Conversion Question Transamerica

Lakshmi

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I have a few calls into TA, but main guy who can supposedly help is out of town until the 23rd. Got a call back from a marketing lady in another state, but she said she could not help me because it's an older policy and she simply can't help. Then, she gave me another number to call, and unfortunately it was a disconnected number. Ugh. Nice marketing help.

This is about a $100,000 20 yr. term sold in 2006 to a 34 yr. old female (at the time it was standard to offer this in with a health insurance "package").

She was diagnosed with ovarian cancer in 2010 (TA doesn't know this yet). She's still receiving treatment. So that obviously eliminates the possibility of just moving her into a completely different plan.

She called and asked about a conversion to increase that DB to $250,000 and do a conversion to WL (not my forte, or even my thing currently, but I'm trying to learn more). I'm assuming she's concerned about passing away and now feels she needs more coverage, as she is the "breadwinner"--she also had another child in 2009, another reason she wants to increase.

This policy is eligible for conversion without showing insurability.

Is it possible to increase the DB, or will she be limited to $100,000?--which for her purposes might be the only real benefit (if she passes away), although she has a decent chance of survival.

Anyone know how I would quote this??...this is a Transamerica older policy that falls under Monumental, and a LifePro, now referred to as Transamerica Premiere. Without any knowledge yet of how to do this, I'm leaning toward just quoting a Trans Ace? lol...

Also, this could get mildly irritating, as the client is bringing her financial advisor into the convo we will soon have....he is who is advising her to make a conversion, maybe rightfully so, maybe not, I am not sure yet.

Any sound help would be mucho appreciated. Regrettably, I'm not getting much help from the company...just a lowly LI agent here...Oy!:nah:
 
Her conversion options will be determined by the policy. Knowing Transamerica, they are likely to be limited to a current assumption UL with high charges and low interest. Also, it is extremely unlikely she will be able to increase coverage without new underwriting.

Forget about quoting anything right now. You need to get a hold of the policy and read the conversion clause to see what it allows. Hopefully it says any permanent policy offered by the company, but likely it does not. Either way, you are going to have to ask TA what options are allowed.
 
conversion options are a crappy UL or possibly TransAce CV. if her agent is with WFG then IUL is available. no increase without underwriting. the policy will say conversion "to any currently available product". that's where they get you.
 
conversion options are a crappy UL or possibly TransAce CV. if her agent is with WFG then IUL is available. no increase without underwriting. the policy will say conversion "to any currently available product". that's where they get you.

To any currently available product is great. Then you can have any permanent product. I doubt that is what it says.
 
If TA still had a GUL, it'd be an easy lock for the client to do the conversion in my opinion. Current assumption ULs and IULs can be confusing for clients.

Conversions are limited to the face amount of the policy, but no medical underwriting needed. New policy is based on age at time of conversion, but keeps risk class of the original policy. Can't increase the face amount via a conversion and she'd be uninsurable for new coverage while cancer treatment is ongoing (she'd need at least 2-5 years from treatment completion date with no reoccurrences for a new policy to supplement the existing one - which would still very likely be table-rated).

First thing you've got to do though is see what the contract states for conversions - do you have a copy of the policy? That's your key to running any quotes. You've got to know what it can convert to before you can convert it.
 
well more specifically "that we make available at the date of the request" per their contract language.

Yeah, that is TA. Basically language that says, we get to pick. It has always been a crappy UL for as long as I've known them. I doubt it will change. Generally they give you 5 years to convert to anything, after that a product of their choosing.
 
That became even more concerning when they pulled the TransAce product out of the blue. When that happened, all projections and apps came to a screeching halt - even the apps that were already in underwriting. The question then becomes, will other conversion products be pulled too? They did pull the Trendsetter Express a few months ago as well...
 
Thank you all so much. I'm still trying to get someone on the phone who can help me there. Talked to two people since I've posted here, no go. Just sent to VM.

Although, I think I have my answer. No increase in DB makes sense. That's what I would think. Only thing that confused me is I saw in another thread of a possibility with increase to 1 mil, but still didn't make any sense.

Another prime example of not having enough coverage--and, then becoming uninsurable. I've annually called her with options for a higher DB. She opted no on more coverage.

These cases leave a bad taste in my mouth...thanks all for the help. I need to stress to clients more and more the importance of having enough coverage.

This one will go down in the mental reps of examples to provide when pitching on appointments.

Thanks again.

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It still will be best for her to convert I think in the possibility she survives. But, I'm sure it'll be an expensive move. This policy doesn't increase until I think 2026, at which point I think the client said from 22 a month to 122, but like someone said above, I need to get ahold of the policy. That's the plan. Hmmmm....thinking out loud here now.

Thanks again for the help. I learn a lot from this group.
 
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The vital consideration with conversions is the fact that she gets to keep the risk class from the existing policy. The rates just get calculated based on her current age.

If she has preferred rates on it, then I would highly highly highly suggest the conversion. She'll never be able to get it again with cancer history. Maybe in 10 years from the date treatment is completed, she could get standard. Preferred is just a no go for new coverage.
 
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