For new agents what is the definition of a good UL and a bad UL.
Am I Doing the Right Thing ?
- Thread starter Mll0016
- Start date
For new agents what is the definition of a good UL and a bad UL.
- 10,340
Asking FE agents if your client should have a FE policy is like asking a stock broker if you should own stocks. Of course they are going to say that the client is best of with FE.
If you honestly want to learn about Life Insurance I suggest that you post your question in the life insurance section and not the FE section. You need to understand that FE is a niche type of life insurance. It is usually sold on a Simplified Issue or Guarantee Issue basis. It is usually sold in small amounts. It is usually a Non-Participating Policy, meaning it does not increase the Death Benefit with dividends. It is usually marketed to lower income families or individuals.
You mention "investing premiums elsewhere". That is not a FE policy lingo. Or at least it shouldnt be.
Participating policies that receive dividends, interest crediting, index crediting, or market returns; all would be used if the client wants to have a strong Cash Value increase. A FE policy should never be used for that.
But you have to find a persons need and provide a solution for that need. Do they need a permanent Death Benefit? How much do they need? Will they need more in the future? What premiums are they comfortable with to fix this need?
The way most non-FE agents sell Life Insurance is that we do not go into a situation with a particular product in mind. We go into the situation, look at what they have and what they need, and then recommend one or a combination of products (out of many different types of life insurance products including Par WL, Non Par WL, Fully underwritten WL, SI WL, GI WL, UL, GUL, IUL, VUL, SUL, SGUL, SIUL, SVUL, Term, SI Term, ROP Term, Decreasing DB Term)
If they are in a financial position to where cash value build up would be a benefit then you can address that AFTER you answer the questions above.
If you want to learn how life insurance works and not just FE insurance, look in the life insurance section of the forum.
If the people you are working with are selling Level Death Benefit policies on a Simplified Issue or Guaranteed Issue basis, and are pitching them as "investments", then you need to run like hell starting tomorrow.
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GULs should usually not be touched. As long as the premium is paid on time and the premium is the "Guaranteed Premium" amount, then it will last for their entire life guaranteed as long as they do not touch the cash value. (GULs are not designed for the client to use the CV)
For all other types of UL you need to look at the original illustration (usually in the policy). And also call the company and get what is called an "inforce illustration".
Without the inforce illustration there is not way to know if the policy is good or bad. If the inforce shows the policy lasting until maturity, then it is most likely a perfectly good policy that should be left alone. If it shows the policy expiring before maturity, then you have something to fix. They either need to increase payments or look at an alternative.
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- 25,010
They need to see the last annual report and preferably an inforce. GUL or an accumulator UL. And of course know how to read them beyond just trying to replace them. Such as Primerica agent understands whole life or UL enough to replace them but not qualified enough to sell one correctly.
Edit: what Tyler said.
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- 10,340
Get an inforce illustration from the carrier and see how long the policy lasts. If it lasts to maturity generally speaking it is a good policy. If not then it either needs more premiums, needs the DB lowered, or needs to be replaced.
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Yeah, its always great when the Primerica guy replaces a perfectly fine WL with a 20 year term that is only convertible for 5 years. It is usually the agents uncle or some other family member that it happens to... lol.
Do you really believe that ALL FE agents know nothing about other types of life insurance?
I don't force ALL clients into an FE policy because I have the knowledge and know-how of other avenues. I wrote over 16K this week in FE AP. Over 5K of it was referred to me by a Liberty Mutual "life insurance agent" that tried to FORCE the clients in a UL unsuccessfully. He didn't have the know-how or solution to help these particular clients the way I did.
Do you think that there are agents in the "life insurance section" right now that try and force their clients into FU plans when they shouldn't behind closed doors?
Looks to me like the OP got the answer to his questions right here in the "lowly FE section"
- 25,010
Do you really believe that ALL FE agents know nothing about other types of life insurance?
