Speaking of UL...

[davisgroup]

As a FE newbie, I have never sold UL products. I have noticed many of my clients carry UL policies, thinking that they are the same as permanent whole life. It is still a challenge for me to break it down for them to understand the difference. Does anyone have a simple illustration or good analogy that I could use to help sell seniors who have a UL policy on buying FE? Thanks, Jim

 

[VolAgent]

There is nothing wrong with a properly funded UL.

So step one is to get an inforce illustration. If it is running out to age 100 or so, then you are probably better off leaving it alone.
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[RichMcK]

I agree with Vol, getting their last illustration, but it takes a few minutes to read it and understand the thing. But it's doable.

 

[jdeasy]

As a FE newbie, I have never sold UL products. I have noticed many of my clients carry UL policies, thinking that they are the same as permanent whole life. It is still a challenge for me to break it down for them to understand the difference. Does anyone have a simple illustration or good analogy that I could use to help sell seniors who have a UL policy on buying FE? Thanks, Jim

No, there is no "Easy button" for it. Some are begging to be replaced, some should be left alone.

I'm surprised that you find "many" of these in the FE market. I've doing FE fulltime for over 4 years and I can't caount on both hands the number of these I've found that weren't the AARP/NYL UL that they called "permanent". Don't get a lot of those either but enough to know I love finding them.

 

[Stephen]

As a FE newbie, I have never sold UL products. I have noticed many of my clients carry UL policies, thinking that they are the same as permanent whole life. It is still a challenge for me to break it down for them to understand the difference. Does anyone have a simple illustration or good analogy that I could use to help sell seniors who have a UL policy on buying FE? Thanks, Jim

The key is selling the prospect on the idea that it needs to be reviewed. A lot of these UL's written "back in the day", were projected with higher interest rates than we are now seeing, and may lapse sooner than expected. Would it hurt having someone take a look and make sure that it is healthy?

 

[b61mack]

This is how your policy works, if you die before the age of 74 your kids get 100,000, but if you die after 74, your kids get zero. That will get their attention. Then explain it to her.

 

[WinoBlues]

As JD said. No easy button.

Is this a 1985 UL or a 5 year old GUL? Or as Vol said a well funded UL? That they could actually stop paying on by reducing from option B to A and reducing the face? As CS said you need to review what they have. You can not just say UL is bad for FE. Were they old when they bought it? As Rich said you need the last annual report or an inforce to see what they have.

Or just scare them as Mack said.

See if you can collect a couple annual reports and have some one show you how to read them. Most will tell you what is going to happen to the policy. There is a lot of old Accumulator type UL out there that needs replacing. But not all of it.

Farmers and Allstate are easy to replace many times. They tend to under fund and add term riders to build up the face amount.

 

[Newby]

I run into ULs at least once a month. They usually have several annuual reports and are very easy to read. They often tell in plain English when the policy will terminate. I've never run into a consumer that read the report OR knows that they don't have whole-life.

If you can bring them to face the truth, you can help them.

 

[SportsNut]

It is really little more than a 'Temporary = Term' vs. 'Permanent = Whole Life' compairson and discussion.

Temporary - not guaranteed vs. Permanent - guranteed. Which do they want for their ins protection, and how much RISK do they want to take regarding protecting their family (paying for final expenses or whatever the purpose of the ins)?

UL is nothing more than term ins with a side fund that is interest sensitive. As rates go down, like today, the term (length of time) is shortened for your insurance coverage.

Let's assume that the prospect owned neither today and were deciding which to buy; whcih one would they select if they understand the differences? Just try to elaborate on that if they are open to understanding it. Many, however, will shut off thinking about this before you get too deeply into it.

 

[b61mack]

My suggestion is a true story, i was looking at my ex-wifes permanent policy (that was her discription) she was not getting it. "But the agent said it was permanent". she was lead to believe it was whole life. Only when i said, well if you die before you are 74, the kids get 100,000, but if you die after 74, the kids get nothing. Yes that woke her up! Her opinion of insurance agents is now even lower, something like gum stuck on the bottom of her shoe! or was that dog poo on the bottom of her shoe. They're a lot of them out they're sold by misleading agents. Who are now long gone. Grapped a few dollars of commission, screwing the client. Yes i suppose a well funded UL is ok, but most are not, and are ready to blow up. On hers she has paid 85 a month for 15 yrs, 4%, interest, has 10k of cash value, but now the insurance cost is going to 115, meaning they will take 30 difference out of the cash pot, until it is gone, 30 a month, then 45, then 65, until the cash value is 0. It is an A.R.T. meaning the insurance cost goes up every year! What is the cost of an A.R.T for a 85 yr old woman, 90 yr old woman. Get my point.