Replacing Final Expense Polixies

RonRoberts

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I have been noticing huge differences in cash value and paid up build up between carriers in these policies when sitting down with the prospects. Does anyone compare the product they ate selling to what the client already has when replacing or is it strictly about price and saving the client money per month?
 
I have been noticing huge differences in cash value and paid up build up between carriers in these policies when sitting down with the prospects. Does anyone compare the product they ate selling to what the client already has when replacing or is it strictly about price and saving the client money per month?

MOO builds up cash value quicker than any other carrier I have noticed. Oxford builds up the least.
 
I look at everything. I have had clients chose to go with a higher premium for the same coverage they have now just to get the cash value.

More time than not I save them molney and they get their cash value, but sometimes they will pay more for cash in hand now.

That really, really overpriced crap out there is ideal for those situations. A year ago I replaced a $20,000 policy the guy had for 6 years. I was able to get him $25000 for very same premium plus he got almost $3000 cash from his old company.

Those are the good ones. Just show the client all their options. As travis says, those policies that have a good amount of cash in them are not "balanced in the client's favor".

Explaining to them how it all works and what they are paying for is usually all you have to do.
 
If I am dealing with an FE client, what the hell else are they going to do with the CV that makes more sense than cashing it in if they find a better policy?
 
If I am dealing with an FE client, what the hell else are they going to do with the CV that makes more sense than cashing it in if they find a better policy?

Well not exactly a FE approach but you could use the CV to buy down the premiums on a new policy or get additional death benefit. Though I don't know to many FE policies that will do that more an underwritten and illustrated approach.
 
I've found that the client is usually more excited to get at the cash than try to to get the most bang for the buck out of a policy. I've had many cases where they would do better by taking the reduced paid up amount and buying a policy to make up the difference in death benefit and they look at me like I'm speaking Swahili or something. That happened so often that I don't even mention it anymore. My best was a guy that I gave the same DB for $1 less per month and got him a check for $7,300. It was a door knock and he REALLY didn't want me to come in so I leaned in and said "Hey that must be Mary back there!" and he thought I knew her or something and let me in. I thought he was going to hug me when I left.
 
Well not exactly a FE approach but you could use the CV to buy down the premiums on a new policy or get additional death benefit. Though I don't know to many FE policies that will do that more an underwritten and illustrated approach.

Second, Or use to help short pay a new policy. Many times we are able to use the SV to reduce pay up the old policy. Some of the advantages to that are, non contestable death benefit, paid up coverage and less needs to be bought to get them back to the original face amount. We have also used the SV to Extended Term the old policy to get past the contestable period.
 
MOO builds up cash value quicker than any other carrier I have noticed. Oxford builds up the least.

I lost a policy I had placed with Settlers awhile back and even though it had only been in force for 4 months, it had a cash value that was equal to about 75% of a month's premium. Had never seen a policy that built cash value that quickly, overpriced or not..
 
rousemark said:
I lost a policy I had placed with Settlers awhile back and even though it had only been in force for 4 months, it had a cash value that was equal to about 75% of a month's premium. Had never seen a policy that built cash value that quickly, overpriced or not..

I sell a lot of max funded plans and having 75% of what the client put into the policy in accumulated value at the end of year 1 is the norm not the exception. But I know this isn't a FE type sale.
 
Had a client let Foresters lapse. Client can't afford to catch up on premium to renew policy. How long after lapse does the agent have to wait to sign her to same policy with Foresters and get commission ? Is it full commission?
 

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