Who Do You Like for "ease of Doing Business & Best Comp" on Term?

[Larry Tew]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

Unless the disability was to the extent that you know for certain you are not going back to work for 4+ years, then I would not convert any more than what the client could afford to pay for under normal times.

What happens when they are back to work and cant afford the $5K premium? They have to drop their LI policy is what happens; and what happens if they are no longer insurable???....

You would be taking a very large risk unless it was certain that the disability was going to be lasting.

Yes you have the CV accumulated, but at that point, it alone will not be enough to continue the policy.
Yes you can cash it out, but then you have no more LI. If your still insurable after the disability then your looking at new rates new underwriting, etc, etc.

My point is that I don't believe that is how it works. I thought about your points but didn't include them in my scenario. Agan, I can't see how an insurance company would allow someone on waiver to just flip a switch and convert during disability and begin to accrue cash value at the pure expense of the company. Since we all aren't in consensus, I will make a call or 2 Monday.

 

[VolAgent]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

My point is that I don't believe that is how it works. I thought about your points but didn't include them in my scenario. Agan, I can't see how an insurance company would allow someone on waiver to just flip a switch and convert during disability and begin to accrue cash value at the pure expense of the company. Since we all aren't in consensus, I will make a call or 2 Monday.

I just checked Lincoln's, they convert the waiver to a wavier of monthly deduction at conversion if disabled. So, you can choose, but might as well go with a GUL.

As I recall at Mass, if you initiated the conversion during conversion period, then you can convert to any product. However, if it is done by the company at the end of the level term, they convert it to a Legacy 100. Perhaps someone can shed more light on this.

 

[scagnt83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

I wasnt really affirming that you could do that with other companies, merely just pointing out the flaws in the thought process.
I understand what you where saying.

I knew that there are some companies that will let you convert while disabled, but I always thought that the conversion amount was capped at a fairly low amount.

Also, I was always told that you could not design an overfunded policy when converting while on DI rider.

Take LFG for example, they only let you do Waiver of Monthly deduction, which is basically minimally funding a policy just to keep it barely in force (I dont know this as a fact, just stating what was said above)

Actually here is LFG's statement on the spec contract for the term WP rider:
" Effect on Conversion to a Permanent Plan of Life Insurance You will have access to a waiver benefit such as Waiver of Premium Benefit, Waiver of Monthly Deduction or another waiver rider as made available by Us on the new policy, as part of the term conversion.
The waiver rider offered for term conversions and the issue guidelines for the waiver will be based on the company's guidelines at the time of conversion and are subject to change at the company's option.
Such guidelines will be applied on a basis that is not unfairly discriminatory.
The disability waiver benefit will be made available to the Insured without regard to disability status at the time of conversion.
If the Insured has a Total Disability at the time of conversion, has an approved claim under this Rider and has met the company's issue guidelines, the premiums or monthly deductions for the new policy will be waived according to the specifications of the waiver rider offered for term conversions as if the Rider had been in force at the start of the disability."


So basically it up to "current" company guidlines... I will my internal guy at LFG and find out specifics on Monday morning...

 

[FinalExpenseDojo.com]

I mainly do final expense but the rare term cases I sell are with Phoenix, LFG, and RNA. All 3 are instant decision via eapp (non-medical fully underwritten) & pay pretty good comp.

Phoenix & LFG include all 3 living benefits which are Critical Illness, Cronic Illness/LTC, & Accelerated Death.