- 2,960
Could somebody help me out with the steps for replacing a policy?
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Never mind. I got it.
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Never mind. I got it.
Last edited:
Replacement Policies
- Thread starter smokin goose
- Start date
- 8,707
smokin goose said:
Yes,
Step 1 sell and place your policy including replacement forms.
Step 2 Once policy is approved if existing policy has no cash value have client cease premium draft and your done.
Variation of step 2 when existing policy has cash value will depend on what you spoke to client about in regards to that premium. You use it to:
1. Reduce paid Up (RPU) the existing policy which means the current company decreases the face of existing policy to an amount that the existing CSV guarantees the premium for life.
2. 1035 Exchange cash value to new policy.
3. Cash surrender existing policy providing a check to the client from the existing company.
- 19,654
Re: Replacement
Newby showed me some good stuff yesterday that he is going to put on his site. Powerpoint training on replacements and the options.
You should check it out.
Newby showed me some good stuff yesterday that he is going to put on his site. Powerpoint training on replacements and the options.
You should check it out.
- Thread starter
- #4
- 2,960
Thanks. What is his site?
- 19,654
Re: Replacement
fexcontracting.com. Some of it is password protected so you will have to get that from Newby.
He roped me into an audio interview last summer that I think he still has on the site.
fexcontracting.com. Some of it is password protected so you will have to get that from Newby.
He roped me into an audio interview last summer that I think he still has on the site.
- Thread starter
- #6
- 2,960
I will check it out.
- 264
Re: Replacement
Addition to step 3 - I let them know the money is going to be taxable.
Addition to step 3 - I let them know the money is going to be taxable.
- 26,147
Re: Replacement
Usually that is not the case or only a small amount will be. Or you probably would not be replacing it. In my experience.
Usually that is not the case or only a small amount will be. Or you probably would not be replacing it. In my experience.
- 3,764
Re: Replacement
You could always do a 1035 exchange, into the new policy....Just another option
You could always do a 1035 exchange, into the new policy....Just another option
Re: Replacement
The default non forfeiture provision is normally extended Term Insurance -- full face term for whatever time the CV will provide.
The default non forfeiture provision is normally extended Term Insurance -- full face term for whatever time the CV will provide.
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