- 3,165
I dont know what I was thinking replacing that lady's $2500 LH modified policy for $40 with a $4500 1st day coverage policy for $41!!!!
Replacing Business
- Thread starter stumpy
- Start date
I dont know what I was thinking replacing that lady's $2500 LH modified policy for $40 with a $4500 1st day coverage policy for $41!!!!
- 19,654
That's exactly what you should do. Find out if replacement is in their best interest. Contestability means that the agent and applicant be honest. If both are then contestability is not an issue.
I take issue with the message you say it send. I would say it's so important that they should be getting the best value. Especially vs using scare tactics because the agent has not become skilled enough to help them sort through the mess.
- 17,077
So no matter how bad of a deal they got they should always stick with the 1st one. Or if they have term or UL and want whole-life, just let them suffer their own consequences? So nobody is healthy or honest enough for a new contestable period?
PCB is right...I have seen people who thought they had UL or WL and had term or a min premium with a policy lapse. I think that is a great method as people do get curious if they think they have something other than what they wanted. You might also ask when was the last time you looked at the plan to see if it still met their needs.
Gee.. How long have you been in the business? That is the kind of thinking that was around 40 -50 years ago when most agents around here were members of the old NALU. It is also the thinking that left us very vulnerable to AL Willliams. Not all cases warrant replacement but if you can better the client then there is no problem with it. Incontestability only come into play if you or the client is going to falsify the app for whatever reason.
There is the illogical psychology side of things. Clients get emotionally attached to a policy after paying on it for a few years and they are relieved after getting past the contestability period. Clients don't always know exactly the procedure or diagnosis from a dr visit a couple yrs back. Also, a policy that is contested can take some time to pay the benefit, and a funeral home will not accept a contested policy as collateral. There is more than just saving the client a few bucks. If the premium savings and surrender value will have a good impact on their lifestyle, then game on.
- 19,654
I don't sell it like that, we don't need to confuse people more than they already are. We do need to consider other factors, not just price. I had a client last week who told me she had an Angiogram. It was a replacement so I wanted to be sure. We called the dr office and it was an Angioplasty - big difference. I could have saved her good money, but that policy would not pass contestability, even if she was being honest.
Exactly, not a problem unless one lies.
Well it is possible for the client to answer falsely without lying such as the lady who didn't kn ow the difference between an angioplasty and an angiogram.. However, that is where the agent comes in to play. The agent should be able to detect that type of situation and not proceed if there is doubt or do as gflo did.
