Thoughts on Settlers 10 Pay Vs Term Insurance

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

Also look at ROPTerm as JD said "Term may be the answer and whole life may be the answer" Why not both?

Looks like you are using age 35 in your example. Probably parents with young kids at home.

ROP examples:

$100,000.00 20 year ROPTerm

Cincinnati = $44. @ Std, $32. @ Prfd

Pru = $55. @ Std, $38.@ Prfd

$100,000.00 for 30 years would be as little as $25.

You could/should add waiver of premium for very little also convertible child riders.

Also these have Guaranteed Face, Guaranteed Premiums, Guaranteed cash values.

I also like Louis's reduced paid up idea and the using Par Whole Life.
 
Wow this might have been the most informative and well thought out thread of the week. All while not burning into flames before page three. Bravo guys bravo!!!
 
Wow this might have been the most informative and well thought out thread of the week. All while not burning into flames before page three. Bravo guys bravo!!!

I forgot to add the the RDPDUP amount:

>>ROP examples:

>>$100,000.00 20 year ROPTerm

>>Cincinnati = $44. @ Std, $32. @ Prfd

35 Female ROP Bank Draft Premium: $33.97 (I added WP) Preferred, Face Amount: $100,000
Riders Included: WP, ABR

RdPdUp at year 20 =$24,700.00

Std = $33,800.00 RdPdUp @ $45.76 w/WP


Just wrote my first SI UoO TLE 30 year ROPTerm. 20 year old female, $50,000.00 for 30 years then $25,000.00+ RDPdUp. @ $21.

Many ways to do what we do.
 
Love Settlers
Love the 10 pay of children
Like the 20 pay on young adults
Love term on young families
 
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
You can sell them Guaranteed Renewable Term. You can also sell a Guaranteed Universal Life Policy.
 
You can sell them Guaranteed Renewable Term. You can also sell a Guaranteed Universal Life Policy.

Or you can sell them an earlier offering corn from a cartoon you peddle down the street ringing a bell.

What the are you talking about?

I will admit I have not seen been in the forums much lately, but, Dude?!?
 
Back
Top