Whole Vs ROP Term Vs Term?

keatz85

New Member
12
Sold for a company that focused on DI, Acc, and CI. Sold a little bit of life here and there. Recently became independent and can do a lot more w/ life insurance now. Anyway, I definitely understand the difference between the 3 above but am having trouble knowing what's the best fit in different situations because I've heard so many different opinions on the topic. Some agents hate whole and only do term. Some only do whole and so on and so forth. So what's your opinion on the different types? Who would be the best prospect for each type and why?
 
Obviously, it depends of the specific need of the client that you're working with. It's like asking if blue paint is better than red paint. There is no answer unless you know the client and the situation.
 
Whole/Permanent- want or need a permanent death benefit.

Term - want temporary coverage or the budget does not allow permanent.

ROP- strictly want temporary coverage, but likes idea of getting premiums back. I run both non-ROP and ROP options and show them the effective rate of return. Sometimes it can be very competitive for a risk free, tax free return.
 
Whole/Permanent- want or need a permanent death benefit.

Term - want temporary coverage or the budget does not allow permanent.

ROP- strictly want temporary coverage, but likes idea of getting premiums back. I run both non-ROP and ROP options and show them the effective rate of return. Sometimes it can be very competitive for a risk free, tax free return.

I just wanted to say that with ROP you really have to watch out for how that is structured in the contract. Most that I have seen only give you a percentage of the premium back if cancelled before the full contract length i.e. 30 years, 20 years etc.

I doubt most consumers are aware of this little hitch.
 
I just wanted to say that with ROP you really have to watch out for how that is structured in the contract. Most that I have seen only give you a percentage of the premium back if cancelled before the full contract length i.e. 30 years, 20 years etc.

I doubt most consumers are aware of this little hitch.

Why wouldn't consumers be aware of this? It's not a hitch, it's part of the contract.

Don't you explain policy provisions when you write insurance? I know I do.

And if SAI actually sold anything, he would also.

Rick
 
So basically just explain the pros and cons of each and let them decide? Currently that's what I'm doing so that works.
 
I usually do not present ROP unless someone is dead set on term only. Then I will show term, ROP, and no lapse UL in three columns and let them decide.
 
So basically just explain the pros and cons of each and let them decide? Currently that's what I'm doing so that works.

Then what value are you bringing to the table? If you can't make a recommendation based upon what they have told you during fact-finding, you didn't ask enough questions.
 
I just wanted to say that with ROP you really have to watch out for how that is structured in the contract. Most that I have seen only give you a percentage of the premium back if cancelled before the full contract length i.e. 30 years, 20 years etc.

I doubt most consumers are aware of this little hitch.

Most? Show me a carrier that offers anything other than that on ROP.
 
I just wanted to say that with ROP you really have to watch out for how that is structured in the contract. Most that I have seen only give you a percentage of the premium back if cancelled before the full contract length i.e. 30 years, 20 years etc.

I doubt most consumers are aware of this little hitch.

Unlike Whole life or UL?

..............
 
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