Converting a John Hancock Policy

[insurancequestion]

Is there anything one should know about converting a John Hancock policy from term to one of the permanent whole life products?
Is it pretty simple..just have the client fill out the "convertibility applications" and that's it? A couple of weeks late get paid a commission?

 

[somarco]

Is there anything one should know about converting a John Hancock policy from term to one of the permanent whole life products?
Is it pretty simple..just have the client fill out the "convertibility applications" and that's it? A couple of weeks late get paid a commission?

I presume you have already read the policy to make sure it is convertible and the conversion period has not expired. Not jerking your chain, just stating the obvious that is sometimes overlooked.

 

[insurancequestion]

appreciate it! That is what I needed to hear, I am just over thinking it. Thanks

 

[Allen Trent]

appreciate it! That is what I needed to hear, I am just over thinking it. Thanks

You need to confirm the conversion expiration is in the future, not the past.

You need to contact JH to ask what products they allow a person to convert to. Some carriers allow conversion to all permanent policies they have for sale to the general public today, but others only allow them to convert to specific less desirable products for conversion only.

Also ask JH if the client can convert to a base Permanent & bring along the balance of the term as a base insured term rider & if so is there a minimum permanent size or ratio of base to BITR rider.

Lastly, if the client is only converting a portion of the existing term to permanent, are they allowed to retain the balance of term & continue paying the pro-rata premium for the balance of term coverage still left that isnt being converted or is it an all or nothing conversion offer

the conversion definition in the policy contract may not spell out these items & might only state "it can be converted by this date to a permanent product we offer at the time of conversion"

 

[WinoBlues]

appreciate it! That is what I needed to hear, I am just over thinking it. Thanks

No, you are not.

The other guys gave some things to think about.
I will add. Contact JH commissions and contracting and ask them if you convert it do _you_ get paid? Is there a different writing agent? Is he still active. If so you could write this and he gets the check. Trust me that sucks! What is the comp rate on a conversion?
Also do you get new first-year comp? Also, if they drop the balance of the term is that premium deducted from the new policies commissionable premium?

 

[somarco]

Obviously my answer was too simplistic. In my haste to nudge the OP into digging deeper before investing too much time, I failed to flesh out the potential challenges.

Thanks to @Allen Trent and @WinoBlues for tag-teaming this thread. This forum has some experienced agents that willingly offer salient advice.

 

[WinoBlues]

Obviously my answer was too simplistic. In my haste to nudge the OP into digging deeper before investing too much time, I failed to flesh out the potential challenges.

Thanks to @Allen Trent and @WinoBlues for tag-teaming this thread. This forum has some experienced agents that willingly offer salient advice.

 

[Allen Trent]

salient advice

I dont know who raised you, but I am deeply offended you would use such bigoted & hateful language to describe me. My apologies in advance if I am over-reacting & mis-understanding what salient means. Just feeling left out lately from not being offended

 

[somarco]

I dont know who raised you, but I am deeply offended you would use such bigoted & hateful language to describe me. My apologies in advance if I am over-reacting & mis-understanding what salient means. Just feeling left out lately from not being offended

Salient is one of those words that can mean whatever you want.

Consider the word "bad" for instance.

When I was young if my mother told me I was bad I could expect to be punished. A few years later bad meant good. Now bad means you better not f*ck with me.

 

[Allen Trent]

Salient is one of those words that can mean whatever you want.

Consider the word "bad" for instance.

When I was young if my mother told me I was bad I could expect to be punished. A few years later bad meant good. Now bad means you better not f*ck with me.

LOL-- I was thinking Soylent & the clean definition of that is fake & the unclean is super, super bad--dont look it up in your urban dictionary online