The Final Expense Telesales (the Company)

[nfl72]

"Are you sure they are whole life? The Bankers Life policies I have found are usually UL. Non-guaranteed UL."

Other than FE I know very little about life insurance. What doe UL mean and what is the difference between what he has and a traditional life insurance policy.

His contract does show cash value. It seems like at the top of the application it had 19L checked off instead of 20 or 21L.

If he did infact have a UL, what is the best way to sell against it?

ty

and for the record if he did get a term plicy to cover his mortgage debt he would cancel one of his BL policies.



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[Newby]

"Are you sure they are whole life? The Bankers Life policies I have found are usually UL. Non-guaranteed UL."

Other than FE I know very little about life insurance. What doe UL mean and what is the difference between what he has and a traditional life insurance policy.

His contract does show cash value. It seems like at the top of the application it had 19L checked off instead of 20 or 21L.

If he did infact have a UL, what is the best way to sell against it?

ty

and for the record if he did get a term plicy to cover his mortgage debt he would cancel one of his BL policies.



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Any time you are replacing existing coverage, DON'T try to bluff. If you don't completely understand...walk away. Or better yet, get help. It's worth giving up the deal if you can learn from someone who knows what they are doing.

Whole-life is a closed contract that is guaranteed. The cash value raises each year (guaranteed) and they are actually becomming more and more self insured each year with less and less reliance on the remaining insured amount.

UL (also known as flexable premium) has no guarantee that the policy will ever endow. If the policy falls back on it's guarantees it will usually terminate at some point. Some of the newer ones have lifetime guarantees but many of those have been violated too.

Discovering UL policies are great opportunities BUT proceed with caution. You aren't going to learn everything you need to know on a forum. Get a mentor. Should be the guy making the big over ride off your sales.

 

[nfl72]

This client trusts me alot. I actually met him and his wife about 7 yers ago. They were referred to me to get some help on their mortgage they had pretty bad credit and the mortgage crisis was in full swing. I told them I couldnl't help them but did tell them where to go and they saved their home. They still own the home today.

I bought some of the direct mail leads from SNL and they were a lead I got. When I went to their home they rememgbered me and were very appreciative of my past efforts. They trust me and will probaly do what I suggest.

I did replace his wifes BL policy and saved them about 14 a month. Well actually I got took her from 10K to 14K and kept the same payment. I told them I had to do some research and will get back with them early next week.

These are deeply religious people and do not like to gamble. Knowing what you know about this deal would it be to their advantage to get a whole life policy with a smaller face amount?

UL, does that stand for universal life? and if so if he makes all of his called for payments can the policy still get smaller in value?

 

[jdeasy]

This client trusts me alot. I actually met him and his wife about 7 yers ago. They were referred to me to get some help on their mortgage they had pretty bad credit and the mortgage crisis was in full swing. I told them I couldnl't help them but did tell them where to go and they saved their home. They still own the home today.

I bought some of the direct mail leads from SNL and they were a lead I got. When I went to their home they rememgbered me and were very appreciative of my past efforts. They trust me and will probaly do what I suggest.

I did replace his wifes BL policy and saved them about 14 a month. Well actually I got took her from 10K to 14K and kept the same payment. I told them I had to do some research and will get back with them early next week.

These are deeply religious people and do not like to gamble. Knowing what you know about this deal would it be to their advantage to get a whole life policy with a smaller face amount?

UL, does that stand for universal life? and if so if he makes all of his called for payments can the policy still get smaller in value?

Most likely the universal life policy will implode even if he makes scheduled payments on time. Unless it's a GUL. You ned an in force illustration and then know how to read it and explain it to the client. It might fine, it may to be addressed.

 

[Newby]

This client trusts me alot. I actually met him and his wife about 7 yers ago. They were referred to me to get some help on their mortgage they had pretty bad credit and the mortgage crisis was in full swing. I told them I couldnl't help them but did tell them where to go and they saved their home. They still own the home today.

I bought some of the direct mail leads from SNL and they were a lead I got. When I went to their home they rememgbered me and were very appreciative of my past efforts. They trust me and will probaly do what I suggest.

I did replace his wifes BL policy and saved them about 14 a month. Well actually I got took her from 10K to 14K and kept the same payment. I told them I had to do some research and will get back with them early next week.

These are deeply religious people and do not like to gamble. Knowing what you know about this deal would it be to their advantage to get a whole life policy with a smaller face amount?

UL, does that stand for universal life? and if so if he makes all of his called for payments can the policy still get smaller in value?

Yes. UL policies often terminate even when the owner has never missed a payment or even paid late. They were not designed to be guaranteed and the client should meet with their agent annually to keep it on track. Rarely happens. 100% of the people I've met with UL thought it was whole life. They are certain theirs is fine because they've never had any problem with theirs.

