Simplified or Guaranteed Issue TERM LIFE for Low Face Amounts

[Pete Cormie]

I want to offer this to my senior clients who are looking at a mail order plan and can't or won't pay for a WL policy or who need more death benefit than they can afford. Also, they usually are ages 60-75 with some health issues.

 

[VolAgent]

So you want to be the one sticking it to them versus AARP or Globe?

 

[Todd King]

So you want to be the one sticking it to them versus AARP or Globe?

Great counter-question!!

 

[sshafran]

If that's what they want...then why not?

While I always recommend WL for FE, there are times when a term product would help. Specifically, when the refuse to buy WL. You can't fix stupid, so why not try to find a term better than AARP/NYL?

 

[WinoBlues]

Compulife. Bob really needs to give me a kick back

 

[jdeasy]

I want to offer this to my senior clients who are looking at a mail order plan and can't or won't pay for a WL policy or who need more death benefit than they can afford. Also, they usually are ages 60-75 with some health issues.

To answer your question AmAm has their Easy Term. It's a minimum of $25000 and goes up to $250,000 non med.

Foresters Strong Foundation Term will go down to $20,000.

Now for opinion, I will never sell term, {or UL}, for FE. Even if they want it. Of course, if they want it they have been misinformed and need an education. As part of every presentation I do I explain the difference between whole life and term. Even to whole life believers I go over that info. I tell them that we will not sell or recommend anyting but whole life for final expense or burial type policies. I also tell them that, when we get done explaining things here, you still want a term policy for FE I will give you the number of an agent that will sell it to you. I have yet to have a person ask me for that number.

I will sell some small term policies to people as additional coverage once the FE thing is taken care of. I just wrote a $20,000 Foresters 15 year term to replace an AARP $15,000 term. The guy already has an $11,000 whole life with me. He was intending on just letting the AARP run out at 80. He was one of the few that knew what he had. He is 65 and I put him that Foresters for $5/mo. more than he was paying AARP. His premium will not increase now until 80 where the AARP was going to increase at least two more times. He also has the option to keep the Foresters at 80 and it's for $5000 more.

The AmAm was a little cheaper on a 10 year term and it was for $25000. He was willing to look at that, but healthwise he most likely didn't qualify.

I have another FE client that we just put a $50,000 AmAm term on. It's a 10 year term. She wanted to leave her two sons $25000 each, but couldn't afford to have it all in whole life. She also doesn't plan to keep it past the initial term. She said that, "surely by then they will be self supporting".

There is a need to small face term policies. That need ain't for FE.

 

[Chazm]

To answer your question AmAm has their Easy Term. It's a minimum of $25000 and goes up to $250,000 non med.

Foresters Strong Foundation Term will go down to $20,000.

Now for opinion, I will never sell term, {or UL}, for FE. Even if they want it. Of course, if they want it they have been misinformed and need an education. As part of every presentation I do I explain the difference between whole life and term. Even to whole life believers I go over that info. I tell them that we will not sell or recommend anyting but whole life for final expense or burial type policies. I also tell them that, when we get done explaining things here, you still want a term policy for FE I will give you the number of an agent that will sell it to you. I have yet to have a person ask me for that number.

I will sell some small term policies to people as additional coverage once the FE thing is taken care of. I just wrote a $20,000 Foresters 15 year term to replace an AARP $15,000 term. The guy already has an $11,000 whole life with me. He was intending on just letting the AARP run out at 80. He was one of the few that knew what he had. He is 65 and I put him that Foresters for $5/mo. more than he was paying AARP. His premium will not increase now until 80 where the AARP was going to increase at least two more times. He also has the option to keep the Foresters at 80 and it's for $5000 more.

The AmAm was a little cheaper on a 10 year term and it was for $25000. He was willing to look at that, but healthwise he most likely didn't qualify.

I have another FE client that we just put a $50,000 AmAm term on. It's a 10 year term. She wanted to leave her two sons $25000 each, but couldn't afford to have it all in whole life. She also doesn't plan to keep it past the initial term. She said that, "surely by then they will be self supporting".

There is a need to small face term policies. That need ain't for FE.

Is the Forester's term non med?

 

[jdeasy]

Is the Forester's term non med?

Yes. Non med to $200,000. I think. May be different for age ranges. Definately for the lower face amounts we are talking here.

 

[Pete Cormie]

Thanks (except Volagent and TRK). I do the same as you Chazm. I'm a WL guy all the way for FE. The term is just TEMPORARY, but still needed in some cases.

Foresters is a no go in my state. Their 10yr term is medical and over age 55 can't get 30yr. (No 20 yr avail.)

Who is AmAM?

 

[Orangechpper]

why not sell UL for FE??? A 50k GDBUL II with ING lasts til age 125 and is cheaper than any other 50k whole life out there. What am i missing?

I just tell customers that if cash value is important to them, they need Whole life, but its more expensive. If they want a product that will last forever like Whole life, but doesn't have the Cash guarantees... go with a guaranteed UL policy. Again, Genguard from Genworth will go out to 125. Transamerica ACE will go out to 125. Same with West Coast Life and several others.