WP on term?


GA Medicare Expert
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Talking to a good friend in Knoxville the other day. College buddies who majored in insurance and went down different roads. He has always been a life guy, I am in health.

He was telling me about converting term on a client from 20 yrs back. Seems the client had a WL policy with a term rider. He has been on WP for a few years & the term was about to expire so he converted the term. Seems that Mass will waive the premiums on the converted term as well as the perm plan.

I don't sell much life and most of what I sell is term . . . always naked, no WP. That got me to thinking, am I missing something?

Frankly I don't have the patience or desire to argue the possibility of converting term somewhere down the road, but it got me to thinking. Do carriers routinely allow term conversion while the plan is on WP and then continue to waive the converted premium or is this out of the ordinary?
Cant' speak for the term houses, but the "bigs" do it. When I was with Northwestern Mutual, they taught us to sell WP on the term products for exactly that reason.

What I used to do on a term sale was go out with a proposal for the term and one for a 90-Life WL product (I believe that was the WP conversion option at that time). Show them the term and point out the slight extra premium for WP benefit.

If they squacked (or even if they didn't) I'd whip out the WL showing the plan starting 3-5 years from current age. Nice deal, convert under WP and accumlate CV policy with zero premium outlay. Sold it every time.

Sometimes you could beat the term house proposals showing exactly this sales scenario. Sure, company X can give you WP and pay your premiums for you, and sure you'd have about the same death benefit if you died. But what if you live....(they show them the CV policy again) and just shut the hell up. Worked like a charm.

I have no idea if companies like WC, Banner and so on allow this, but I doubt it.

Why you think I bad mouth cheap term policies! Spend a few extra dollars and get a decent contract. I'm thinking that just too many people pushing stuff they simply don't understand the basic concepts. Plus places like MM, IM, MT etc etc have likely competitive rates to boot if there is any rating issues. Sure they don't compete with Super Prefered Rates but, throw in smoking or C, D tables and guess what! They are competitive in term pricing, okay some are some are not depending, if you have a smoker NML and IM both rate up in the top 5 in competitive prices.

Ps, the scenario you are referring to is an excellent "Wedge Issue" if you get into actually tyring to win business over from other agents! Most will not have a clue about WP with Term and WL.
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