When prospects request term life insurance quotes, the assumption is that you are looking for the least expensive and most comprehensive insurance coverage to meet a temporary need.
But how do you know you’ve found the best product for the money?
Ever heard the phrase, “You get what you pay for”?
Below are a few questions you may want to ask when considering term life insurance options:
1. WHAT HEALTH RISK IS BEING QUOTED?
Producers often focus on carriers that offer the lowest cost. But when building term strategies, aim to provide not only a great price but a realistic price based on the client’s current health situation.
As an insured, would you rather get comfortable with a price upfront that is realistic to your true health status or later find out that the bare minimum price you thought you’d pay has doubled due to health challenges that could have been discussed and positioned with the best carrier for the best price?
Delivering Good News is Much Better than Delivering Bad News
2. WHAT ARE THE DEATH BENEFIT PAYOUT OPTIONS?
Most term products are designed to offer payout options upon death; however, some term policies ONLY offer the death benefit using a PAYMENT PLAN. These plans are cheaper compared to other similar plans, so it is important to understand how the payout options affect the price. I often see these designs used in divorce situations where not all parties understand the payout options upon death.
Settlement Options Shouldn’t be a Surprise
3. ARE THERE CONVERSION FEATURES?
Can the term product be exchanged for a competitive permanent product that offers great pricing? What happens if your client’s health fails during the term period and he or she needs additional life insurance coverage beyond this period? Conversion features allow your clients to lock in their youthful health rates without having to endure additional medical testing. This can be a competitive feature at conversion time.
Healthy Options for the Unexpected
4. ARE THERE SPECIAL FEATURES THAT COULD CAUSE THE PRICE TO CHANGE WITHIN THE TERM PERIOD?
Some carriers require you to log in to a portal and provide your daily living activities, exercise routine, routine medical visits and such. Should you stop providing this updated information as requested the premiums could change based on the contract. Be sure you are aware of what is required to be reported and tracked and what occurs if you stop providing the carrier your activities before deciding on this type of policy.
Unexpected Premium Changes if Life Style Updates are Not Provided
This article is for discussion purposes only and should not be considered legal or tax advice. Every individual financial situation is different, no decision should be made from this information without individualized professional assistance.
BDLife212, LLC * 855-235-4332 * www.bdlife212.com * firstname.lastname@example.org
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