Feedback on Equis Financial?

[ExProgrammer]

At one point in the past there was such a thing as MP insurance. It was basically decreasing term. Most every company I know of has gotten away from it and now most all term is level. MP really has become a marketing term now.

Why did they get away from it? Because they could make more with level term? It seems like there should be a good demand for it for actually paying off a mortgage or other reasons why people need less money as their kids get older and their investments grow, etc. At least that's what's "supposed" to happen.

 

[goillini52]

Why did they get away from it? Because they could make more with level term? It seems like there should be a good demand for it for actually paying off a mortgage or other reasons why people need less money as their kids get older and their investments grow, etc. At least that's what's "supposed" to happen.

As I recall, the premium stayed the same even though the Face Amount kept going down. Would you want to keep paying the same premium when you had little benefit the last few years? Nobody else did either, and I believe that's why you don't see it any more.

 

[ExProgrammer]

As I recall, the premium stayed the same even though the Face Amount kept going down. Would you want to keep paying the same premium when you had little benefit the last few years? Nobody else did either, and I believe that's why you don't see it any more.

No, but it would make sense if it was cheaper to start with. Like if you could get a policy that went from being worth $500,000 down to $100,000 over 20 years that was the same price as one that stayed at $250,000 for 20 years. Something like that.

 

[jdeasy]

No, but it would make sense if it was cheaper to start with. Like if you could get a policy that went from being worth $500,000 down to $100,000 over 20 years that was the same price as one that stayed at $250,000 for 20 years. Something like that.

It was cheaper than level term but not enough to be worth it for the person that thought it out.

Most people bought that crap from the bank and just signed for it without paying attention.

 

[FinalExpenseDojo.com]

Americo has a product like y'all are speaking of. Decreasing Term.

The Mortgage protection industry is attractive because of the advanced sales potential (IUL & Annuity). Not sure why so many IMO are flooding that market within the last 5 years, though. Such a small demographic.

 

[Tahoe Ray]

No, but it would make sense if it was cheaper to start with. Like if you could get a policy that went from being worth $500,000 down to $100,000 over 20 years that was the same price as one that stayed at $250,000 for 20 years. Something like that.

You can somewhat achieve this effect by laddering policies.

 

[ExProgrammer]

You can somewhat achieve this effect by laddering policies.

That's true. I've thought of doing a ladder deal for myself since my term policy will expire in just over 3 years.

 

[WinoBlues]

Why did they get away from it? Because they could make more with level term? It seems like there should be a good demand for it for actually paying off a mortgage or other reasons why people need less money as their kids get older and their investments grow, etc. At least that's what's "supposed" to happen.

Primerica


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[VolAgent]

Why did they get away from it? Because they could make more with level term? It seems like there should be a good demand for it for actually paying off a mortgage or other reasons why people need less money as their kids get older and their investments grow, etc. At least that's what's "supposed" to happen.

Here is the thing, just because your mortgage balance is going down doesn't mean your need for insurance is going down.

Just talked to a 78 year old. His 15 year term expires very soon. He is dealing with massive sticker shock over the price of new coverage. Still wants a term, although I doubt he will be able to get it between health and limited options.

The reality is, a 50 year old almost certainly has much more need for life insurance than a 30 year old. Between typically higher income and more responsibility for others it is often quite a bit higher.

 

[wln417]

People refinance their mortgages and take out cash, so their balances don't necessarily decrease.