Replacing Universal and VUL policies

[shonceman]

Apples and Oranges. If you specialize in FE, then do so. Compliment them on having the forethought to purchase life insurance then position your FE policy as something in addition to and altogether different than what they have (stress the guarantees!). Don't concern yourself with what they already have, sell what you have.

You're really slowing yourself down getting into that muck. Call the company for an in-force illustration? Seriously?

I agree with you. A FE agent doesn't really have time to go down rabbit trails & try to solve everybody's problem. But if he's more old school like me & wants to have a long term agent-client relationship, helping people solve coverage problems is what I do. So I do want to get into it.

I took care of an orphan policyholder for one of my carriers about a year ago. The lady wanted coverage on her adult daughter. Her other policies were on other adult children. I asked about her own life insurance. She said she used to have it with the same company, but another agent came by and gave her $25k for the same price as she was paying for $10k. Naturally, I asked her to show it to me. What I discovered was a UL that would run out in about 8 years at current assumptions.

She struggled to believe that she had a problem because the other agent seemed like an honest guy (which he may have been. Honest doesn't mean knowledgeable!). So we called the company and ordered an inforce illustration, and I asked her to call me when she got it, which she did. When I went over it with her, she understood her dilemma. She didn't want to do anything about it, though. She's in her late '70's and doesn't think she'll live another 8 years anyway. I think she will, but I left it alone for now. I do my best to educate. It's up to the client to decide.

 

[HoosierLife]

Even as an FE agent, I would still always order the current illustration. Sometimes they will give you the illustration numbers over the phone. Rarely.

I still explain the guarantees. But until clients see it or hear it from the carrier, they’re not going to believe you.

 

[WinoBlues]

Even as an FE agent, I would still always order the current illustration. Sometimes they will give you the illustration numbers over the phone. Rarely.

I still explain the guarantees. But until clients see it or hear it from the carrier, they’re not going to believe you.

Another reason to have them in your file: If the client dies during during the contestability period and the claim is denied. Or even if it is paid but the face is a lot lower than the UL and little Johnny and Suzi want to know why that insurance salesman sold poor old mama that overpriced little policy.

 

[crk007]

OP here opening this back up for some more help. So far working with this couple has paid off. On my second trip back to order the inforce illustration I sold the husband a $70 policy, then yesterday when we went back to review the illustration they took out a $40 10 pay on their daughter that I had mentioned to them before.

Now I'm in a dilemma that I'm not sure what to do with the wife's UL policy. She is age 57 NT and no health issues. She currently has $50K face on the UL and is paying a $25/month premium.

The illustration shows at the current premium on the guaranteed side she will lapse at age 67. The non-guaranteed side she is good until age 81. They sent a couple other illustrations showing if she increased her premium it could buy her a few more years on guaranteed and non-guaranteed.

After talking with them, she really doesn't need $50K. $25K would be plenty for her. So I am going back later today and we are going to call the company as ask them what her premium would be if we reduced her face value to $25K today and the policy would guarantee $25K to age 100. If I can get her into a whole life policy for a better rate and get her out know while she has $5300 in cash value I was going to replace.

Thoughts on my strategy here? And before you all rip my for spending so much time on this, they only live 10 minutes from my house so not really a big deal meeting with them multiple times on my off days.

 

[shonceman]

OP here opening this back up for some more help. So far working with this couple has paid off. On my second trip back to order the inforce illustration I sold the husband a $70 policy, then yesterday when we went back to review the illustration they took out a $40 10 pay on their daughter that I had mentioned to them before.

Now I'm in a dilemma that I'm not sure what to do with the wife's UL policy. She is age 57 NT and no health issues. She currently has $50K face on the UL and is paying a $25/month premium.

The illustration shows at the current premium on the guaranteed side she will lapse at age 67. The non-guaranteed side she is good until age 81. They sent a couple other illustrations showing if she increased her premium it could buy her a few more years on guaranteed and non-guaranteed.

After talking with them, she really doesn't need $50K. $25K would be plenty for her. So I am going back later today and we are going to call the company as ask them what her premium would be if we reduced her face value to $25K today and the policy would guarantee $25K to age 100. If I can get her into a whole life policy for a better rate and get her out know while she has $5300 in cash value I was going to replace.

Thoughts on my strategy here? And before you all rip my for spending so much time on this, they only live 10 minutes from my house so not really a big deal meeting with them multiple times on my off days.

Reducing face sounds like a great solution. But I'd want to know about a little longer guarantee. Not that many live past age 100, but It's not as uncommon as it used to be. Maybe ask about to age 121.

 

[WinoBlues]

Depending on how old and design of the old UL you may not be able to put enough premium into it to carry to age 100.

I would also check into a GUL option. Maybe buy down the monthly premium with a dump in.