Term Insurance Under 50K?

[pomfin]

For young people you maybe able to get 100K coverage for less than 20 dollars per month. How cheap you would like to get?

 

[VolAgent]

For something that small, you better make sure the policy fee is commissionable. For someone that young, and for that little coverage, the fee is probably almost as much as the actual insurance.

But you really ought to be asking, is this even worth your time? What else are you getting out of this, quality referrals, other business, what?

 

[Full Throttle]

But you really ought to be asking, is this even worth your time? What else are you getting out of this, quality referrals, other business, what?

Completely agree. If it's a quality person with financial potential going forward, I would write a small policy at a near loss to have a reason to keep in touch. If you do anything with securities, given he's out of a job, he may know others at his previous company that were recently laid-off with 401k rollover potential.

If he doesn't have much future financial potential and/or won't make a good client in the future, I either wouldn't write the business or do it via mail. Either way, it doesn't sound like you're going to make much on the front end here.

 

[SportsNut]

Thanks all, I was selling a couple a policy and they immediately referred me to a young couple. Passing me the phone I briefly asked the basics to quote (smoke, age, meds, then amount). The amount was only 20-25k due to the husband laid off and their insurance went with the job.

I never sold term this low and was about to let them know 50k is the minimum. Obviously when I meet with them I will show options. However since it is a referral, and their first agent experience, I wanted to at least service/quote their initial request. Who knows I may have stumbled on a niche market in these economic times, or at the very least a new door opener.

Kita

Reminds of the guy who adamently wanted only 5 yr term, nothing else. (former agent, of course). I said no problem, the best quote is XYZ... He said OK, that will work.

I said, I feel that I MUST inform you about a money saving technique for those who want a 5 yr term... He said, "Oh yeah, what is that".

I quoted him the 10 yr term which was 1/3 rd less ansd said he doesn't need to keep it beyond 5 yrs... He said great, that is even better. At the end of the call he informed me that he was going to keep it for the entire 10 yrs. and thanks me for not listening to him completely.

Moral of the story is, listen, then think... then advise based on what makes the most sense. Offer options, as it sounds that you are going to do, but don't be influenced by a gruff client voice who knows exactly what they want and nothing else.

Think of it like this... if you go to your Dr and tell him or her exactly what treatment you want, (and that isn't the best solution), do you think your Dr will prescribe your recommended solution...? Not a chance. You should be the same way.

 

[Newby]

In my opinion, people that ask about real low amounts of term insurance don't understand what term insurance is. If they want it to cover loss of income or payoff a mortgage and all debt they usually need a minimum of $50,000 and usually several hundred thousand.

When they are asking about less they are usually trying to cover a permenent need with term and that's not a good way to plan. They are not working cost effectively.

 

[arnguy]

Why even bother with term insurance under 50K----it is so inexpensive?

 

[wibroker]

If you must write this - go Western Reserve Life. They have commissionable policy fee so maybe you could buy more than a happy meal on the comp you make. They are $25k minimum.