Generate Sales – And Save Your Clients Money While Doing It

Term Life Insurance is generally purchased to replace the income of the bread winner of the family and to provide sufficient financial liquidity for the family to satisfy any outstanding debt, such as a mortgage or medical bills.

These days, many clients are looking for ways to save money, and are cutting back on luxuries as well as many day-to-day necessities.

There is a way to keep clients covered, while at the same time saving them some premium dollars – and generating some commission dollars for you.

The Income Protection Option (IPO) is a product feature designed to help you meet the financial needs of your clients, with premiums 20-25% lower than traditional Term Life Insurance.

By merely restructuring how the clients’ death benefits will be paid out, the policies can provide a guaranteed annual income stream to the surviving heirs for as many as 30 years, or as few as five.

Case Study
  • A case was placed in April 2012
  • The 20 year, $2.5 million term policy was issued at a standard risk class, with a monthly premium of $577.00 for a male age 47
  • Now the client is age 48
  • I designed a new policy that includes the Income Protection Option – which will pay $500,000 upon his death, and provide a $100,000 annual payment to the family for 20 years – same total payout of $2.5 million
  • The new monthly premium is $476.73 – the client now has a new 20 year term policy costing $100 less every month – lowering the Life Insurance cost by 20%

Income Protection Option will not fit in all sales scenarios; however, we encourage you to review the term cases you have written over the past few years.  Reach out to your clients – ask if the extended death benefit payout would work for them.

Contact us today for more information.

4 Ways Clients Can Cash Out On Their Life Insurance

Your clients need guaranteed life insurance protection today – but life changes, and so can your clients’ life insurance needs.

A unique feature on guaranteed universal life is a return of premium option, included at no additional charge within the policy, which provides clients with an exit strategy, giving them flexibility for their future.

How does this rider work?

Clients purchase a Guaranteed Universal Life (GUL) policy and make the required premium payments – the required premium is the amount that guarantees the death benefit through age 100.  On the 15th, 20th and 25th policy anniversary, clients have a 60-day window where they have the opportunity to surrender their policy and get their premiums returned to them.  If they don’t exercise the rider, there will be no impact on the policy.

4 Cash Benefits For Your Life Insurance Clients
  • For Retirement.  A 45-year-old insured receives 20 years of death benefit protection and at age 65 receives her paid premiums back and uses the cash to supplement retirement income.
  • For College Costs.  The insured bought two permanent policies and currently has young children.  One of the policies was a GUL policy with the refund option available.  When the children are at the age to attend college, the death benefit needs of the family change. He can surrender his GUL policy in year 15, 20 or 25 and use the cash to help pay for the child’s college education.
  • For Business Planning.  The insured owns her own business and has a key employee, Tom.  She purchases a GUL policy to protect her business if Tom died unexpectedly.  In year 18 of 20, Tom resigns – and two years later she will receive all of her premium payments back.
  • To Pay-Up Another Policy.  A 55 year old has a need for $5M in life insurance.  He purchases two GUL policies, one for $2M and another for $3M.  When he turns 75, he no longer needs as much coverage.  He surrenders the $2M policy and uses the cash value to pay up the remaining policy.  The insured still has $3M of insurance with no further premiums due.

Contact your Life Sales Rep for more on how the return of premium option can positively impact your clients and your business.

One Life Insurance Plan – Numerous Benefits

Life Insurance is one of the most valuable assets there is – especially when you consider the numerous benefits that a permanent life policy can provide now, while still securing a financial future for loved ones down the line.

Successful individuals between the ages of 30 and 50 with young families will find that permanent Life Insurance is an ideal asset.

If properly structured, permanent Life Insurance can produce:
  • Tax free death benefit to loved ones
  • Tax deferred cash accumulation and income
  • Tax free benefits to pay for long term care expenses
On top of all these benefits, permanent Life Insurance also offers:
  • Flexible payments
  • No required minimum distributions
  • The opportunity to earn premium discounts and rewards – for clients who engage in John Hancock’s innovative Vitality Program

Do you know which clients you should be marketing permanent life insurance to?  Look for clients that seek out value – not just the lowest price on a spreadsheet.  Talk to individuals who are open to new concepts and would be interested in one plan that will address their multiple needs.

Contact your Life Sales Rep to learn more regarding what benefits you could be offering using Life Insurance and a few hundred dollars per month.

How To Convert More Life Insurance Applications Into Paid Production

Surprises can be fun, but not when they’re thrown into the Life Underwriting process.

As producers, we all have experienced the challenge of making a recommendation, completing an application kit, and working through days, even weeks, of underwriting – only to learn that the client cannot qualify for preferred rates due to family history, or that they must pay a substandard premium because of multiple driving violations.

After all the work, how many of your applications actually end up being placed in-force?

Eliminate any unexpected surprises during underwriting

We can provide you with tools that will aid in accurately assessing and qualifying your clients’ insurability.

Improve the percentage of applications that are converted into placed policies by performing a basic life needs analysis; asking the right field underwriting questions, and setting reasonable expectations with your client.

Qualify your impaired risk clients more accurately with one page fact finders we call Quick Quotes – with over 30 customized fact finders available online, there is a questionnaire available for almost any client profile.

Completed forms are analyzed by our dedicated Underwriting Department

When appropriate, a member of the Underwriting Team will speak with you personally about your clients and provide directed questions about their health and medical history – the goal is to obtain tentative carrier offers before you make a carrier recommendation or take an application.

Completing a life insurance needs analysis and gaining an understanding of your clients desired premium outlay allows us to work backwards – maximize the insurance policy benefits while not going a penny over the client’s intended budget, even if they are adversely approved in underwriting.

Don’t assume all of your clients are healthy and will qualify at preferred best rates

The reality is that less than 10% of all applicants qualify for the top tier rate class and the majority of clients are approved at standard rates.  Take advantage of our services and expertise to avoid any underwriting surprises.

Contact us today to learn more about the resources available, and how you can improve your life application placement ratio.

Create New Sales Opportunities With Term Insurance

Term Insurance is often used as a cost effective way to replace income, repay debts and/or provide a legacy in the event of a premature death.

In addition to these great functions, there are certain term insurance products that can provide your clients with more comprehensive benefits while they are still alive.

Promoting these solutions will not only deliver additional value to your clients, but will also help differentiate you from the competition in what is largely a price driven marketplace.

Consider This

For many clients, a major medical event (such as a heart attack, stroke or being diagnosed with cancer) can have devastating financial effects and leave their family unsure of how they will continue to make ends meet while paying for medical care.

Did you know that there are term insurance products which could be used as a source of income in the event that the insured were to experience once of these medical events?

With built in critical illness and chronic illness benefits, you can help your clients obtain coverage that will offer benefits while the insured is still alive.  There is even a product available with these living benefits that can accommodate non-medical underwriting for face amounts up to $249,999!

With the introduction of these living benefit features to the term insurance marketplace, you now have a simple sales concept that you can use to create new sales with prospects and existing clients alike.  How many of your clients would consider replacing their existing term coverage with a product that could pay benefits if they were to experience a major health event?

Contact us today for a copy of our Policy Review Kit and to learn more about the living benefit term solutions available in your state.