How Many of You Sell Term then Convert?

[Justin Bilyj]

Is this a strategy that is outdated or still sound?
I dont want to hear "what evers best for the client", we are beyond that in this discussion. I just want to know if you do it and the merits or cons of the strategy.
Thank you for you contributions!

 

[WinoBlues]

Is this a strategy that is outdated or still sound?
I dont want to hear "what evers best for the client", we are beyond that in this discussion. I just want to know if you do it and the merits or cons of the strategy.
Thank you for you contributions!

I convert my term as well as other's. Probably more other's.

Biggest advantages are no contestability , conversion credits and no medical underwriting. Biggest cons are many fewer options than in the past, maybe higher cost.

 

[dtran310]

Just curious, how are you presenting your conversions?

 

[WinoBlues]

Just curious, how are you presenting your conversions?

If they are my term I have been leading up to it since they bought the term. If they were written by someone else I probably AOR'd them and have been preping them for a while. If they are new they are probably a referral so there is some trust in me already. I approach them as most cases. Solving their problem. Conversion is an option along with rewriting them. I show the pros and cons of both.

I just did on for a ONL 67 yr old client that swore she only needed a $250,000.00 10 year term 10 years ago. September it is 10 years and a brain anurizum(sp), last year, later. She can take a rated new term policy or a dialed down conversation with a $1,100.00 conversation credit. No brainer;-). Issue paid in a week. Also now writing her husband.

 

[tlmarketing]

It's a great strategy. Not everyone is ready to hear that they need permanent insurance...why fight the tide? The most important aspect is that they have insurance.

Put them in a term policy with good conversion and work on their mindset over time.

 

[rousemark]

Justin, it is still a valid concept and works well for many agetns. Clients seem to be receptive because when they bought the term, they expected their need for insurance to decrease over the years and many have found that not to be true, if for no other reason than their goals are not the same today as they were a few years ago.

 

[Justin Bilyj]

Lee, how do you "prep" your clients over time? Do you send them any pdfs, videos? Do you have any rules of thumb when looking at amounts to convert ie premium or amount approaches?

If anyone has any converting pieces be sure to send them my way or post them!
Thanks,

 

[rousemark]

Lee, how do you "prep" your clients over time? Do you send them any pdfs, videos? Do you have any rules of thumb when looking at amounts to convert ie premium or amount approaches?

If anyone has any converting pieces be sure to send them my way or post them!
Thanks,

Here is a CPA that recommends term conversion..

Thomas Chandler Thomas & Hinshaw, LLP

 

[WinoBlues]

Lee, how do you "prep" your clients over time? Do you send them any pdfs, videos? Do you have any rules of thumb when looking at amounts to convert ie premium or amount approaches?

If anyone has any converting pieces be sure to send them my way or post them!
Thanks,

Combination of normal client contacts by phone, mail and or email. I do not really use company brochures, during the sale or after.

 

[Aram Fingal]

I always present a permanent and term option. Everyone WANTS permanent insurance but the price can be prohibitive. Letting them know that they can convert some or all of the term policy later, gives them peace of mind when they have to "settle" for term because it's all they can afford. It adds value to the term policy and makes for an easier sale.

The best life insurance policy is the one that is in force at the time of death. If they don't buy anything because they can't afford it, or if they allow it to lapse later for the same reason, it isn't going to do them any good. If they buy a term at least they are covered for the term. And if they convert it later, so much the better.

The other reason a lot of people go for this is because they want a higher amount of insurance for the time they will be supporting their kids, and will convert part of it later to term and let the remainder lapse. Obviously this isn't ideal, it would be better to do the split term/perm to start with, but again if it doesn't work for their budget this can be a good way to make it work.