SImple Issue Term, is It Really a Good Deal?

[shooter]

Like most of you I have be spammed, called,
emailed, and snail mailed with offers from IMO's
telling me how great the new simple issue term
products are.

Yes, they are easy issue.
Yes, they save time.
Yes, they are not for all of your clients.

BUT,( notice how I used a big but here).
The thing that I am uncomfortable with is the conversion
privilege.

Maybe I'm only seeing a poor product are misunderstand
how it works.
With the length of the term being 20 years.
The conversion privilege only last through
the first 10.
Is that an issue?

I saw a 30 year product with the conversion privilege
only last through the first 10.

Then a conversion to what?
Just curious if anyone else has an issue with this
are a comment.

Shooter

 

[Mattschmidt]

Like most of you I have be spammed, called,
emailed, and snail mailed with offers from IMO's
telling me how great the new simple issue term
products are.

Yes, they are easy issue.
Yes, they save time.
Yes, they are not for all of your clients.

BUT,( notice how I used a big but here).
The thing that I am uncomfortable with is the conversion
privilege.

Maybe I'm only seeing a poor product are misunderstand
how it works.
With the length of the term being 20 years.
The conversion privilege only last through
the first 10.
Is that an issue?

I saw a 30 year product with the conversion privilege
only last through the first 10.

Then a conversion to what?
Just curious if anyone else has an issue with this
are a comment.

Shooter

You bring up some good points.

The smart agents are the ones who discuss these pros and con's with the client and them see the whole picture.

Some non med. Plans allow for conversions but it's nt a guaranteed convertibility feature. This could hurt somebody down the road if they were forced to go thru underwriting again.

Others just sling the non med. To make a sale and move on from the client .

Ultimately it's the clients choice on how to proceed but you should be having these types of conversations with the clients

 

[Josh]

The smart agents are the ones who discuss these pros and con's with the client and them see the whole picture.

Exactly. Simplified issue anything is going to have higher rates because the carrier is taking on more risk. On the other hand, if they run a paramed and something comes back on it then you can get a decline over trying to save a few bucks. Some customers are going to want the absolute best rate and they'll tell you that, others are going to see the value in getting it issued without having as much of a potential for a surprise decline. It's a lot easier to retain your customers if they know what they got themselves into.

 

[Golfnut2112]

In my opinion, they are a bad deal unless they are absolutely against an exam and a terrible deal if they ever want to convert. At least that is my experience with one company.

 

[shooter]

In my opinion, they are a bad deal unless they are absolutely against an exam and a terrible deal if they ever want to convert. At least that is my experience with one company.

That is really my main point about these products.
I have been around long enough to have people with 20
year term reach the 20th year.

I would hate to face them and say, sorry you had that
heart attack last year.
I don't know what your going to do for life insurance when
this runs out.

Your conversion option ended in year 10.

My bad.

Now which companies have the best conversion
options on term?

I will throw one out.
Ohio National.
What about others?

Shooter

 

[Cash]

That is really my main point about these products.
I have been around long enough to have people with 20
year term reach the 20th year.

I would hate to face them and say, sorry you had that
heart attack last year.
I don't know what your going to do for life insurance when
this runs out.

Your conversion option ended in year 10.

My bad.

Now which companies have the best conversion
options on term?

I will throw one out.
Ohio National.
What about others?

Shooter

You make more money and it takes less time so yeah it's a good deal

 

[bluezebra48]

Sagicor coverts to age 70, to either GUL or whole life. But, if you didn't contact your client before his conversion option ended, then you missed the boat. Sounds like your talking about Phoenix, which has limited conversion option but leans heavily on the living benefits. SI is good, I write Sagicor, Phoenix and MOO. Also non-med FU with ANICO and SBLI, both have good conversion options. But, just because it converts, doesn't always mean what it converts to is a good product. A+ rated Banner has one of the worst products in which to convert.

 

[Golfnut2112]

That is really my main point about these products.
I have been around long enough to have people with 20
year term reach the 20th year.

I would hate to face them and say, sorry you had that
heart attack last year.
I don't know what your going to do for life insurance when
this runs out.

Your conversion option ended in year 10.

My bad.

Now which companies have the best conversion
options on term?

I will throw one out.
Ohio National.
What about others?

Shooter

I have written Assurity, the issue I have about their conversion is the best rating your client will get on a converted policy is a table B. So if you have a healthy client I would explain why they should get a fully underwritten policy. Ohio National is a great company I use them almost exclusively except when I need a 30 yr term