Are "Spouse Riders" a Thing of the Past?
- Thread starter VaDwayne
- Start date
agentexhorter
Expert
- 94
you might consider having the spouse get their own policy for a couple of reasons...
1. what happens to the spouse's rider if the primary insured dies...maybe the spouse would have acquired a health condition preventing coverage of their own, and at least they would have to get coverage at their attained age
2. what happens to the spouse's rider if, like 50% of all marriages, a divorce happens?
it might cost a few dollars more a month to have their own policy, but probably worth it, just for the reasons above.
- 2,908
Might actually save them quite a bit each month if they get their own fully-underwritten policy. Most of the companies that offer spouse riders are shlock, non-med where "standard" means table 3 or 4.
G
Guest
Guest
Midland National has what you want. I just wrote a 20 yr level term this week on the husband, wife and 7 kids: $1Mil on him, $250K on her, and $5K on each child. This was exactly what they wanted. The Additional Insured rider (hers) is convertible at any time prior to age 70, including at time of death of primary insured. No evidence of insurability required.
- Thread starter
- #5
My question was just a general question? I noticed that my carriers didn't offer it and I was wondering if is just something insurers quit offering.
There's also a third reason.
I always write separate policies because I have had clients that faced a financial setback a few months after purchasing the policy and cannot afford the combined payment.
If they loose a job or BBIMIP (bought beer instead of making insurance payment) they can drop one of the two policies and the primary can stay insured - and you at least still have half your commissions.
I don't see any advantage in a spouce rider, though I do have to say DJAdams tip on the convertible from Midland National sounds like a good way to get some add-on sales.
Sweet. Party-on dude.
Yes, unfortunately this posture of BBIMIP does represent a glimpse of some of middle America today. Good way of stating the mindset, Lone Wolf. Maybe BBIMIP will make the urban dictionary if the recession lasts long enough.
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I still see a lot of companies that have spouse riders. I always write separate policies though.
The only advantage for a spouse rider I see is that you save the client one policy fee if the spouse term rates are the same as they could get on their own.
To me it just makes more sense to give them both their own policy. That way if the health or financial situation of one changes but not the other we only have to replace one policy down the road instead of both.
Underwriting is another issue. I'd rather write two different policies and have one declined or rated then both at the same time. At least we have one covered and can deal with the other.
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I also like the idea of separate life insurance polices for each spouse. I think it is just a cleaner process that way.
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