Does Anyone Sell Term Insurance Anymore?

[VolAgent]

I may need you to explain this further. Let's say I write a 30 year term for $1 million on a 40yr old male with young children. You're saying that somewhere between year 20-25 the policyholder will want to convert/rewrite? what would be an affordable product at his age and what would his needs be for life insurance? would he want more term, whole life or just basic final expense? I know there are other products like LTC, annuities, but I was wondering if you were still talking mainly about converting to another life policy.

thanks

tommy

It depends. But odds are, he's going to wake up sometime after age 60 and realize he still needs insurance beyond age 70. You just want to still be in the picture so you can be the one to sell it.

 

[WinoBlues]

I may need you to explain this further. Let's say I write a 30 year term for $1 million on a 40yr old male with young children. You're saying that somewhere between year 20-25 the policyholder will want to convert/rewrite? what would be an affordable product at his age and what would his needs be for life insurance? would he want more term, whole life or just basic final expense? I know there are other products like LTC, annuities, but I was wondering if you were still talking mainly about converting to another life policy.

thanks

tommy

A man at age 40 with kids at home thinks differently than a man age 60/65. Add empty nest, retirement and funerals to the mix and you will find that you have a completely different client.

Also the affordable number at age 40 is different than at age 65. Same with the perception of value.

What I have found is, as people get closer to the expiration date of their term, policy they get more open to looking at their long term wants and needs.

I try to keep in touch with my clients so they know it is coming. I also keep copies of both the original illustration and the premium schedule from the policy. I send these to them with the new premium highlighted. That huge number tends to motivate them to do something. Many times the conversion privilege expires before the term guarantees. That is an other motivator.

What do they convert to? Sometimes to nothing. They cancel all their coverage. But many times they want to keep something. If they are unhealthy, to whatever they can, at a lower face amount. If healthy enough we shop them out for WL, GUL or more Term.

Dave Ramsey aside. Most people still have debt at age 65. Pension Max is also a concern. Or simply final expenses, SS income replacement or a little something "just in case". Women seem to be more in tune to the need for coverage in the older years than men.

The main thing is what Vol said. You want to be the guy there when they they decide to do something. You want to get several of those "freeby" cases a month. It cost next to nothing to make a call every couple years or drop a note in the mail. Even if they do not call you on the term policy you may get a referral. Or you could be like most current agents and just sell them and leave them. I love those guys. The old style agents serviced their clients and usually had clients several generations deep in a family. Those houses are much harder to get into.

Sorry for rambling , Lee