Need Some help Quick Please!! TIA

[kcinsc]

ok basically woman currently has UL policy for 100k benefit but will drop to 50k in a few years to extend coverage and based on her latest guaranteed assumptions will run out of cash value and benefit at age 83 based on current premium. I got her signed up for a whole life with 35k death benefit which projects a cash value of $20000 at age 83 at same premium shes paying now. Anyway she calls today and wants to cancel because the other company and agent are telling her to look at the other column which clearly states non guarananteed assupmtions and that her policy wont end up canceling at 83 and agent told her in his 30 years hes never seen one run out. I attatched her current illustrations and then the one I have offered her. Am I not helping her out and offering her a better value? What do the non guaranteed assumptions mean? And if I am giving her a better value what should I say to convince her not to cancel the whole life? Thanks Guys





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[HoosierLife]

This is probably going to be a hard one to save. This should have been something that you dealt with prior to the agent calling.

The projected assumptions are just that assumptions based off current interest rates. But all of that can change plus the company can increase the cost of insurance to whatever they want.

I asked Foresters how they determine the cost of insurance and after interpreting his marketing speak, it basically comes down to they will increase it to whatever figure they need to to be profitable.

Whenever you are comparing a whole life policy to a universal life you need to explain to them that the only thing that they can be sure of is the guaranteed column.

Then you need to get two illustrations. One illustration showing the client how much they will need to pay today to keep the policy in force until age 100 guaranteed and then another illustration showing how far the policy will go at the current payment. GUARANTEED!

If you have a copy of the policy you will usually have the second.

We sell guarantees. That's what you need to explain to the client.

 

[NewbieNewbie]

Get the illustration provided when the policy was first sold. Compare it to the current in force illustration and ask her if her policy has performed like she was told it would up to this point. Then ask her if she thinks that would change in the future

 

[kcinsc]

I tried my best but shes very skeptical and had multiple policies over the years. Thought she understood the value and then she talks to the company and agent again. I think there misleading her with these non guaranteed assumptions. If the non guaranteed scenerio actually played out wouldnt the whole life also follow those projections and the cash value be way more than guaranteed projections?

 

[HoosierLife]

I tried my best but shes very skeptical and had multiple policies over the years. Thought she understood the value and then she talks to the company and agent again. I think there misleading her with these non guaranteed assumptions. If the non guaranteed scenerio actually played out wouldnt the whole life also follow those projections and the cash value be way more than guaranteed projections?

No. There is a chance that the projected assumptions will turn out to be correct and if so the universal life policy will end up being better than your whole life policy.

The problem is is that its all an assumption.

You have to create a wedge between the old company/agent before you leave. Tell them that they are going to call and tell them what they're going to say to her.

The other agent wedged you.

 

[jdeasy]

They are selling pie in the sky. You are selling guarantees.

Tell her to just have them put those assumptions in writing as a guarantee and she's good to go. Failing that she's just buying that pie in the sky.

This goes back to her WHY. Why did she have you there? If she's happy with maybe then she should have left it alone.

If her why is guarantees then she should buy that.

 

[nfl72]

I do not know the ins and outs of a UL policy. What I normally do in a case like yours is google UL vs WL and you can show her thousands of cases where UL policies are completely bellyup after so many years. Unless of course they can afford to make double and triple payments!

Do the research before you go see her and print what you find so when you get there you can show her inn writing what can, could and in fact did happen with many UL policies in the past.

I also have shown them their current UL policy and have them start reading some of the jargon. They are damn near impossible to be able to read and understand what they are saying might happen.

 

[Todd King]

2 things that has already been said that you should pay very close attention to...

#1. Get her to look at the original illustration that was with the policy. I'll bet it will be different and not in her favor either.

#2. Tell her to get them to put that in writing if they are so adamant about it. There's no way they will, but that should tell her that they are feeding her a line of BS.

 

[rousemark]

ok basically woman currently has UL policy for 100k benefit but will drop to 50k in a few years to extend coverage and based on her latest guaranteed assumptions will run out of cash value and benefit at age 83 based on current premium. I got her signed up for a whole life with 35k death benefit which projects a cash value of $20000 at age 83 at same premium shes paying now. Anyway she calls today and wants to cancel because the other company and agent are telling her to look at the other column which clearly states non guaranteed assupmtions and that her policy wont end up canceling at 83 and agent told her in his 30 years hes never seen one run out. I attatched her current illustrations and then the one I have offered her. Am I not helping her out and offering her a better value? What do the non guaranteed assumptions mean? And if I am giving her a better value what should I say to convince her not to cancel the whole life? Thanks Guys

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First of all, the guaranteed assumptions cannot take place exactly as shown unless the company is currently charging maximum expenses and paying minimum interest because the GTD is assuming max cost and min interest from day 1. The projected values may or may not come to pass... could possibly be even more in the future if the company declares a higher interest rate or reduces expense sometime in the future. The only thing you can be sure of with a UL is that you can not be sure of anything other than the fact that the illustrations are probably 100% wrong when looking 20-30 years down the road.

As to whether you are doing a better job by reducing her coverage at the present time by 65% is debatable. One way to make a more honest comparison would be to have an in-force illustration run where the current coverage is immediately reduced to $35K and see how it runs.

As for an agent that has been in the business 30 years and has never seen a UL crash, he either hasn't been involved with very many UL clients or he is outright lying. So far I have never had one crash that I personally wrote but I never sold one at minimum premium but I have seen many that have crashed, especially when I worked with AGLA.

BTW, what are you proposing be done with the cash value in the current policy? If MoO has a SPWL rider you could roll it into that and enhance the DB you are showing.

 

[kcinsc]

Well I went by and at least have her reconsidering, shes so confused about the non guaranteed values and I told her not to even look at that column and if she wanted to guarantee a death benefit and access to cash during retirement years whole life is the only way. Her old agent claims he can get her a whole life with axa financial for 50k at 98 per month but with being on disablilty and medicated for depression and fibromyalgia SNL it the best rate I can offer.