, if they buy a policy at all, it doesn't stay on the books.
Question for the FE Guys
- Thread starter Chicken Coop
- Start date
I agree with what you have to say as to need. However, I was addressing the mentality of a lot of low income FE buyers. Everyone knows you can oversell in terms of premium. However, if you work the low income market, you need to be aware that with many people you can oversell in terms of face amount. They just can't identify with that much money even if you can show them in black and white that is what their family needs. The end result is the same in both cases, if they buy a policy at all, it doesn't stay on the books.
Its very likely the parents know that if something happens to their daughter they will be responsible for paying for the funeral. A 25K policy SI through Foresters would seem toi fit the bill quite nicely. Add the childrens rider and give them a 20 pay option. You will have a nice litttle policy that will satisfy their needs for a long long time that will also be very affordable.
- 26,134
I am always open to other ideas. What would the premium be and the? And what would be the cash value in year 5?
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Also, I do not know all the Foresters' products. If you are talking SI, why?
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Couple options I would have.
Whole Life= Mom-$25,000.00 W/ABR, All children -$20,000.00 convertible to $100,000.00 at age 25. @ $22./mo Values @ 20 yrs - CV=$2,539.00 RdPu =13,800.00 @ 30yrs - CV = $5,049.00, RdPu $18,350.00
30yr ROP Term= Mom- $50,000.00 w/ABR, All children -$20,000.00 convertible to $100,000.00 at age 25. @ $24./mo. - Values @ 20 yrs - CV=$3,364.00, Rdpu = 18,600.00 @ 30yrs CV = $7,588.00, Rdpu = $28,000.00
These are standard non med. If she were a very big boned girl I would switch to somebody like UHL for the ROP term
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- 9,744
Shortsighted. It's very likely the parents know that if something happens to their daughter they will be responsible for...the two kids. Much bigger liability.
- 26,134
Another thought, if she is 24, are the parents in their early 50s. Did you have to go FE due to health.
The 25K policy from Foresters at that age group is called simplified issue but the cash value does accumulate and is added to he face value at death.
My area might be different than most but I am working in the ghettos and most of these people have no money to speak of. They get SSI and SSD . If they are looking for a policy for their kids you don't want to give them too much to think about and comprehend. Most of these people are not that sharp. They are looking for someone they can trust and want to be told what is best for thier needs.
Their worries are about paying for the funeral not about how they are going to live down the road. These people live pay check to pay check and they are very simple people. You start taling about building cash value for the future and you can very easily talk yourself right out of an easy sale.
My area might be different than most but I am working in the ghettos and most of these people have no money to speak of. They get SSI and SSD . If they are looking for a policy for their kids you don't want to give them too much to think about and comprehend. Most of these people are not that sharp. They are looking for someone they can trust and want to be told what is best for thier needs.
Their worries are about paying for the funeral not about how they are going to live down the road. These people live pay check to pay check and they are very simple people. You start taling about building cash value for the future and you can very easily talk yourself right out of an easy sale.
- 8,707
nfl72 said:
Are you sure that's the way you want to describe that to a client? With a whole life policy the beneficiary recieves the death benefit only.
- 19,647
I don't believe that is true about the cash value being added to the death benefit.
Besides, compared to RNA's whole life, {Essential Life}, that Foresters product is terribly overpriced.
True but they also know that if the mother dies, the kids will draw SS and other government benefits which are often more than she would bring in if she were working. While the typical low income client might not understand insurance and cannot really comprehend the need for a large sum of money, the one thing they do understand is government benefits.
The other thing that is most often the wrong thing to do is to place any emphasis on cash value. They haven't saved any money up to this point in their life and are not good candidates to so so now.. If you emphasis cash value, they won't forget it and as soon as they can get $200 out of the policy many will cash it in.
- 26,134
I truly mean no disrespect. However, Didn't you ask what Non Fortitude options were? I will need to see this Foresters increasing death benefit whole life before I buy that.
What is the premium for that plan with child rider?
I have and do sell in some real ghettos and also sold some real hillbillies. Probably some of my most loyal clients. I respect them and they respect me. Or I do not write them. Many I am 4-5 generations deep with. I am that guy they can trust. Many have been screwed over by FE salesmen. I rarely talk Cash Values. I am very good at replacing most FE and am very rarely replaced. We do not know each other and I am not an FE guy, like the OP, so discount what I say accordingly.
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