Are you uncertain when it comes to talking to your clients about converting their term life insurance? Concerned about the cost to the client, thinking it will be too much?
Today I would like to show you an option that will benefit both you and your client. Consider a partial conversion to their existing term benefit plan. It gives your client more options at a younger age.
Let’s take a look:
Jack made the right decision and purchased $500,000 of term life insurance 5 years ago. Being a healthy non-nicotine user, he purchased term because it was affordable at age 38. The coverage for a 20 year term policy costs him $33.11 monthly; well within his budget. Jack considered that he will be 58 when he gets to the end of the term and may still need some coverage but determined to take care of it then. At todays costs, another 20 years of term coverage at age 58 would jump to $194.53 a month provided he is still healthy. A conservative IUL would run $628.25 monthly. That might be tough to swallow. Plus, Jack would have to go through full underwriting again.
Why not do a partial conversion early?
Doing a policy review, even on term life insurance, can create opportunities and add value to your agency. Jack was approached 5 years after he purchased his term life insurance with the idea of doing a partial conversion and locking in life insurance premiums for the rest of his life at an early age. It was suggested that he convert $200,000 of his term plan while he still had options in the choice of conversion product offered and while he was still young. Jack, now at age 43, decides to convert the $200,000 into an IUL for $120.56 monthly, keeping the balance of the term, $300,000, for $22.65 a month for another 15 years.
Advantages to this planning:
- No medical underwriting to make the change
- Permanent life insurance coverage NOW, at a younger age
- You make a new commission
- Your client will appreciate you taking care of them
Let’s talk about conversion for your clients. Give us a call to find out what their options are and present it to them. If you don’t offer it, someone else might!! Call 800.747.4445 or 361.993.3820!