Do you want to offer your customer a quality Term product, or a stripped-out Term product? Is that your definition of "best" -- or is it somethig else such as what's best for the agent, or what's best for the company?
Do you want to offer your customer a quality Term product, or a stripped-out Term product? Is that your definition of "best" -- or is it somethig else such as what's best for the agent, or what's best for the company?
Atlantainsguy
You mean there's something other than a term policy that pays when someone dies?
What's the difference between "quality" and "stripped down?" Specific company examples please.
Rick
------------------------------------ ILIAA
Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
"It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change." Charles Darwin
You mean there's something other than a term policy that pays when someone dies?
What's the difference between "quality" and "stripped down?"
Rick,
I'll humor you. If both are in place when the client dies, they work equally as well. If someone wants a term policy for 20 years, has no need or desire to convert to a permanent product, the cheapest product works.
If someone want to convert or wants the option to convert if they desire to do so, then a company with a quality permanent portfolio and conversion options make sense. In my opinion, people's situations change often enough as do their desires, the price difference between a plan with good conversion options and limited conversion options is so little, why not.
Specific company examples please.
West Coast Life - my understanding is their only conversion option is into an over priced UL product.
Ohio National - convertable into any of their permanent product portfolio with competitive products.
Great response. Clear and to the point. I can't argue with that.
And I have no issue with Ohio National. Great rates. Great company. Crappy commissions but that doesn't diminish their quality.
They are one of the few carriers that offers good term with quality coversions. But I'll guarantee that's not what Atlantainsguy was suggestiing and I would like to see his response before you make a very intelligent post.
As for me, I sell the lowest price term. If you want permanent, buy it. I don't do finacial planning. I only sell insurance.
In my opinion the shorter the term the better. I think it would be cheaper too but have to consider the age upon buying a policy.
I would say the longer the better or more chances that you will need to use it.
Over 95% of the people that have term will not die with it!
I don't understand why you think shorter is better. I can think of a 1,000,000 reasons why this would not be better.
------------------------------------
Mark Rosenthal aka markingriffin
IMO/Ins Agent/Agent Trainer/Free Advice markcrosenthal@aol.comwww.realfastservice.com
Please visit mywebsite to learn more about me.
Email me for my Free Prospecting MP3 Tapes.
Male, 38, twenty year term, best class, 750,000, convertible to company's choice ul = 50.29.
Male, 38, twenty year term, best class, 750,000, convertible to any wl offered by the company = 51.62.
I never quote the first example.
hmmm.....I would never quote either example.....Seems a little expensive to me. Why would you convert to a WL policy...so that your client can over pay for a death benefit and not take advantage of 20 years worth of dividends? Most conversions are death benefit plays...not for cash accumulation.
Why not list the carrier? Here for example:
38 y/o, Male, Best Class, 750k, Monthly, California, 20y term:
Genworth - $39
Western Reserve - $41
Lincoln - $43
ING - $43
Principal - $44
AG - $44
Hartford - $44
Rick -- there are several issues at work here when the original poster asked what is the "best" Term product.
First, Life Insurance has always been primarily a financial product of guarantees, not risk. If you want risk, call your stock broker.
Second, the "pie" can only be sliced three ways -- the company's slice, the agent's slice, and the customer's slice. Each company slices the pie differently.
Third, when dealing with Term or any other insurance product you can either help people buy it, or sell it. There's a huge difference that Full Throttle seems to understand. People aren't stupid, and know if you're helping educate them to buy as a good consumer, or just trying to sell them something on a "trust me" relationship basis.
As far as Term is concerned, let's start with the fact that most Term insurance is "cheap" -- premiums only vary by pennies a thousand -- as has already been validated by some of the other posts.
The salient differences as to what Term is "best" are in the guarantees and conversion rights.
The following concepts are prefaced from the customer's perspective with -- "For the same price or less, do you want..." --
...Your rates absolutely guaranteed to never increase -- or do you want to give the insurance company the right to charge you more if they want to?
...The right to convert to a permanent insurance product if your needs change -- or do you want to give up that right?
...Who selects what you convert into -- you or the insurance company?
...Does the company historically have a good selection of quality permanent product to convert into?
...Is the conversion based on your health the day you bought the policy -- or the day you decide to convert?
These are some of the differences between a quality Term product, and a stripped-out Term product.
You are apparently buying into the insurance industry's advertising/pr machine that views life insurance only as a death benefit product and nothing else. By definition life insurance has to pay a death benefit. The contract says, "You die...they pay". This is a given.
So, now the issue becomes -- what else can your life insurance do for you while you're still alive?
One of the answers is the ability to double your spendable retirement income compared to overfunding a qualified plan beyond an employer match. That is the kind of customer-centric benefit that comes with quality Term.
If instead, the agent is commission-centered, then none of this really matters anyway. At least it won't matter until an agent like Full Throttle helps the consumer use their normal buying process, and replaces the stripped-out Term originally peddled to them).
I'll humor you. If both are in place when the client dies, they work equally as well. If someone wants a term policy for 20 years, has no need or desire to convert to a permanent product, the cheapest product works.
If someone want to convert or wants the option to convert if they desire to do so, then a company with a quality permanent portfolio and conversion options make sense. In my opinion, people's situations change often enough as do their desires, the price difference between a plan with good conversion options and limited conversion options is so little, why not.
West Coast Life - my understanding is their only conversion option is into an over priced UL product.
Ohio National - convertable into any of their permanent product portfolio with competitive products.
One more important reason to have good conversion options = Money. If you have been writting term for more than 10 years you should be converting some by now. Some of our die hard termites have had health changes as they have gotten older. Another reason is E&O
Sorry guys for being vague on this, by "best" I mean the best rate in regards to premium for a straight term, renewability, or convertible.
I quote a 33 years old male, non-smoker, 100K 30 years term through TransAmerica for $21.18 a month, while another agent quoted him the same thing for $16/month ( dont know what carrier though).
Sorry guys for being vague on this, by "best" I mean the best rate in regards to premium for a straight term, renewability, or convertible.
I quote a 33 years old male, non-smoker, 100K 30 years term through TransAmerica for $21.18 a month, while another agent quoted him the same thing for $16/month ( dont know what carrier though).
What risk class did you quote and what risk class did the other agent quote? Compulife would greatly help you out. Try sending a PM to Robert Barney - he runs the company. Well worth the minimal investment.
Term Life Companies
Linear Mode
