How bad is Table 10?

[Tahoe Ray]

I can say that the best insurance is what you have been able to keep in force until you die.

Disagree. The best insurance covers your financial losses, including your income, when you die.

There are a lot of people who definitely don't need life insurance to be permanent. There are also a lot of people who would never buy 2-3m of permanent insurance, even though that's what their current financial circumstances require.

For some it's a want, for others it's a need. But when you've reached retirement age, if your planning has been done right, you shouldn't NEED it (of course you can still WANT it).

Unless you really did a good job and have an estate issue. Then you kind of NEED it again.

 

[rousemark]

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

You are writing a limited pay on a table 10 client? Do you know the odds thye will make it long term? Much better to write a life pay and give them more coverage for the money. Plus, life pay at a higher face will normally have about the same paid up amount for a win, win situation.

 

[LostDollar]

Disagree. The best insurance covers your financial losses, including your income, when you die.

There are a lot of people who definitely don't need life insurance to be permanent. There are also a lot of people who would never buy 2-3m of permanent insurance, even though that's what their current financial circumstances require.

For some it's a want, for others it's a need. But when you've reached retirement age, if your planning has been done right, you shouldn't NEED it (of course you can still WANT it).

Unless you really did a good job and have an estate issue. Then you kind of NEED it again.

Ok! I think perhaps you and I are sitting in dramatically different financial positions and life situations so that each of our statements make sense for us, but maybe not so much so for the other person.

 

[Tahoe Ray]

Ok! I think perhaps you and I are sitting in dramatically different financial positions and life situations so that each of our statements make sense for us, but maybe not so much so for the other person.

That's how planning works. You may have a niche but as an agent, you need to design your coverage properly for the client you're currently working with.

It's also why you can rarely paint with a broad brush. Situations are often different so it's our job just to listen to what's important to the client and help them implement that strategy in the best way possible.

 

[WinoBlues]

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

I like short pays as well. In this case the most permanent coverage may be more important. If that means full pay to get the premium down to a, place they will take it maybe that would be an option.

FYI - Not sure about your company but many only pay comp thru T4

Edit: What @rousemark Said

 

[WinoBlues]

You are writing a limited pay on a table 10 client? Do you know the odds thye will make it long term? Much better to write a life pay and give them more coverage for the money. Plus, life pay at a higher face will normally have about the same paid up amount for a win, win situation.

Welp, I should have read through the thread before I answered.

Great minds.

 

[WinoBlues]

Life Insurance agents.

 

[LostDollar]

That's how planning works. You may have a niche but as an agent, you need to design your coverage properly for the client you're currently working with.

It's also why you can rarely paint with a broad brush. Situations are often different so it's our job just to listen to what's important to the client and help them implement that strategy in the best way possible.

alright. that makes sense.

 

[WinoBlues]

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.

So, if you were an agent, you would make the $50,000.00 / $19mo difference decision for this young T10 family man. I don't b the agent has disclosed the insureds finances.

I am about to call a term client that still has about 6 years on a term policy I wrote. I am going to propose he replace it with a permanent plan. He is 75. The term is about $160mo. Probably less than his cable bill. The new plan will be about $1,000mo. That will sting a bit. But losing the $250,000. Will sting more. We will see which is more important to him. The death benefit or the premium. He has another I wrote, $400mo, that terms at age 91.

 

[LostDollar]

So, if you were an agent, you would make the $50,000.00 / $19mo difference decision for this young T10 family man. I don't b the agent has disclosed the insureds finances.

I am about to call a term client that still has about 6 years on a term policy I wrote. I am going to propose he replace it with a permanent plan. He is 75. The term is about $160mo. Probably less than his cable bill. The new plan will be about $1,000mo. That will sting a bit. But losing the $250,000. Will sting more. We will see which is more important to him. The death benefit or the premium. He has another I wrote, $400mo, that terms at age 91.

I just made a decision in relation to life insurance based on premium I knew I could afford to pay rather than what might have been more ideal coverage amounts. If a person buys a policy that is more than they can afford and they then drop it in a year or two, that does neither them or the agent any good. I have no clue what the proper way for an agent to present that idea is, but if I was an agent presenting a policy I would see that it got worked in somehow if I thought finances were a concern.

I would rather see a person have a smaller policy they can keep, than a big one they can't and I would rather make a smaller sale that sticks than a big one that doesn't. I couldn't see that 40 and 20 years ago. I can now.