Who Still Offers Decreasing Term???

scagnt83 · 10-21-2009, 08:34 PM

What companies still offer a decreasing term policy?
I have a client whom I just aquired the other day. His wife just applied for a decreasing term policy with some random carrier/agent, two days before I met with the husband...lol.

I know that decreasing term policies are almost always a ripoff, and that the client can almost always find a traditional level term for the same price or better. I explaned this and am going to be running her through underwritting this week.

Im trying to figure out who my competition is! I know that Farmers still offers decreasing term, but who else does??
And do you know how strict their underwritting standards are for people who have had a stint put in within the past three months???
Any help would be appreciated.

Thanks!

Pawnature · 10-21-2009, 09:55 PM

Monumental has a 15 and 30

rgrace · 10-21-2009, 10:48 PM

Liberty National also offers a decreasing term policy. They have a level premium decreasing term, and a straight decreasing term. They call it Mortgage Protection. Not sure what term periods they offer though,

scagnt83 · 10-22-2009, 01:17 AM

Thanks for the replies guys. I was suprised to run accross it. But obviously its still out there.

Is Monumental the company that does limited underwritting decreasing term? The one im thinking of wouldnt require blood work or urine, but their premiums where twice as high...

My competition is probably Liberty because they have a decent size presence in this area. Fortunately I dont consider them real competition...so im not worried.
Thanks again

rgrace · 10-22-2009, 03:05 AM

Originally Posted by scagnt83

Thanks for the replies guys. I was suprised to run accross it. But obviously its still out there.

Is Monumental the company that does limited underwritting decreasing term? The one im thinking of wouldnt require blood work or urine, but their premiums where twice as high...

My competition is probably Liberty because they have a decent size presence in this area. Fortunately I dont consider them real competition...so im not worried.
Thanks again

Liberty National does not do physicals. They require an oral swab from time to time. No urine or blood though.

Pawnature · 10-22-2009, 04:06 AM

Originally Posted by scagnt83

Thanks for the replies guys. I was suprised to run accross it. But obviously its still out there.

Is Monumental the company that does limited underwritting decreasing term? The one im thinking of wouldnt require blood work or urine, but their premiums where twice as high...

My competition is probably Liberty because they have a decent size presence in this area. Fortunately I dont consider them real competition...so im not worried.
Thanks again

With Mon it depends on the amount and age of insured. Most of time though it will require a oral swab or urine. Over 100k I believe requires paramed.

Nazz Utopia · 10-22-2009, 04:22 AM

Any Mortgage Life policy is decreasing term. State Farm just brought theirs back to the market. I don't think you can say they are "almost always a rip off". It depends on the client and what they need.

scagnt83 · 10-22-2009, 05:03 AM

Originally Posted by Nazz Utopia

Any Mortgage Life policy is decreasing term. State Farm just brought theirs back to the market. I don't think you can say they are "almost always a rip off". It depends on the client and what they need.

Well, I realize that was a very broad statement. And every client has different needs. But there is a reason most companies started to do away with them, because a good bit of the time you can get the original amount of coverage in a level term for the same premium. The ones that I saw just never seemed to be a good deal. I could stack multiple term policies on top of each other and usually get the client a better rate than the decreasing policy.
The decreasing term policy is just a yearly renewable or increasing premium type term in reverse. And most yearly renewable policies cost more over a long term basis.
I know that state farm has been focusing on their term insusrance a good bit the past few years. Probably because it has such a huge profit margin for the company and they have taken huge losses on the P&C side in coastal areas. Since they have a field force of agents who are not very life insurance savvy, a "mortage policy" tacked onto a homeowners policy is an easy sale. Plus they claim to give you a discount on the life policy if you "bundle" the two at the same time. In reality your not really getting a great discount. The "discount" brings their price points back in line with the competition.
But I cant say that a decreasing premium policy doesnt have its place. And thanks for the info on state farm. They have made a lot of changes over the past few years.