They are always wrong. After a phone call where I force their own company to explain the bad news to them, them become enlightened.

 

[WinoBlues]

Most likely the universal life policy will implode even if he makes scheduled payments on time. Unless it's a GUL. You ned an in force illustration and then know how to read it and explain it to the client. It might fine, it may to be addressed.

The best answer.

Not all GULs loose the guarantee if payments are missed. I have several older ONL GULs that have missed several payments and the guarantees are intact. I have a WC GUL that the lady was paying just shy of $800 a month and missed several payments. This month we lowered her face and cut her payment in half Guarantee is intact. Got to get the last annual statement and an inforce.
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Yes. UL policies often terminate even when the owner has never missed a payment or even paid late. They were not designed to be guaranteed and the client should meet with their agent annually to keep it on track. Rarely happens. 100% of the people I've met with UL thought it was whole life. They are certain theirs is fine because they've never had any problem with theirs.

They are always wrong. After a phone call where I force their own company to explain the bad news to them, them become enlightened.

Yup. I ran into three old Allstate (LBL) ULs tonight that I will replace next week. Just by the date written I know what I will find.

 

[nfl72]

So it seems to be an excepted fact that some UL policies can indeed be worthless down the road.

If you had a 71 year old MNT in great health client who had 2 UL policies with a total face amount of $60,000 and was paying $310.00 per month. How would you approach it? He took both policies out within the past 9 months.

This client is not a risk taker and is ultra conservative. He wants to be able to leave his wife enough to pay off a funeral and a little bit of a cushion. Would you leave it alone or try to convert him to a FE whole life policy with no risk?

Newby half way suggested its a good thing to run into this type of client but didn't elaborate on what tact he would take. Can anybody else offer what path they would try?

 

[WinoBlues]

This is in the final expense forum. However, you are talking about traditional life insurance.

>>So it seems to be an excepted fact that some UL policies can indeed be worthless down the road.

Yes _some_ But many are excellent policies that offer a lot of bang for the premium dollar.

>>Would you leave it alone or try to convert him to a FE whole life policy with no risk?

Hard to say. You do not know if it is an accumulator type plan or GUL. The $310. sounds high. If he is in preferred to standard health it seems he is paying to much, If level pay to age 121. FE is my last option. For someone in fair health it is over priced.

>>He wants to be able to leave his wife enough to pay off a funeral and a little bit of a cushion.

Two $30,000 FE policies will cost him around $400 - $450. per month. Or maybe $40,000 of FE for $305.

>>This client is not a risk taker and is ultra conservative.

One of the biggest risk to seniors is out living their money. One of the reasons I am a fan of short paying policies. 10 and 20 pay plans. Or ROP term with reduced paid up at the end.

Here are some of the options I would have in my back pocket.

Or GUL if
Pr'd = $60,000 <$300.mo for 10 years then paid up Guaranteed.
Pr'd = $60,000 $197.mo level Or
Pr'd = $100,000.00@ $276.mo level

Std = $75,000 @$302.mo level
Std = $50,000.00 @ $295mo 10 yrs then paid up Guaranteed.
Std = $65,000.00 @ $293mo level RNA's fully underwritten WL

Once you determine if he is Std or Pr'd then it is simply. Amount, Cost or length of payments.

Lee

So it seems to be an excepted fact that some UL policies can indeed be worthless down the road.

If you had a 71 year old MNT in great health client who had 2 UL policies with a total face amount of $60,000 and was paying $310.00 per month. How would you approach it? He took both policies out within the past 9 months.

This client is not a risk taker and is ultra conservative. He wants to be able to leave his wife enough to pay off a funeral and a little bit of a cushion. Would you leave it alone or try to convert him to a FE whole life policy with no risk?

Newby half way suggested its a good thing to run into this type of client but didn't elaborate on what tact he would take. Can anybody else offer what path they would try?

 

[nfl72]

I am goin back to his house early this week and will take good notes on his existing 2 policies. He wrote one last June and one in August. When I was at his home I did a quick check on what Americo would charge and he was quite a bit cheaper.

I had written his wife already and had several appointments waiting. I told him I would do some research and get back with him.

Just for the record are the UL policies that go bad going bad early on or after being in place for many years?

Considering this guy is 71 I would think the chances of them going bad in the next 7 to ten years would be slim? JUst a guess. If 5 years of writing FE I have written 2 terms and 2 whole life the rest were all FE.

I have done some research over the past several days and it seems most UL policies are taken out well before the age of 70?

Any feedback is greatly appreciated.

 

[Norwayguy]

Considering this guy is 71 I would think the chances of them going bad in the next 7 to ten years would be slim? JUst a guess. If 5 years of writing FE I have written 2 terms and 2 whole life the rest were all FE.

Any feedback is greatly appreciated.

Just point of fact I would bet all of you "FE" policies are whole life.