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“I want to open up josh and let him kind of go over. And i i don t wanna steal. Any thunder let him tell you about something unique that came across that helped him actually make more sales and add more premium to to this week s production. Josh are you there yes.
Sir. How you doing i m doing good thanks for jumping on the call. Today. Buddy and the floor is yours all right.
Thank you. Sir yeah. Today i wanted to talk about something that you know it did make me a little bit extra money this week. And really it makes me money you know every month as the i look back over the month.
I made almost an extra three thousand eighty over the last four or five weeks by using. What s called the reduced paid up option that you know all whole life insurance or at least most whole life insurance policies. Have so i m just going to kind of you know give the example from this week. And you know maybe a couple more examples you know and explain it and if you have any questions.
You know let me know um. You know we ve all gone into a house. Before you know maybe. We see they ve got a link at heritage policy.
Or something like that and we know. It s an overpriced product and we kind of start to get excited. But then we find out that it s you know five ten years old and we re thinking well they re third. You know it may have been overpriced when they sold it but now i mean i don t have anything that s going to beat that i mean that s you know in most cases.
That s the case and then i have the situation. I went into with a gentleman on thursday and he had a five thousand dollar policy with columbia and you know they re they re kind of priced a little bit higher than most of companies out there and so usually you can you can beat that but he d had it since 2007. So it s almost a decade old he was paying 30 a month. You know there s not much i could do now.
He told me he wanted to add to his policy and so you know i mean normally and you know days gone by years gone by i would have just added. I figured out found out that he could afford you know 30 extra a month. He was already paying 30 and he could afford another 30 well i still i wanted to get the bottom of it and saw you you always want to look at the policy and if you can t get access to the policy call in and sometimes it s better to call in i think. But call in to the company never fun to call in to columbia.
And i actually had to wait the 25 minutes on hold. But you know when call him that you know there s some questions you want to ask you always want to get the policy number of the effective days the face amount the premium payment you know the frequency..
If it s drafted and then the last things you want to ask is you know how much cash value is there if there s any wounds. And what s the reduced paid up option is and then once you have that then you re armed with all the. Information you need. Well i found out that he had right at 1900.
In the reduced paid up option. And what that is the reduced paid up option is where the person can. Surrender the. Policy so he could surrender the 5000.
Policies. He s. Paying 30 a month on and it would change it to a 1900. Paid up policy and so he wouldn t have to make payments on it.
Anymore and so where i couldn t beat the 5000. Price. I mean i ran the numbers and you know they were coming out of like you know 50 bucks a month for you know his age and health conditions um. So there was nothing i could do to beat it.
But i looked at the reduced paid up and so when i when it comes to 1900. I don t have to come up with you know the full five thousand now now i can you know i ve got some numbers to work with so what i did i ran the numbers and i gave him two options. I thought that here s a situation his was a little different his ex wife was actually making the payment on his current insurance. And you know i don t have an ex wife but i can t imagine you know having her make your insurance payment and then you paying her back and that s what he was doing i could just imagine that just adds a layer of drama to life so it seemed like he wanted to get away from that.
But so i gave him two options well i ran the numbers for two options let me kind of explain what i went through. Option one was that he could keep the 5000. Columbian policy. Add a three thousand dollar foresters policy.
That would have cost them thirty one dollars a month. And he would have a thousand dollars in total for you know at the end of the day sixty one dollars a. Month the option two would be to convert the 5000 to the nineteen hundred dollar reduced paid off option and on another 6000. Foresters for 59 a month and he would have seventy nine hundred so almost exactly after it was a right you know crunching the numbers.
I could have actually still getting the exactly thousand for less than what it was so. But i wasn t thinking about it when i was in the house now don t ever try to explain that to the client. I mean reduced paid up option is a you know complicated to agents and somebody you know i tried to explain this and you re gonna buy two clients you know if they re confused they re not going to make the change. They re not going to buy so don t don t explain it to them what i explained it to em was it option one you can have 8000.
Insurance. It ll cost you 61 dollars a month..
Now you ll have to pay thirty of it or 31 of it and your wife will have to keep paying the thirty. And you ll have to pay her back or option two you can get seventy nine hundred it will cost a couple bucks cheaper lee 59. A month. But you will kind of cut your wife out of this whole deal and he looked at that and he said.
Yeah. Let s do that let s do the 59 for seventy nine hundred and so you know where normally i would have just gotten a 30 sale. I walked out with a 59 a month sale so i doubled. My commission um another example there this was a couple weeks back i ran into somebody someone situation.
She s have a policy for four or five years. She was uh she had ten thousand she was paying eighty five bucks a month. It was real clear early on there was nothing i was going to be able to do to beat it and i was almost about to leave. But you know you know she what i asked her her why why she said man she wanted more insurance.
But she just couldn t afford anything and she just didn t have any extra money um. And she didn t have her policy. She did have something that had the figures on at least you know how much the face amount was and the payment. So i knew you know what it was.
But you know she was real nice to me anything that she liked me to i know she trusted me and so i was like well you know you know what i could do for you you know you really need a copy of your policy. So look calling the company let s at least get them to send you out a duplicate policy that way you ll have that now of course in the back of my mind. I want to figure out what you know options are there and while i m on the phone. You know i find out you know she s got a ten thousand dollar policy.
