How bad is Table 10?

[bill3173]

Do clients actually understand what a Table 10 offer means?

Not sure what it means to a client, but to an agent it generally means it's now or never. I've never written a table 10 (several in the 4-8 range, with 8 being the highest). Table 1-5 can possibly have a better rating at a later date, if they are being treated for an illness that can be "improved". I just rewrote a lady from table 4 to standard. She was table 4 three years ago on a term and just rewrote her standard on a UL with the same carrier.

Unfortunately, 6+ the health usually worsens from there, and they won't get that offer the next time. Of course there are exceptions, but if I had a $100 for everyone that came back to me next year, after getting a super high rate up, and couldn't get it back, I'd have a few hundred dollars.

 

[LostDollar]

Not sure what it means to a client, but to an agent it generally means it's now or never. I've never written a table 10 (several in the 4-8 range, with 8 being the highest). Table 1-5 can possibly have a better rating at a later date, if they are being treated for an illness that can be "improved". I just rewrote a lady from table 4 to standard. She was table 4 three years ago on a term and just rewrote her standard on a UL with the same carrier.

Unfortunately, 6+ the health usually worsens from there, and they won't get that offer the next time. Of course there are exceptions, but if I had a $100 for everyone that came back to me next year, after getting a super high rate up, and couldn't get it back, I'd have a few hundred dollars.

For benefit of op, do you have suggestions about how a one carrier agent would go about presenting the high table situation to the prospect?

 

[bill3173]

For benefit of op, do you have suggestions about how a one carrier agent would go about presenting the high table situation to the prospect?

Not to sound hackneyed but that really depends on the situation, and almost every time I've dealt with an unusually high rate up, the person had little choice, so it's not really fair to use those examples.

In cases where the person just "wanted" the policy, and didn't realize what was coming, I would be very careful about presenting that premium, and quickly present smaller amounts, shorter terms, etc. A lot depends on the personalities of the people involved, and if expectations have been raised or lowered ahead of time.

 

[WinoBlues]

Do clients actually understand what a Table 10 offer means?

Explaining it is part of what we get paid to do.

Otherwise we are just FE only agents.

 

[WinoBlues]

I would be very careful about presenting that premium, and quickly present smaller amounts, shorter terms, etc.

I agree with depends on the client and the individual case.

However, I would generally be showing higher options. Because as stated at T10 this is probably going to be the best they are going to get going forward. Shopping it not with standing.

I would be showing the $100,000 as all WL to start. Also maxing out any PUAs. Also asking underwriting if they can take a higher face amount within the underwriting limits and exam that they have done. Give the insured and more importantly the wife an opportunity to say no. Then keep it all in the file.

Many ways to do what we do.

 

[WinoBlues]

No, I'm actually going to advise the client to drop the term, because on the illustration it only shows $1,500 total premium, but on the policy it shows $1,700 and the DOT is $222 a year.

At T10, if he dies in a couple of years and she asks why you took off the other $50,000.00?

 

[LostDollar]

Not to sound hackneyed but that really depends on the situation, and almost every time I've dealt with an unusually high rate up, the person had little choice, so it's not really fair to use those examples.

In cases where the person just "wanted" the policy, and didn't realize what was coming, I would be very careful about presenting that premium, and quickly present smaller amounts, shorter terms, etc. A lot depends on the personalities of the people involved, and if expectations have been raised or lowered ahead of time.

I've just gone through a potentially high table buying experience with a multi carrier agent. My only prior experiences buying life insurance have been at what I presume were preferred rates. Based on that, I think there are some generic starting points for conversation with a prospect about their decision process in that situation, but they are not relevant for an agent that can only quote one carrier.

 

[Chuckler]

At T10, if he dies in a couple of years and she asks why you took off the other $50,000.00?

I've drafted the illustration with the CWL 25 pay @ $50,000 and will show her how it will be better.

 

[TRG1225]

Explaining it is part of what we get paid to do.

 

[LostDollar]

At T10, if he dies in a couple of years and she asks why you took off the other $50,000.00?

I bought insurance at that age I have been able to keep, and I bought insurance at that age I have cancelled. From a perspective 40 years down the road, I can say that the best insurance is what you have been able to keep in force until you die.

A combination of budget constraints and adverse health issues may lead to a smaller amount of insurance than what the family would like, but I can assure you that 40 or 50 years from now, they will be happy to have even that much if they have been able to keep it and would have dropped coverage in a larger amount.