Basics
What is term?
Answer: Temporary life insurance for a set number of years with no cash value.
What happens if the client outlives the policy?
Answer: Coverage ends, and no benefit is paid.
Is term life renewable?
Answer: Yes, but often at a higher premium.
Does term life build cash value?
Answer: No. It provides death benefit protection only.
Name 2 common term life riders.
Answer: Waiver of Premium, Accelerated Death Benefit, Return of Premium, Child Rider
What does 'level term' mean?
Answer: The premium and death benefit remain the same for the term duration.
What is 'convertibility'?
Answer: The option to change term insurance into permanent insurance without a medical exam.
What is 'return of premium'?
Answer: Refund of all premiums paid if the policyholder outlives the term.
When is term life most useful?
Answer: For temporary needs like mortgage protection, younger children, affordability or income replacement.
Who is an ideal client for term?
Answer: Young families, new homeowners, people with debt, lower discretionary
Can term life be used for business protection?
Answer: Yes. It's used for key person and buy-sell agreements.
Is term good for estate planning?
Answer: No, permanent insurance is typically better for estate planning.
What factors impact quotes?
Answer: Age, health, tobacco use, family history.
What is non-med underwriting?
Answer: Approval without a medical exam based on basic health questions.
What is a 'preferred' rating?
Answer: A health classification that offers better premium rates.
Does lifestyle affect underwriting?
Answer: Yes, risky hobbies or occupations can lead to higher premiums.
What are the main living benefits
• Terminal Illness • Chronic Illness • Critical Illness • Critical Injury
NLG -Alzheimer's Disease
How do you overcome 'I don't need it'?
Answer: Ask who pays for their family if they pass unexpectedly.
Your getting a quote for me and I'm 5'10 and weigh 280 Lbs what rate class would I be if you're using NLG
Express Standard 2
How do you make it relatable with the person your sitting down with?
Answer: Use stories of real clients based on personal experience, if you don't have one leverage stories from the office
I'm married I'm 32, wife is 31 with two kids (ages 4 and 1), I make 75k a year and wife makes 85k. I have a total of 25 k in CC debt while my wife has 45k in CC debt. we just moved into our new house last month which cost us 580k. we are both healthy and don't smoke. our budget is 150 each. what's the Dime & what would you show us?
Husband: 1,555,000
Wife: 1,675,000
For NLG what are the Term Conversion end Age & also years on the 15,20, & 30 year term
70 years Old
15 year - 12 years from issue date
20 year - 15 years from issue date
30 year - 20 years from issue date
How do you overcome 'Life Insurance is too expensive'?
Answer: $1/day breakdown: affordable family protection / Starbucks example
What are 3 different reasons why a client would be auto declined when trying to apply for a term life policy
1. Current or recent Cancer Diagnosis(2-5 years)
2. Uncontrolled or severe heart disease
3.HIV or AIDS
4. Felony convictions/ Incarceration(10 years)
5. Suicidal history
What’s a sales tie down you can use during the presentation?
Answer: Mr & Mrs client if I can help you protect your paycheck, your home, and your legacy I'm assuming that's something your open to, Correct?