TERM FE for Seniors

[DayTimer]

I stated there is a use for term at senior ages but doesn't really make sense in most cases for FE. FE is a permanent need and you should not try to solve permanent problems with temporary solutions..

I agree 100%. I was really responding to the post I quoted where he said he doesn't like selling term to seniors. Sometimes, term is the best solution, regardless of age.

 

[WinoBlues]

I like UHL, but their term has always seemed too high priced to sell competitively. I can only imagine what the ROP does to the premium.

If you are comparing it to a $200,000 Banner or Protective FU preferred case, I absolutely agree.

However, run a 20 year ROP, T4 35 yr old male Non Med at $50,000 then at $100,000 add $25,000 child rider. Now look at a 55 year old. When we are talking FE type clients we then also have to balance how much effort and patience they will put into the process.

I just submitted a 36 year that vapes. $250k with WP and $30k on the kid. I submitted to Pru. I am quoting a client's very large 35 yo single mother $100k with child rider. The mother is paying for it. In 20 years the kids will be grown and the daughter will have a paid up FE policy. United Home Life ROP. Oh, and the UHL policy will be issue paid before Pru gets the APS ordered.

But again on non rated cases FU is a much better value.

 

[DayTimer]

When we are talking FE type clients we then also have to balance how much effort and patience they will put into the process.

I have had healthy 30-something's choose $100/month ROP over $20/month fully underwritten with no ROP for the same death benefit. Start to explain a paramed and APS to your typical FE-type prospect, no matter the age, and you will not get the response one might expect if you expect them to respond like one of us.

I have a couple of large term policies on both my wife and I - fully underwritten. My agent at the time never even discussed simplified issue. It took about 3 or 4 months for Lincoln Finanical to underwrite and issue the policies, and we were young and healthy. I have a hard time finding some of my FE folks to do a policy delivery a week or two after taking the app - Imagine trying to pin them down for a paramed, etc.

Many here seem to think price is king. It really is not. I'm not saying it is unimportant. Certainly seling someone a $10K FE policy for $80/month is not a good idea when they would qualify for a $10K SIWL with another carrier for $40/month. But there are certainly considerations beyond simple price.

 

[WinoBlues]

Dis Like term for older folks! Bad things happen

Maybe, maybe not. The same can be said for over priced SIWL compared to Par WL or GUL or X vs Y. It comes down to want and need. One of the advantages of our clients working with Independent well versed Life Insurance agents opposed to say a term only Primerica or FE only LH agents.

 

[Abrasax]

If you are comparing it to a $200,000 Banner or Protective FU preferred case, I absolutely agree.

However, run a 20 year ROP, T4 35 yr old male Non Med at $50,000 then at $100,000 add $25,000 child rider. Now look at a 55 year old. When we are talking FE type clients we then also have to balance how much effort and patience they will put into the process.

I just submitted a 36 year that vapes. $250k with WP and $30k on the kid. I submitted to Pru. I am quoting a client's very large 35 yo single mother $100k with child rider. The mother is paying for it. In 20 years the kids will be grown and the daughter will have a paid up FE policy. United Home Life ROP. Oh, and the UHL policy will be issue paid before Pru gets the APS ordered.

But again on non rated cases FU is a much better value.

I stand corrected here. It's been a couple years since I wrote them and after reading the guide and apps, I see they're going to be fantastic as a niche underwriting carrier. Also like you're saying the larger face amount WL is more competitive.

I've never pitched the conversion. Does that have to be set up from the beginning or does the client contact the agent at the point they wish to convert? And generally speaking do they get a better deal with PUWL rather than taking the ROP as cash?

 

[rousemark]

I have had healthy 30-something's choose $100/month ROP over $20/month fully underwritten with no ROP for the same death benefit. Start to explain a paramed and APS to your typical FE-type prospect, no matter the age, and you will not get the response one might expect if you expect them to respond like one of us.

I have a couple of large term policies on both my wife and I - fully underwritten. My agent at the time never even discussed simplified issue. It took about 3 or 4 months for Lincoln Finanical to underwrite and issue the policies, and we were young and healthy. I have a hard time finding some of my FE folks to do a policy delivery a week or two after taking the app - Imagine trying to pin them down for a paramed, etc.

Many here seem to think price is king. It really is not. I'm not saying it is unimportant. Certainly seling someone a $10K FE policy for $80/month is not a good idea when they would qualify for a $10K SIWL with another carrier for $40/month. But there are certainly considerations beyond simple price.

Been a long time since I had to get someone examined but back in the day before all the SI stuff exams were common. I never had much problem with it as I "sold" it as a benefit offered by the company. "Oh, and the company will even pay for you to receive a free physical. Plus, you won't even have to go to the doctor as it will be done right here in your own home."

 

[myinsurebiz]

SI-Term with ROP gives someone more DB for less monthly premium and then if they don't use the benefit - can get most of their money back or a nice RdPu policy.

But even SI-Term underwriting a little tougher than a SI-WL that may go Std to Table 8.

 

[WinoBlues]

I stand corrected here. It's been a couple years since I wrote them and after reading the guide and apps, I see they're going to be fantastic as a niche underwriting carrier. Also like you're saying the larger face amount WL is more competitive.

I've never pitched the conversion. Does that have to be set up from the beginning or does the client contact the agent at the point they wish to convert? And generally speaking do they get a better deal with PUWL rather than taking the ROP as cash?

Typically the client gets a letter from the company that the policy is terming out and the premiums are going to increase from $xx. to $XXXXX. their options are x,y, z. It would typically take a policy change form.

Yes, the RdPdUp will be more than the Surrender Value

 

[WinoBlues]

........
....... I've never pitched the conversion. Does that have to be set up from the beginning or does the client contact the agent at the point they wish to convert? And generally speaking do they get a better deal with PUWL rather than taking the ROP as cash?

>>And generally speaking do they get a better deal with PUWL rather than taking the ROP as cash?

Here is one I did in 2012.

Background - F-59, Non, Did not want an exam. Multiple HBP Meds (Four I Think) Oakland, CA. So about 3 hour drive for me.

You can see the RdPdUp is twice the SV. Still non contestable.