Is Term with Return of Premium Better Than Mortgage Protection Policies?

[IsellMN]

I'm a newbie and have been recruited by a few mortgage protection companies, but when I look at their quotes they seem high.

Wouldn't a regular term with ROP be a better choice? I talked to an AIG rep and his quote for a 35 yr old male, non smoker , 20 yr policy with ROP , $250K , was half of Americo's quote.

I know the commission on mortgage protection is very well and that is why a lot of people sell it.

What is the commission on a term product with ROP?

Thanks

 

[jboussea]

Define "mortgage protection" ..

typically MP is just regular term.. some might have riders on them .. striaght term should always be less than ROP TERM

 

[rousemark]

I'm a newbie and have been recruited by a few mortgage protection companies, but when I look at their quotes they seem high.

Wouldn't a regular term with ROP be a better choice? I talked to an AIG rep and his quote for a 35 yr old male, non smoker , 20 yr policy with ROP , $250K , was half of Americo's quote.

I know the commission on mortgage protection is very well and that is why a lot of people sell it.

What is the commission on a term product with ROP?

Thanks

I would assume that Americo's product is a Simplified Issue term like UHL and others.. If that be the case, that is the reason for the higher premiums.. AIG is a fully underwritten plan. There is not much difference when it comes to commission rates.

 

[johndf]

Remember one thing, commissions are great but focus on what's best for your client. You will make a lot more commission long term that way.

 

[jdeasy]

I'm a newbie and have been recruited by a few mortgage protection companies, but when I look at their quotes they seem high.

Wouldn't a regular term with ROP be a better choice? I talked to an AIG rep and his quote for a 35 yr old male, non smoker , 20 yr policy with ROP , $250K , was half of Americo's quote.

I know the commission on mortgage protection is very well and that is why a lot of people sell it.

What is the commission on a term product with ROP?

Thanks

Guess what? It's the same thing!!!

 

[TwiLight]

And then there is GUL with a guaranteed 100% cash back option in year 20 and 25.

AIG has one, but is fully underwritten, ANICO has the best, IMHO, because it offers non-med to $250k and accelerated underwriting to $1m. ANICO just has better and faster underwiting.

 

[IsellMN]

Thanks for the responses - I appreciate it.

So I know AIG is fully underwritten, but should have the better pricing then.

Anyone have experience with AIG ? How long does it take to get an application through underwriting? Also what is the typical commission with AIG?

Is ANICO that much more expensive?

I guess if you're working with someone that is healthy and young a fully underwritten policy would be best.

I read on another post that a CI rider is popular with a lot of buyers.

I just know that most companies in my area that offer mortgage protection ( term with ROP) use Americo and I think their rates are pretty high. I just want to offer a better product at a better price. Thanks in advance.