It s got a reduced paid up option of twenty two hundred and i m doing the math. And i figure out that i can get her on the get her ten thousand five hundred for the same payment now. I ve already worked that out before i even get off the phone with the insurance company and then when i get off. I was like well you know um you know we ll have to see if you qualify for the course.
But we might be able to get you a little bit extra insurance for free and you know you can see. Her eyes perk up a little bit you could tell she was interested so i ran the numbers again just to make sure i say well yeah. It looks like i can get you. Ten thousand five hundred for the same payment well you re paying like 85 67.
This one s 85 74. But you know for less than ten cents. More you ll get five hundred dollars. More now let s let s make sure you qualify for first and so i start going through the health questions.
I don t normally read all the health questions on my you know i go through the prescriptions. And you know health history..
Before all that and so i knew. But i did that more as it s kind of like a take away clothes and you know kind of you know piqued her interest and you know and then she started saying well you know i did want to be buried in kentucky and i m here in indiana. She s like well with five hundred dollars you know get me down there yeah. Five hundred i was like i don t know it s probably not enough to get you down there.
But obviously you know extra five hundred will help and so you know once it got down to the end you know she was down for it and we went through it now one thing i want to make clear again is you know don t try to explain what you re doing until after they re closed on once they re closed on it then you can explain it um. The other thing too is that you want to make sure you capture all the premium um. You know i ran the numbers. And if i would have just offered her ten thousand i could have saved her two dollars a month well saving her two dollars a month is not something she s going to make the change for him you know most times folks are but if i could say you know because five hundred dollars is a lot more than two dollars and so in this situation.
You know i got an 85 a month policy um. You know just by looking at the reduced paid up figuring out what i can get her and i got her some more insurance. Which is what she wanted and you know i would say i guess i got paid for it. Oh.
The other situation i came into now this is about four or five weeks ago. And many times you run into a situation where we hope to where we find something where they ve got something overpriced. You know we can match or beat. Their price.
And they can you know maybe you can get some of their cash value out on this lady had a ten thousand dollar greatest mutual of omaha policy. Which they re graded mutual. Obviously is a good price that they can only a whore guaranteed or they can only qualify for guaranteed issue. But she was fine health wise.
But she had it for six or seven years so it was you know it was you know pretty good price. But she had like a one year old pioneer american policy and so and she had to ten thousand paul said. Ten ten thousand dollar policy. So she had twenty thousand dollars.
Paying a hundred twenty dollars a month. And so when i ran the numbers. I figured out that she could get a twenty thousand dollar policy with one of our companies for a hundred and seventeen dollars a month. And she would actually get two thousand dollars in cash from you to omaha or she could get four thousand dollars reduced paid up and so you know in this situation used to i would just offer the the cash option and that would be yet.
But i always like to give people two options that always benefit to me so i gave her you know option one you can pay a hundred and seventeen dollars a month save a couple bucks a month and you can get twenty four thousand dollars in insurance or option two you can get a hundred and seventeen dollars a month keep the same amount twenty thousand. But you get two thousand dollars in cash and i ll say something like it doesn t matter to me is you know whichever one you want you want more insurance or would you like catch now she chose the cash option. But that s still it s a better way to show with them and anytime. There s cash value there s a reduced paid up and so you can use those two options.
Um. You know to give them you know choice..
A choice b. That s a benefit to you rather than say. Well you can you know choose option. You know where you can get the cash back or stay.
Where you re at well. I don t want ever give them that option you know so that s that s what you do i m sure somebody s thinking how in the world do i change this to reduce paid up um. One of the things that i have is whenever i m doing a replacement is that i we need to stop their bank draft and you know i don t want to have to waste time calling into the insurance company and sometimes it s going to take 20 minutes. I mean i would have hated to have to all in to colombian wait 25 minutes on hold and then have to call back in five minutes later wait another 25 minutes just to stop its banker.
So what i have is something that i ve hand written out and that i ll fax them to the insurance company. And it s something i ve just scanned into my computer. And i print them out ten fifteen at a time and i just carry them in my bag. And it says this it says.
I and it s got a blank for their name would like to stop the bank draft on policy number. It s got a blank effective blank usually but immediately then i got a place for their date of birth. The last words are social and then it has this little phrase in there my decision is final no visits or calls from any representative of your company take me off your calling list that never works. But maybe it will someday and then if there are either cash or in during their policy.
If they re well as their cash surrender. I ll just write in please send me the cash render forms if they are wanting to if we re going with the reduced paid up option. I ll say please send me the reduced paid up option forms. I found that when you re doing a cash surrender when they they ll mail them the forms those people never call me to figure it out i mean maybe one out of twenty usually that they want their money they want it now they ll figure it out with the reduced paid up option.
Which is usually the same exact form is the cash surrender form. It s usually like one. The first half is for cash surrender. The second half is reduced paid up.
But they ll send that form out the client will call me. I ll go out there takes five minutes to fill it out usually the form is completely filled out all they have to do is sign it some companies you got to put in some you know their policy number and different things. But that s something my doing like i said. You know just over the last four or five weeks.
Um. You know i made an extra three thousand ap just ” ..
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