Simp Issue 20yr Term
- Thread starter Shalom
- Start date
- 11,997
At the risk of starting conflict, why is she going with a 20 year term? I see you're posting this in the final expense forum, so why not going with at least a GUL?
Are there any simplified issue GUL's out there? Most FE type people will never go through a paramed.
- 11,997
There aren't many, but the notion of selling someone that's nearly 60 a 20 year term policy borders on absurd. There may very well be a good reason for it, such as covering the term of a loan or some type of a pension offset, but it doesn't seem like it's the right fit.
Depending on health, you still might be able to get them through an underwritten policy just the same, so it may make sense to do some more homework on the health and talk to some underwriters before selling temporary coverage to someone that likely needs permanent coverage.
There is a very decent chance that if you sell someone that is nearly 60 a 20 year term policy, they'll live to be old enough to make the last payment on the policy.
- Thread starter
- #5
OP here, She currently has a 20 yr term with primerica that she would like to replace. She is a referral from a friend that works for a big life company. (they would not write her based on weight, if they did she would pay $184 month from that company)
She insists on 20 year term, of course I will give her options but I feel it is my duty to start with what she wanted as a base for the presentation.
If someone wants to replace a blue motorcycle I am not going to bring her a yellow bus until after I have shown her the blue motorcycle.
She insists on 20 year term, of course I will give her options but I feel it is my duty to start with what she wanted as a base for the presentation.
If someone wants to replace a blue motorcycle I am not going to bring her a yellow bus until after I have shown her the blue motorcycle.
- 19,647
AmAm has the Easy Term. It's simplified issue and will do a 20 year term at that age.
I certainly wouldn't recommend term and would try to talk her out of it, but there you have one that will write it if that's where you want to go.
- Thread starter
- #7
Thanks JD, can you give me a quote so I know the ballpark? My intention is to meet with her and give her all her options. I just needed someplace to start.
From what I understand it is mostly her weight that is hurting her. Can you recommend a company that has a liberal to no weight policy?
- 11,997
If the client is insistant about getting a product and they understand what it is, then that's certainly their choice. A friend of mine that is a fairly intelligent man (runs his own professional business, does well for himself, has employees, etc) wanted a quote from me on term insurance. I gave him the quote and told him what a UL policy would run and he said "why would I want that?" I explained the difference between a UL and a term policy and he then told me that's what he thought a term policy was, "permanent coverage".
You also do have some professional liability here. Although it's unlikely anyone is ever going to make a claim against an agent for selling an old lady term instead of a UL or FE policy, it's your responsibility to make sure that you're explaining to the client the coverages and what makes the best sense for them. Some property and casualty agents will have their clients sign a form stating that they decline the recommended liability limits and only want state minimums because they don't want anything coming back on them. Sure, it'd be giving the client what they want, but as an insurance agent it's our job to explain to them what they have and make the appropriate recommendations.
In my (not so humble) opinion, if you're selling life insurance it is your obligation and duty to find out what the client is trying to accomplish with the life insurance before making a recommendation. Investment professionals have to fill out suitability forms to make sure they're selling the right products and have it documented correctly and while I don't think the government should get that involved in the sale of life insurance, it's certainly something to think about.
Do you see my point?
- Thread starter
- #9
Josh I completely understand your point. I just wanted to make sure that what she is asking for is doable in the first place, otherwise it might be bait and switch.
I am a big believer in education, so I will do my best to educate her on her options. I may find out something that my friend did not when he talked to her.
Her preference is a non med simplified issue (I think that is most likely her main issue). She has 50k in coverage and would love 100k but I think that will be out of her price range.
Josh do you know of any GUL/UL that is non med that you would recommend?
I am a big believer in education, so I will do my best to educate her on her options. I may find out something that my friend did not when he talked to her.
Her preference is a non med simplified issue (I think that is most likely her main issue). She has 50k in coverage and would love 100k but I think that will be out of her price range.
Josh do you know of any GUL/UL that is non med that you would recommend?
- 11,997
Setting aside that it'd be a good idea to get more details on her health history and talk to an underwriter (Assurity is really good at talking to folks), Fidelity has a non-med GUL in some states. They claim it's fully underwritten, but there is no paramed, so it's somewhere in the middle.
Another flag that's going up is the question of how long she's had the policy with Primerica. Any idea on that? My guess is if they took her, someone else would, but the question revolves more around when she started having her health issues.
Some other points of consideration in no particular order:
-Term usually has price bands so a $99,999 policy can be noticeably more expensive than a $100,000 policy because that's where a common break point is. The difference in price between a $50k and a $100k policy might not be much (most carriers don't want to go below $100k anyway), and the difference between $75k and $100k is even less.
-If you can't convince the agent to see the error of her way, at least put it with a decent company that has a good conversion option. Assurity doesn't always have the best rates, but they can be pretty helpful and they're very easy to work with. I recommend them because I think they're a good company to work with, but not everyone shares my opinion.
-Make sure you get an illustration of her current policy to compare apples to apples. It's entirely possible the reason she wants to switch is that her policy is up and she wants to be getting a better deal because she knows her premiums will be going up soon.
-This might be a case that will do better with a fully underwritten carrier. Most simplified issue products just model the risk around a specified table risk. Even if she goes table 6 it's probably not going to be more expensive than Primerica's standard rates.
Another flag that's going up is the question of how long she's had the policy with Primerica. Any idea on that? My guess is if they took her, someone else would, but the question revolves more around when she started having her health issues.
Some other points of consideration in no particular order:
-Term usually has price bands so a $99,999 policy can be noticeably more expensive than a $100,000 policy because that's where a common break point is. The difference in price between a $50k and a $100k policy might not be much (most carriers don't want to go below $100k anyway), and the difference between $75k and $100k is even less.
-If you can't convince the agent to see the error of her way, at least put it with a decent company that has a good conversion option. Assurity doesn't always have the best rates, but they can be pretty helpful and they're very easy to work with. I recommend them because I think they're a good company to work with, but not everyone shares my opinion.
-Make sure you get an illustration of her current policy to compare apples to apples. It's entirely possible the reason she wants to switch is that her policy is up and she wants to be getting a better deal because she knows her premiums will be going up soon.
-This might be a case that will do better with a fully underwritten carrier. Most simplified issue products just model the risk around a specified table risk. Even if she goes table 6 it's probably not going to be more expensive than Primerica's standard rates.
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