- 439
[FONT="]How one producer made $25,000 on a $500,000 term conversion/life settlement[/FONT]
[FONT="]Many agents have sold and still sell convertible term policies as a cost effective way to protect an insured's assets. As time goes on, many clients elect not to convert these policies as the annual premiums balloon. The result is another lapsed policy and victory for the large insurance company. Most term policies are convertible and can be good candidates for a settlement .[/FONT]
[FONT="] A typical $500,000 convertible term policy on a 75 year old with an annual premium of $20,000, combined with a life settlement, can earn an agent a double commission. By converting the term policy into a permanent Universal Life Policy and selling the policy to the settlement market, the agent earns three commissions; one for the conversion, the annual renewals, and one for the settlement. In the example above, the insurance commission was $20,000, annual renewals, and the settlement commission was $5,000. The client walked away with $40,000 for an asset once thought of as worthless, or illiquid. [/FONT]
[FONT="]Many agents have sold and still sell convertible term policies as a cost effective way to protect an insured's assets. As time goes on, many clients elect not to convert these policies as the annual premiums balloon. The result is another lapsed policy and victory for the large insurance company. Most term policies are convertible and can be good candidates for a settlement .[/FONT]
[FONT="] A typical $500,000 convertible term policy on a 75 year old with an annual premium of $20,000, combined with a life settlement, can earn an agent a double commission. By converting the term policy into a permanent Universal Life Policy and selling the policy to the settlement market, the agent earns three commissions; one for the conversion, the annual renewals, and one for the settlement. In the example above, the insurance commission was $20,000, annual renewals, and the settlement commission was $5,000. The client walked away with $40,000 for an asset once thought of as worthless, or illiquid. [/FONT]