I don't force ALL clients into an FE policy because I have the knowledge and know-how of other avenues. I wrote over 16K this week in FE AP. Over 5K of it was referred to me by a Liberty Mutual "life insurance agent" that tried to FORCE the clients in a UL unsuccessfully. He didn't have the know-how or solution to help these particular clients the way I did.
Do you think that there are agents in the "life insurance section" right now that try and force their clients into FU plans when they shouldn't behind closed doors?
Looks to me like the OP got the answer to his questions right here in the "lowly FE section"
Your background is more unique than a lot of agents that have primarily focused on one type of insurance. Until the last year or so a lot of agents here posted a lot of misinformation on UL. Generalizing about them.
- 10,340
Do you really believe that ALL FE agents know nothing about other types of life insurance?
I don't force ALL clients into an FE policy because I have the knowledge and know-how of other avenues. I wrote over 16K this week in FE AP. Over 5K of it was referred to me by a Liberty Mutual "life insurance agent" that tried to FORCE the clients in a UL unsuccessfully. He didn't have the know-how or solution to help these particular clients the way I did.
Do you think that there are agents in the "life insurance section" right now that try and force their clients into FU plans when they shouldn't behind closed doors?
Looks to me like the OP got the answer to his questions right here in the "lowly FE section"
Was my statement a generalization? Yes. But it was made after 6 years of being on this forum and knowing what info is in each section.
But I do not think that you would disagree that there is a whole lot more info about UL policies and non-FE policies in the Life Insurance section vs. the FE section.
And in my decade of selling life insurance I have replaced a whole lot more FE policies that should have been FU, vs. FU that should have been FE. I have come across countless people that were more than happy to do a medical exam and wait a month so that they could double their Death Benefit for what they are already paying. But at the same time I have also replaced a lot of crashing ULs with WL or GUL.
Sure green agents or stupid agents who sell FU try to write people that never have a chance. But they learn pretty quickly to prescreen or they will be out of business in a year.
And you are correct that you initially answered the question properly. But others disagreed. If he wants to know if he did the right thing, then he needs to learn about UL. The best place in this forum to do that is the Life Insurance section. But I think that the OP also has his products mixed up... either that or his office is trying to pitch FE for building CV... idk. He obviously doesnt know what he doesnt know and should probably read through a few pages of both the life and fe sections.
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Exactly. People who have been around this forum more than 2 years remember how whenever UL was brought up you would get 15 comments about how it was the devil and that no matter what it needs to be replaced.
Either way. If the OP wants to learn about UL there is more info in the Life Section vs. this one. It is not a judgement, it just is what it is.
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- 16,905
Not all UL is bad. I've seen good ones that are on track. But it's pretty rare to be running FE leads and run across the good properly funded ones. We run across the really bad ones. And the people don't understand why their rate is increasing or why their cash is depleted because they thought they bought whole-life.
UL has it's place but it's going to be to a little more savvy prospect than the typical retired broke at age 60 minded person. Or anyone who lives paycheck to paycheck.
UL has it's place but it's going to be to a little more savvy prospect than the typical retired broke at age 60 minded person. Or anyone who lives paycheck to paycheck.
- 3,764
over time, your instinct will take over, and will tell you when a replacement is appropriate and when it isn't.
Even though your "upline" or " IMO " says it is, it may not be.
This is what separates the "really good" agents, and the ones who just repeat what their marketer's tell them.
Always ask yourself, would you recommend yoru proposal to a family member , the same way you would to a prospect. ( assuming you do not dislike this family member)
Even though your "upline" or " IMO " says it is, it may not be.
This is what separates the "really good" agents, and the ones who just repeat what their marketer's tell them.
Always ask yourself, would you recommend yoru proposal to a family member , the same way you would to a prospect. ( assuming you do not dislike this family member)
- 25,010
Newby, you are another example of a more rounded agent. (no husky jokes) You sell FE, PreNeed, annuities, MS and I assume GUL.
And besides you are said not to be a FE agent
