Term Lapse Stats Needed for Article

[djs]

I do remember that only around 3%-4% of their term policies ever pay out (this is just for NYL though), I would guess that the more competitive term companies have a higher payout rate.

Ironically, I doubt premium on term has much to do with it. Honestly, whether I pay $10 a month or $13 a month isn't going to make a big difference after the policy is in place.

Now, just a guess, face amounts under $100K probably lapse faster than face amounts over $300K. Reason I suspect this is true? Low face amount policies may have been bought on emotions rather than on true need. The client will either eventually cancel that one and replace it with a lower cost / higher death benefit (i.e., underwritten) plan or just let it lapse.

Dan

 

[WinoBlues]

Many of my non claim term lapses. Were really replaced with term or converted by me. Most of the other term I have sold resulted in a lapse for some other agent.

How does that factor into the data?

 

[scagnt83]

Ironically, I doubt premium on term has much to do with it. Honestly, whether I pay $10 a month or $13 a month isn't going to make a big difference after the policy is in place.

Now, just a guess, face amounts under $100K probably lapse faster than face amounts over $300K. Reason I suspect this is true? Low face amount policies may have been bought on emotions rather than on true need. The client will either eventually cancel that one and replace it with a lower cost / higher death benefit (i.e., underwritten) plan or just let it lapse.

Dan

I was actually referring to volume sold/business model, not price. NYL agents are leading with WL 90% of the time most likely.

Also, NYL agents are big on converting policies; many are trained to sell 5year or ART and convert in the first 5 years; I am sure this makes their ratios a bit different than some of the term giants out there who sell more 20YT than anything.
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And the replacement statement is big, along with conversions. Just because its cancelled does not mean that person is no longer insured.

 

[Ron Van D]

Holy crap! I've never heard of anyone dying from their term insurance. Do you know which carriers have such deadly insurance? I want to make sure I avoid those carriers.

You know, when I read Mark's post, I couldn't help but laugh out loud. I think this is the only forum that gives you that kind of entertainment (Markfromgriffin) and it's well worth the price.

 

[somarco]

True, but Mark has such a good sense of humor that he can laugh at himself.

 

[m2788]

You know, when I read Mark's post, I couldn't help but laugh out loud. I think this is the only forum that gives you that kind of entertainment (Markfromgriffin) and it's well worth the price.

I try and make you all laugh.
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True, but Mark has such a good sense of humor that he can laugh at himself.

I like laughing at myself.

I think I'm very funny.

 

[somarco]

I like laughing at myself.

I think I'm very funny.

Put your clothes back on and step away from the mirror.

 

[BNTRS]

I'm in a bad mood today, Peter Tired of this f**king winter weather! A "Code Blue" weather emergency has been declared because the temperatures are not expected to go above 20 degrees for the next two days. I know---we're a bunch of wusses here in the Delaware Valley.

Warmer than 20 degrees? Put a negative in front of that number and you've got Northern New England this season. It broke 30 degrees the other day and I decided it was so warm out I was going running. Went pretty well not withstanding the puddles and unplowed sections.

 

[WinoBlues]

Warmer than 20 degrees? Put a negative in front of that number and you've got Northern New England this season. It broke 30 degrees the other day and I decided it was so warm out I was going running. Went pretty well not withstanding the puddles and unplowed sections.

Had to mow the lawn today. Had to put on regular shoes. To cold for flip flops.
Do not know if it will break 50 today.

 

[GreenSky]

Had to mow the lawn today. Had to put on regular shoes. To cold for flip flops.
Do not know if it will break 50 today.

Wish I was up in your area. It only got to 77 and was really too warm to play golf.

I hire a guy to mow my lawn.

Rick