I've just gotten appointed for FE but have been doing mortgage protection for a number of years. I don't ever remember actually replacing a policy while doing mortgage protection insurance and certainly don't feel comfortable doing it. What % of sales do you think that you are replacing other coverage? What are some tips to know if what you are offering is better than what they have? Do you mainly replace a term or UL that is going to change in price at some point in the future, or are you replacing whole life policies as well? It seems like it would be questionable to replace any whole life coverage that is in full benefit which is also priced below what you could offer them.
Advice, Tips on Replacing Coverage
- Thread starter Speck
- Start date
- 6,134
I can shoot you over a couple things. Email me at [email protected]
Big Stick
Expert
- 80
Ben can offer you good stuff. Hit him up on that offer.
Simply keep in mind your not out to replace a good thing with a bad thing. It's the other way around. There are a TON of over priced policies where you can get MORE money to their family for the same price or get them IMMEDIATE coverage instead of not being insured at all right now.
Ben's info will also help you see you can help people who have a ton of cash value and may be THANKFUL to get a paid up policy in its place, or that took out a loan on it and they are paying for less coverage than they think.
Most everyone, if not everyone, here is to help, not hurt.
Simply keep in mind your not out to replace a good thing with a bad thing. It's the other way around. There are a TON of over priced policies where you can get MORE money to their family for the same price or get them IMMEDIATE coverage instead of not being insured at all right now.
Ben's info will also help you see you can help people who have a ton of cash value and may be THANKFUL to get a paid up policy in its place, or that took out a loan on it and they are paying for less coverage than they think.
Most everyone, if not everyone, here is to help, not hurt.
- 19,451
Well since some here call me a "replacement artist"
, I guess I can chime in. Of course the ones that say that are being complimentary but I take it as a compliment anyway.
If replacing the current policy is in the best interest of the client then do it. Now, many things go into the decision of it being in the best interest, cost, contestability, face amount, cash value, etc. But if it's in the best interest and it's what they want, replace.
If it's not in their best interest then don't replace it. Even if they want to.
That's how I handle them. Of course companies and other agents will get mad about about it. Even the companies that preach "do the right thing for the client" will change that tune when it's their policy being replaced.
As long as it's in the best interest of the client you won't have problems other than hurt feelings.
- 5,243
Yes, it is an in-force contract.
I had a guy that told me that he didn't have any life insurance. I sold a policy and then when I was packing up, I noticed what looked like a policy in a stack of mail. I told him that I needed to sign replacement forms if he was replacing that policy. He wouldn't do it so I told him that I was shredding this app then. He finally did. I can tell you, though if there was a problem this dirtball would crow from the rooftops about how you told him to cancel that old one and how you SOLD HIM this other one. NSF for first draft. What a surprise.
Yes. It will vary with jurisdiction but in Tennessee, it doesn't even have to be an in force "issued" policy. It is considered a replacement if they have made application and coverage is provided through a binding or conditional receipt.
- 6,134
Well of course! I'll help no matter who the agent is under.
