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A Message From Mark Milbrod
& Brian Van Winkle
Huge Sales Opportunity "Term Life? - An Asset They Didn't Know They Had" Happy Spring! Although it doesn't quite feel like it yet. With the new season comes some great sales opportunities. One such opportunity that is resulting in some substantial commissions is our "WANTED" campaign. You may have seen an e-mail that we sent out a couple of weeks ago looking for older convertible term insurance policies. Older term life insurance policies that are still in their convertibility period are a very desirable commodity. If you have clients that have these types of polices and have an attained age of 67 or higher and a minimum face amount of $250,000, you may be able to provide your client with a lump sum of cash that they would have normally never knew existed. Here are some possible client scenarios that life insurance was implemented and where you may want to look to uncover these types of policies: 1. Buy-Sell Insurance -- typically these types of policies were purchased as a funding vehicle for Buy-Sell arrangements often purchased as 10 or 15 Year Term with issue ages of 55 and older. If still in force, these policies are typically still convertible with attained ages ranging from 67 - 72. Most of these policies outlive their original purpose and will ultimately lapse and the premiums paid will never be recouped. Now, with their conversion privileges still in tact, these policies now have a value that can be used to possibly reimburse the owner for the premiums paid or in some cases for an amount well in excess of those premiums. 2. Key-Man - There may be a business client that holds a Term Life Insurance Policy that was purchased on the life of a key employee. These policies also will typically lapse when they are no longer needed but have a significant value attached to them. Once the insured has retired, possibly moved up to an ownership position in the firm or has simply reached the end of a "Guaranteed Premium Period," there is an opportunity to indemnify the firm. 3. Mortgage Protection Term - Many individuals have purchased term insurance as a means of protecting their families from a premature death during the term of their mortgages. In addition, a bank may have required the purchase of a term life insurance policy to protect them from the same risk. In any scenario, the need for the insurance typically lowers over time as the loan balance decreases or is ultimately satisfied. This often results in un-needed policies that are still in their convertibility period. 4. Expiry of Guaranteed Premium Period -- People do buy Guaranteed Term Life Insurance all the time for a number of reasons. When the guarantee period expires (e.g. 10, 15, 20 Years), these policies have the same convertibility options and can also be worth a significant sum to the policyowners. The bottom line is that the scenarios outlined above provide a snapshot of where to look for a possible windfall to you and your clients. In addition to your existing client base, this gives you an opportunity to talk to local attorneys and CPA's that have clients of their own that may have these types of policies. When the policies are converted to a permanent plan, you make a full commission on that conversion, while your client can find value in an asset that they probably didn't even know they had. These policies are valuable. Don't let them lapse without seeing what they are worth! | 
