Interest Rates and Return of Premium Term

[shooter]

Interest rates have moved up this year.
At what point, will the new, higher interest rates make ROP
Term a viable option again?

I liked the product for some clients.
Especially the products where you have the option
of taking a reduced paid-up policy with the return
of premium or taking the cash.

It isn't for everyone, nothing is.
When I run my Compulife there are just a few
companies still showing the product.

Illinois Mutual
Assurity Life
Cincinnati Life
Have the best pricing.
There wasn't any A+ companies showing up.

I don't have a way of knowing what the premium would be
if you used a WL and took a reduced paid-up face amount
that would equal the ROP Term.

That would be an interesting comparison to me.

Shooter

 

[Tahoe Ray]

Interest rates have moved up this year.
At what point, will the new, higher interest rates make ROP
Term a viable option again?

I liked the product for some clients.
Especially the products where you have the option
of taking a reduced paid-up policy with the return
of premium or taking the cash.

It isn't for everyone, nothing is.
When I run my Compulife there are just a few
companies still showing the product.

Illinois Mutual
Assurity Life
Cincinnati Life
Have the best pricing.
There wasn't any A+ companies showing up.

I don't have a way of knowing what the premium would be
if you used a WL and took a reduced paid-up face amount
that would equal the ROP Term.

That would be an interesting comparison to me.

Shooter

I know that you were interested in DI a while back. IM's ROP on DI is 7%+ for the quote that I ran yesterday.

I would hope that the term options catch up to that.

Keep in mind, WL will still be a multiple of even an ROP premium so ROP still holds a nice spot. A better comparison may be GUL w/ ROP. Those are out there too and are obviously much less costly than WL.

 

[shooter]

Ray thanks for the input.
I didn't know that you could get a GUL w/ ROP.
I guess I should have thought of that.

I had a DI policy for thirty years.
When I turned 65 I retired, so the policy ended.
I wish I had added ROP to that policy.
I am thankful that I never needed to use it just the same.

Now I itching to get back into production, not full time.
Money isn't an issue, thankfully.
Boredom is.

 

[Tahoe Ray]

Ray thanks for the input.
I didn't know that you could get a GUL w/ ROP.
I guess I should have thought of that.

I had a DI policy for thirty years.
When I turned 65 I retired, so the policy ended.
I wish I had added ROP to that policy.
I am thankful that I never needed to use it just the same.

Now I itching to get back into production, not full time.
Money isn't an issue, thankfully.
Boredom is.

So AIG, Pac Life, Nationwide and I'm sure others have it on their GUL. MoO has it on their indexed.

You should set up w/ and IMO that gives you winflex access. You don't need to be appointed with most carriers to access to their quoting software there. Be up front, tell them that you're unlikely to write a lot of cases and you just want fair comp for that. Tell them that you want to run all of your own cases and just want some case management help on submission (that's really the minimum expectation for a life IMO)

Report back if you're unsure what's fair and you'll have a lot of people chime in.

This will let you formulate a "package" that you can offer to prospective clients. Make sure that the problem already exists (maybe people who think insurance is a scam or it never pays) and then find a way to market to those people.

This job isn't difficult, but it certainly isn't easy. Finding people who need what you have to offer is 90% of the battle. ROP type products are hardly being marketed anymore. It may be a decent niche to explore.

 

[WinoBlues]

Especially the products where you have the option
of taking a reduced paid-up policy with the return
of premium or taking the cash.

The RdPdUp was the biggest selling point for me.

My ROPTERM was super sticky. I believe that is one of the factors that killed it with many carriers.