Policy review can be a great tool to get your foot in the door with a new or existing client. You will often find that the current policy is grossly underperforming due to the decrease in interest rates and that the policy is in danger of lapsing without increased premium payments.
Upon review, if your client is having trouble keeping up with increased premium payments because of underperformance or keeping up with existing premiums because of fixed income limitations, talk to them about our variety of Term/UL Hybrid products.
Before the cash values are exhausted to help pay premiums for an already unaffordable policy, show your clients how to utilize a 1035 exchange into one of these Term/UL hybrid products to lower current premiums or purchase a paid up policy.
With carriers beginning to introduce Term/UL Hybrid products, it can give your client an option to have a policy that combines flexible premium structure of a UL with the affordability of Term Insurance.
Most of these products accept a variety of different premium payment patterns including a single payment from a 1035 exchange unlike a traditional Term plan. They are purchased in guarantee periods of 10, 15, 20, 30 years but include a secondary guarantee that will run to age 121. This secondary guarantee can be accessed by paying an increased premium if the client wishes to extend their coverage without undergoing medical or financial underwriting.
As more of our major carriers begin to replace their traditional Term products with these Term/UL hybrids, it opens the opportunity for significant 1035 exchanges to be made from an underperforming policy into these products in order to purchase a paid up plan or ascertain a greater death benefit.
If you have a client in mind that would benefit from one these hybrid products please or contact your Life Sales Desk to learn more!