Insurance Agent Forum

[Kita]

Anyone know if there is an insurance carrier in CT that sells term insurance (10/20/30) having less than $50,000 coverage (e.g. $25000)?

Anyone aware of a carrier in CT that offers term life coverage under $50k?

Thanks

[pomfin]

Originally Posted by Kita

Anyone know if there is an insurance carrier in CT that sells term insurance (10/20/30) having less than $50,000 coverage (e.g. $25000)?

Anyone aware of a carrier in CT that offers term life coverage under $50k?

Thanks

Is it worth writing a term policy for 25000 for the insurance company and agent? You can find plenty of UL/WL for that.

[GreenSky]

Choose Fidelity or Assurity and include ROP. Premium still affordable, easy issue, and you will still make a few bucks.

While $25K is a bit small, I'm targeting people who want a smaller amount because no one else does.

Rick

[Norwayguy]

Originally Posted by Kita

Anyone know if there is an insurance carrier in CT that sells term insurance (10/20/30) having less than $50,000 coverage (e.g. $25000)?

Anyone aware of a carrier in CT that offers term life coverage under $50k?

Thanks

I haven't checked if they do business in the state but Western Reserve goes down to $25K on their term products....I have only used it in replacement situations replacing equally small term policies from primerica.

[insurancemet]

For such a small coverage, how much is the premium approx?

[SportsNut]

Originally Posted by GreenSky

Choose Fidelity or Assurity and include ROP. Premium still affordable, easy issue, and you will still make a few bucks.

While $25K is a bit small, I'm targeting people who want a smaller amount because no one else does.

Rick

Hmmm Rick, you must have the upgraded software for both companies because my software only allows a min of 50K term for either of the two companies mentioned.

I think TransAmer will allow down to 35K face amount but if they will buy 35K they will buy 50K, IMO. For that matter, have you compared these cos that offer 50K of term life to the full gambit of those who offer a minimum of 100K...? The typical client can get 100K for almost as cheap as the 50K. My opinion is if you are giving into their wish immediately w/o educating them based on what they can have for little more $$$, then maybe the client isn't getting their money's worth. Just a thought.

Another question, who only needs 25K of term life...? I guess I have never met those folks.
- - - - - - - - - - - - - - - - - -
Have you been to the movies lately...?

They always educate you on what you can get for just a quarter more... don't they...? I ownder how much more pop and popcorn they sell, or more importantly how much more revenue these large movie houses bring in by offering the next size up...? It is just a quarter more...

So Mr client, for a quarter more (maybe 10-20 or 30 bucks per month diff), you can have the 100K of coverage. Shouldn't it be considered malpractice if you don't share that thought with the client...?

I have sold too much insurance in one day, now I am trying to sell you smuck agents.

[Cornelius]

You can go to Term4Sale.com - Term life insurance comparisons (over 120 companies) to see some carriers. I would guess most if not all of them do business in Connecticut.

[Kita]

Thanks all, I was selling a couple a policy and they immediately referred me to a young couple. Passing me the phone I briefly asked the basics to quote (smoke, age, meds, then amount). The amount was only 20-25k due to the husband laid off and their insurance went with the job.

I never sold term this low and was about to let them know 50k is the minimum. Obviously when I meet with them I will show options. However since it is a referral, and their first agent experience, I wanted to at least service/quote their initial request. Who knows I may have stumbled on a niche market in these economic times, or at the very least a new door opener.

Kita

[atlantainsguy]

Have you considered a UL running under a secondary guarantee, Kita? They can keep it longer for a lot less (UL vs. ART renewal rates and no physical), plus get some great tax benefits if you use an Option 2 with a wash loan. This low a face should be pretty much non-med from most all companies. For the same price as a $25K 30-year Term, you can probably guarantee coverage to age 100 running at minimum. Just an idea....

Atlantainsguy

[Full Throttle]

I would sell them something, but I wouldn't spend much time looking for a $25,000 DB as it won't pay you much (your a business owner and your time is worth something) and the couple is likely uneducated about insurance pricing. He could likely get a $100,000 10 year term policy for $10-$15/month, if he doesn't have at least that much available, it's going to lapse no matter what you sell him.

[pomfin]

For young people you maybe able to get 100K coverage for less than 20 dollars per month. How cheap you would like to get?

[VolAgent]

For something that small, you better make sure the policy fee is commissionable. For someone that young, and for that little coverage, the fee is probably almost as much as the actual insurance.

But you really ought to be asking, is this even worth your time? What else are you getting out of this, quality referrals, other business, what?

[Full Throttle]

But you really ought to be asking, is this even worth your time? What else are you getting out of this, quality referrals, other business, what?

Completely agree. If it's a quality person with financial potential going forward, I would write a small policy at a near loss to have a reason to keep in touch. If you do anything with securities, given he's out of a job, he may know others at his previous company that were recently laid-off with 401k rollover potential.

If he doesn't have much future financial potential and/or won't make a good client in the future, I either wouldn't write the business or do it via mail. Either way, it doesn't sound like you're going to make much on the front end here.

[SportsNut]

Originally Posted by Kita

Thanks all, I was selling a couple a policy and they immediately referred me to a young couple. Passing me the phone I briefly asked the basics to quote (smoke, age, meds, then amount). The amount was only 20-25k due to the husband laid off and their insurance went with the job.

I never sold term this low and was about to let them know 50k is the minimum. Obviously when I meet with them I will show options. However since it is a referral, and their first agent experience, I wanted to at least service/quote their initial request. Who knows I may have stumbled on a niche market in these economic times, or at the very least a new door opener.

Kita

Reminds of the guy who adamently wanted only 5 yr term, nothing else. (former agent, of course). I said no problem, the best quote is XYZ... He said OK, that will work.

I said, I feel that I MUST inform you about a money saving technique for those who want a 5 yr term... He said, "Oh yeah, what is that".

I quoted him the 10 yr term which was 1/3 rd less ansd said he doesn't need to keep it beyond 5 yrs... He said great, that is even better. At the end of the call he informed me that he was going to keep it for the entire 10 yrs. and thanks me for not listening to him completely.

Moral of the story is, listen, then think... then advise based on what makes the most sense. Offer options, as it sounds that you are going to do, but don't be influenced by a gruff client voice who knows exactly what they want and nothing else.

Think of it like this... if you go to your Dr and tell him or her exactly what treatment you want, (and that isn't the best solution), do you think your Dr will prescribe your recommended solution...? Not a chance. You should be the same way.

[Newby]

In my opinion, people that ask about real low amounts of term insurance don't understand what term insurance is. If they want it to cover loss of income or payoff a mortgage and all debt they usually need a minimum of $50,000 and usually several hundred thousand.

When they are asking about less they are usually trying to cover a permenent need with term and that's not a good way to plan. They are not working cost effectively.

[arnguy]

Why even bother with term insurance under 50K----it is so inexpensive?

[wibroker]

If you must write this - go Western Reserve Life. They have commissionable policy fee so maybe you could buy more than a happy meal on the comp you make. They are $25k minimum.