damadcrapper
Super Genius
- 157
Do we have any fans of adding riders to FE policies? AD&D, Grandchild, etc.? Who has the best and which make sense?
FE Policy Riders
- Thread starter damadcrapper
- Start date
Grandchild/Greatgrandchild riders like the one Columbian has can help increase the persistency, especially if the agent that follows you in the door can't include the GKs. I have never been a big fan of AD because a lot of them terminate at 80 but again, Columbian's remains until age 100. The company has it faults with their product (as far as underwriting and pricing) but they do the riders right.
- 5,778
I am a user of riders on FE policies. Calling me a fan might be overstepping how I see them.
They offer 2 things: Value added and Value added.
An AD rider offers 2X the coverage for much less than twice the cost. That said, I DO NOT think it proper to not explain how it works, natural vs. accidental death. Let the client decide if they think that it is of value to them. I just had a guy Monday tell me (after I explained how it worked) that he did not want the additional rider. That happens only rarely.
A grandchild rider is gold in my estimation as far as the potential to entice a would be prospect to purchase as well as it helps to solidify a sale in many cases. Many grandparents very much appreciate that fact that they can cover their grandchildren, to them it is a value added, they get more than just something for themselves. (I will add that in some of my areas, many grandparents are more worried their grandchildren will go before them, usually of unnatural causes.)
These are the two riders I use. I use them on any carrier that offers them.
They offer 2 things: Value added and Value added.
An AD rider offers 2X the coverage for much less than twice the cost. That said, I DO NOT think it proper to not explain how it works, natural vs. accidental death. Let the client decide if they think that it is of value to them. I just had a guy Monday tell me (after I explained how it worked) that he did not want the additional rider. That happens only rarely.
A grandchild rider is gold in my estimation as far as the potential to entice a would be prospect to purchase as well as it helps to solidify a sale in many cases. Many grandparents very much appreciate that fact that they can cover their grandchildren, to them it is a value added, they get more than just something for themselves. (I will add that in some of my areas, many grandparents are more worried their grandchildren will go before them, usually of unnatural causes.)
These are the two riders I use. I use them on any carrier that offers them.
- 18,989
I am not a rider fan. I never add child or grandchild riders. And maybe only 2 or 3 times a year do I add AD&D.
I am a believer in selling child policies. And I write quite a few of those.
A policy in their name with their name on it is far superior to a rider that expires.
And I’m a believer in limited pay for those kids too. “do you want to give them a bill at age 20 or a paid up policy?”
Never once had someone say they prefer to give them a bill.
As far as persistency, I’ll put mine up against anyone depending on child riders.
Nor have I ever had a problem replacing a policy with riders with one that doesn’t.
I am a believer in selling child policies. And I write quite a few of those.
A policy in their name with their name on it is far superior to a rider that expires.
And I’m a believer in limited pay for those kids too. “do you want to give them a bill at age 20 or a paid up policy?”
Never once had someone say they prefer to give them a bill.
As far as persistency, I’ll put mine up against anyone depending on child riders.
Nor have I ever had a problem replacing a policy with riders with one that doesn’t.
- 29,492
I like adding an ADR. For $12.50 a year you can double their benefit on a $10K policy if they die from an accident.
I also don't like adding the child riders, because at those young ages the premium's not much to get them their own policy.
I also don't like adding the child riders, because at those young ages the premium's not much to get them their own policy.
Especially if you use United American. However, the thing that makes Columbian's rider a little easier than many is you only have tp have the child's name and age. No SS number or DOB
- 6,466
As one who has benefited from it, I appreciate the separate policy idea. In my case it was my father rather than grandfather. $3K (paid up) is not much in today's terms but the policy was a nice surprise when I got it.
I sell a lot of child policys . The problem with paid up is if they have 3-5 grandkids it’s too expensive.
- 18,989
I don't have a problem with that. If it's too expensive they don't need to do it. I tell people to take care of you first. We'' take care of others down the road.
But I will do life pays in some instances. I have a client paying $25/mo for 4 policies on her grandkids.
