Healthy older people

[tippingpoint]

When selling life insurance and you come across say a 65 year old who is healthy, why not sell them a 10 year convertible term policy vs a typical final expense whole life policy? I know it could take months to get approved and paid but other than getting paid in 1 week vs 2 months, what is your experienced train of thought when dealing with people maybe 55-65 who may be able to go either way?

 

[adjusterjack]

If the term life is medically underwritten and the FE is guaranteed issue, FE should win hands down.

Because there are no 65 year olds that don't have something wrong with them that might get them rated or disqualified, no matter how healthy they say they are, and you'll have wasted a lot of time on it.

Seems like common sense to me and I haven't sold life insurance for 50 years.

 

[axeman462]

When selling life insurance and you come across say a 65 year old who is healthy, why not sell them a 10 year convertible term policy vs a typical final expense whole life policy? I know it could take months to get approved and paid but other than getting paid in 1 week vs 2 months, what is your experienced train of thought when dealing with people maybe 55-65 who may be able to go either way?

Because the two products are for two different goals.

Term is to protect against a temporary risk, where you know there is a definite end. Such as a mortgage.

Whole life is to provide a legacy or pay for final expenses. You don't know when someone will die, therefore using a whole life is proper. If you use a term, then what happens if the client lives longer than 10 years? A new policy will be needed.

If the DB is the issue, and they are healthy, then write a fully UW policy and shoot for a larger DB

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EDIT
Just noticed you said Convertible term.
I've never actually used that strategy before, but I did look into it years ago, and if memory serves me right, it's more expensive in the long run for the client, as the premium gets locked in at a much higher age.