Term Insurance - Cost of Waiting Software??

[Robert Barney]

If they buy a new 20 yr term now, why should they keep the current for an additional 5 years? Assuming they have the correct amount of insurance that they need, the new 20 year term will fill that need. Why pay for both?

Because the insurance is at a "bargain price", assuming it was a competitive product when it was purchased.

I may not need any more 9mm ammunition, but if you tell me you can sell me 100 rounds for $10, I'll ask if you have 1,000 rounds.

Did you read my earlier post/example?

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I agree. However, I'm assuming if they want to wait 5 years because their current policy is cheaper then the new one, they definitely won't want to pay for both...even with the better odds.

You're approaching this wrong.

If they know they will need insurance for the next 20 years, then they NEED the new 20 year policy, which will be at a much larger premium than they are paying now.

The only "extra" they have to pay, is the premium for the old policy, which will be a fraction of the cost of a new 5 year term policy. It's a bargain, don't let it go.

If they die in the 5 year overlap, double the benefit.

And yes, it's like having accidental death insurance, and the premium is probably lower, and the coverage is better.

Accidental death insurance is a lottery ticket many people buy.

 

[WinoBlues]

I agree. However, I'm assuming if they want to wait 5 years because their current policy is cheaper then the new one, they definitely won't want to pay for both...even with the better odds.

You are correct for some people. Many people will not pay both, especially when the new premium is so much higher. Some will however. Those are another opportunity for the agent when they term out.

Conversions and rewrites are pretty much the same to me when talking about benefit planning. Premium, plan and process is different of course. Usually on a conversion the premium is much higher so the clients many times drop the what is not converted. Unless we are converting early and there is still a lot of years left of the covered need still has a few years left.

 

[scagnt83]

And you'll be filing a complaint somewhere? You think an agent who just obtained a license has more right to speak to the subject of life insurance than I do, having spent 35 years in the business, 18 of those with a license?

I think that when someone is not licensed to sell a product then they should disclose that when giving advice about said product. You have not sold a policy or taken a CE class in 17 years... and your incompetent advice shows it.

Let me be categorical here:

Dropping a 20 year term policy, in the 15th policy year, is pretty darn close to stupid, particularly if the insured is over the age of 35. The fact that you need more information before making a recommendation is preposterous. I take it that you majored in the paralysis of analysis in college.

The fact that you make insurance decisions on cost alone shows how incompetent your advice is. A persons situation and needs trumps cost every time. Again, there is not enough info in this thread to make a professional and informed recommendation on what to do. Every situation has its own specific circumstances. If you cant understand the importance of a clients needs and situation then you have no business giving insurance advice.

 

[Robert Barney]

You are correct for some people. Many people will not pay both, especially when the new premium is so much higher.

Remember, waiting 5 years means a higher premium then, versus now.

age 45 - 20 year term - M PfNS $500,000 - $719

age 50 - 15 year term - M PFNS $500,000 - $840

So the premium will be higher, waiting, and the client assumes the risk that they may not qualify for the $840.

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I think that when someone is not licensed to sell a product then they should disclose that when giving advice about said product. You have not sold a policy or taken a CE class in 17 years... and your incompetent advice shows it.

I think that I have every right to offer an opinion on life insurance, licensed or not. And there are many who do.

Incidentally, I used to give CE classes. Many such classes are highly overrated.