Do You Have Any Serial Life Insurance Enrollees?

[bill3173]

I have a long time client that is widowed, received two retirement pensions and ss, with retiree health insurance. I met her 8 years ago and wrote her a $100K mortgage term 10 yrs, that's all she would take.

Since that time, she has purchased and dropped $700K of GULs (2) and (1) $250K term. After speaking with her yesterday, it seems that she is interested in a new large face life policy, she hasn't decided the amount.

Any of you ever had a client like this, buying and dropping policies of this type every couple of years?

 

[walthamny]

Yes, I have had few of them. If she bought a GUL and dropped in year 3, the insurance company is very happy. Because they just sold you a 2 year term at 10 times the going rate and you lapsed it She would have been getting a term policy. I had people drop policy because the legacy want went away after few family fights and returned back after a new grandchild. It all depends on the need and why they are buying the insurance. If you are independent, you can put her with a new company and get paid again. When I was at NYL, they would not pay anything for replacing a lapsed policy.