Insurance Agent Forum

[Winter]

What is the lay of the land out there as far as term policies that allow you to increase benefit amount at a future date without additional underwriting (not talking conversion to whole life, just increase in face amount or term length)

I am not familiar with this type of policy but am trying to make sense of what clients already have or say that they have. I gather that Primerica has some type of policy like that and I spoke briefly with a prospect the other day who says that he has a John Hancock policy of some sort that is like that. I am trying to sort out what is real and what is misunderstanding. Who has policies like this? For the most part, when I hear about an increase without underwriting it does not compute, but then again there is some wacked out overpriced stuff over in the Primerica world and elsewhere that I don't know anything about.

Comments please.

Winter

[bluemarlin08]

I am familiar with the Primerica policy, met with a prospect today that had one. It is a good deal if the client has developed a health problem that would cause him to be uninsurable or highly rated. Otherwise it is a sucker bet, overpriced, better to replace with quality A+ policy. As I am sure you are aware, if you can buy without U/W they price it accordingly.

[David C]

I've seen a few companies offering this. My market is young married couples so I strive to get them to buy all they need/or may need initially.

It has not been a deal closer in any case I've worked.

Ohio National offers it, depending on your age you may have as many as six opportunities to raise the face amount, as long as you do it before your 40th birthday.