Ok I'm fairly new and I've been doing some thinking on what's best for the lower income people that I run into that need life insurance. So as of lately instead of selling my clients that are pretty young and healthy but are pretty broke term policies ,I've been writing settlers life 10 or 20 pays ballpark monthly is about 38-44$ per month for 20-25k in coverage. Here is my logic and tell me if I'm looking at it wrong . A lot of the lower income people I meet are not financially savvy enough to do the whole buy term and invest the difference strategy, nor can they see themselves being financially better off then their current situation 10-20 years from now. So just going off the data I've found and I don't know how accurate it is less than 2% of term polices payout and less then 10% stay inforce for the whole term. So I figured if that's the case wouldn't writting them a 10-20 pay make more sense for them financially since they are already strapped for cash ? I mean eventually they'll have to convert the term into whole life which will increase their rates and they'll also continue to pay for it until they die ,so wouldn't it be better to just pay 5760 for 20k in coverage and be done with it ? Your thoughts
Thoughts on Settlers 10 Pay Vs Term Insurance
- Thread starter Cokey30
- Start date
Yes, we utilize the settlers 10 pay quite aggressively. I think it's great for not only the 50 to 60-year-old group but also for children policies.
- 18,988
Depends on what their needs are and what their wants are. Term may be the answer and whole life may be the answer.
- 16,880
Yes, you are coming out of the fog as we call it. New agents are brainwashed that term is the answer to everything. But the low income people are NOT savers. And they think of term as a horrible thing because they do not ever see themselves being self insured.
If you take notice of what people tell you on appointments, a whole lot of the seniors who had bought term when they were younger and outlived the term thought that term WAS limited pay whole-life. They thought they just paid the premium for 20-years but the coverage lasted forever. They didn't learn that they had it wrong until the term ran out.
- Thread starter
- #5
I hear that often and after doing the numbers and looking at the possibilities I just don't think term is worth it for lower income people that are going to end up with a high premium in most cases and lower coverage whole life policy when its all said and done. Also why is whole life bashed so much 10-20 pays seem like a great deal if you can get them young enough while in decent health, where else can you get 20k for 5600 dollars
- 591
I'm with you Cokey. I would add a 100k accidental if they're over 40, but pretty sound logic. Other than being erratic with their underwriting I'm still a fan of the Settlers product.
Yesterday, I spoke with a couple that bought a 10yr terms 8 1/2 years ago. They are past their conversion guarantee period as it had to be converted during the first 8 years. They refused the opportunity to convert a couple of times a long the way saying the permanent premium was too high.
Now, at his age 60 they are scrambling to do something. The problem is he had an arterial aneurysm in his stomach that was repaired with a Stent 3 years ago. The Dr. messed up and cut off the blood flow to one kidney. It withered due to lack of oxygen and is now non functioning. Also has HBP and high chloresterol. A smoker with some lung problems. If I can find him another term, it will cost a fortune. By term and invest the difference certainly has not worked for him.. Good chance he will die with no insurance because he did not buy a permanent plan when he had the chance
Now, at his age 60 they are scrambling to do something. The problem is he had an arterial aneurysm in his stomach that was repaired with a Stent 3 years ago. The Dr. messed up and cut off the blood flow to one kidney. It withered due to lack of oxygen and is now non functioning. Also has HBP and high chloresterol. A smoker with some lung problems. If I can find him another term, it will cost a fortune. By term and invest the difference certainly has not worked for him.. Good chance he will die with no insurance because he did not buy a permanent plan when he had the chance
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- 3,990
Whole Life isn't based here since your on a FE board. 10/20 pay has its use but its not a bread and butter part of my style.
- 18,988
I'm a huge fan of 10 and 20 pay whole life and write them often. Especially on young folks when the grandparents are buying.
But I never use settlers. Way over priced. And you have to do that stupid phone interview. Even for an infant.
Say you have a grand parent buying 4 policies. That's 4 interviews. About 2 hours on the phone with settlers.
You could give them a much better deal and be done in 30 minutes or less.
But I never use settlers. Way over priced. And you have to do that stupid phone interview. Even for an infant.
Say you have a grand parent buying 4 policies. That's 4 interviews. About 2 hours on the phone with settlers.
You could give them a much better deal and be done in 30 minutes or less.
- Thread starter
- #10
I'm a huge fan of 10 and 20 pay whole life and write them often. Especially on young folks when the grandparents are buying.
But I never use settlers. Way over priced. And you have to do that stupid phone interview. Even for an infant.
Say you have a grand parent buying 4 policies. That's 4 interviews. About 2 hours on the phone with settlers.
You could give them a much better deal and be done in 30 minutes or less.
who do you find is cheaper than settlers and the phone interview is great Imo it takes 10 mins instant approval and your done no faxing anything
