About Replacing Life Insurance Policies!
Dear friends, Get the best insurance agent training. On one of the Facebook insurance agent training groups, an agent tells people how he writes a 30-year term for his clients. Then he replaces the life insurance each year to sell a lower premium 30-year term policy. He does it so he will earn a new commission that year. When you sell a new life insurance policy, to make a new commission – it is wrong! It is bad for your clients, the insurance company, and the industry! And it is called churning!
Churning is when an agent replaces a life insurance policy for another insurance policy with no changes to the coverage! Agents often churn policies just to get an new commission for the new policy that they swap in. State law has restrictions and additional rules on agents who want to replace coverage. This practice is illegal in most states and is also against most insurance company policies.
Churning (or replacing) a life insurance policy should be your last resort. And, it should only be done when it is in the client’s best interest. Yes if you think hard enough, you can always find a reason to switch your client to a new life insurance policy. But, is it the right thing to do for your client?
Replacing Life Insurance Policies Is Bad For The Client…
Replacing life insurance is bad for your client because the 2-year contestable period will start over. If they die within 2 years, then the insurance company could contest the claim… Based on any misrepresentations (mistakes or omissions) made on the application. The suicide exclusion will also start over! This means that a company can deny the claim if the insured’s death is a result of suicide within the first two years.
Then most cash value policies, such as whole life, or universal life have surrender fees. These fees will decline over time. But, when you replace a policy your client will start over with a new surrender period. Plus, when you replace a policy within the surrender period… Your client will pay a fee to transfer the cash value from one policy to another.
Remember, your client will go through underwriting and another physical exam to get a new policy. So, if their health has changed they could end up paying more or could be declined.
Then you will want to consider… Is the new company as financially sound as the current company? Is their performance history as good or better than their current company?
As you can see there is a lot more to replacing and selling a new life insurance policy than just comparing illustrations, benefits, and riders.
Replacing Life Insurance Policies Is Bad For The Company And Industry…
When you replace a policy there is a cost to the company for underwriting, exams, commissions, etc. The higher the company lapse rate, then the more the company is spending per policy. And it takes years for a company to recoup those costs. This means if they lose a lot of policies in the first few years, then the cost of insurance will go up for everyone.
Over the past 30 years, the industry has had a lot of problems and a lot of complaints about agents churning, replacing, and piggybacking life insurance policies. Because of that, there are a lot of government agencies trying to regulate our industry. That is why the NAIC has added a lot of regulations about how we handle replacements.
Each state insurance department has its own rules and procedures for replacing life insurance. But they must include the NAIC minimum requirements that all insurers and agents must follow when they replace a policy.
The procedures require that you to inform the the client of the implications of a replacement. (what are the drawbacks) You must submit a notice of replacement signed by the client and the agent to the replacing insurer… And then they will send it to the existing insurer. (the company being replaced) And you must provide your client with a hard copy of all sales materials that you used leading up to the replacement.
The insurer is required to show the state’s replacement procedures are in place. Includes insurance agent training and a system to monitor the replacement activities of all producers.
Get The Best Insurance Agent Training To Do What Is Right For Your Client!
If you decide that replacing life insurance is in your client’s best interest, then you need to take the time to find the best possible policy for them. You want to make sure it is worth all of the trouble.
By the way, when you take the time to get the best insurance agent training you need to do a good fact-find… Then you won’t be tempted to replace an existing life insurance policy. Because you will learn how to help people find the money to get what they need and want… even now!
“I urge anyone in the financial services business to get involved with the Insurance Pro Shop. Whether it’s from Lew, Jeremy, or Alex the training you will get you on the way to reaching your goals as a professional in the industry. They don’t “sugarcoat” what they teach. They are straightforward with their approach to training. What I’ve learned is that there are some “basics” to learn in this business. And if you don’t learn them you’ll probably experience what most professionals in the industry experience; mediocrity. Lew, Jeremy, and Alex at the Insurance Pro Shop will teach you the basics at attracting the right prospects and how to ask the right questions to help people with financial problems.” John Dandridge, IL (11 years in the business)
“I think anyone who has experienced Insurance Pro Shop in any capacity knows the first class training that Lew and Jeremy Nason offer agents, both new and experienced. But the one thing that makes the Nason’s special is how much they care about not only us, as THEIR clients… But OUR clients as well. The Nasons will not only help you increase your income. But if you apply what they teach you, you will truly become a trusted advisor of your community. You will also learn to sell the RIGHT way. The Nasons are wonderful people and I am very fortunate to have met them!” Oliver Chamberlain, PA (12 years in the business)
When will you follow the ‘Top Producers’ to be a successful agent or advisor selling life insurance?
Let’s keep this simple. Most agents (90%) struggle to earn a decent net income after expenses. They take the easy way and follow what the herd does – buying mortgage insurance leads, buying the next hot sales system, software, etc. They are spending thousands of dollars each year.
However, the top 10% of successful agents do not buy leads, do not buy the next hot sales system, software, etc. Instead, they invest in the training and coaching they need to take charge and grow their insurance agency. They invest in the training, coaching, and support they need to help people and make a difference. Accordingly, they stand out from the crowd. They are seen as experts and draw prospects to their insurance agency.
Consider… The top agents and advisors we train and coach earn over a million dollars annually selling life insurance, annuities, investments, and their services. While thousands of agents and advisors who earned $30,000 – $50,000 per year, within a year now earn $100,000 – $200,000! And their income keeps growing as they become the Trusted Advisor people want to see! Why! Because when you learn how to help prospects find the money to get all the life insurance they need, the average case is $3,000 – $7,000 in commissions!
When will you get the selling systems, tools, training, and agent support to find the best mortgage insurance leads without buying them? So, you will double and triple your mortgage life insurance leads and sales even in this crisis?
IPS Mini-University In Insurance Marketing And Sales
*** Where To Start… Replacing Life Insurance Policies To Make A New Commission Is Bad For Everyone! ***
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In December 1999, we created the Insurance Marketing and Sales Resource Center because of the serious lack of marketing and sales training for financial professionals. There is a 95% FAILURE rate of new agents entering financial sales and most agents who survive struggle to make a mediocre income. It is because most agents are being taught to sell products – instead of learning how to help middle-income families find the money to get out of debt and save for their future. Our goal is to provide an affordable way for agents to get all the training they need to guarantee they will succeed and earn a superior income by helping middle-income families find the money to save for retirement to “Live Debt-Free And Truly Wealthy”!
Over the past 20-plus years, our family has helped thousands of agents and advisors increase their sales in a few weeks to earn $3,000 – $7,000 per week, $150,000, and more annually! By becoming members of our Insurance Marketing and Sales Resource Center. It is only $39.95 per month and you can cancel anytime. Check it out, because it has detailed insurance marketing strategies to attract the best prospects in your area, with many hours of agent video training. It also has in-depth appointment setting and insurance sales training, with even more agent video training… including the sales appointment scripts, fact-finding questions, and more. We also have live weekly insurance agent training webinars.
We are always here to help and guide you every step of the way to find your best prospects, and set appointments to succeed in selling more life insurance and annuities!
Here Is What Our Members And Experts Say About Our Affordable Insurance Agent Training!
“After just reading the first page of Insurance Pro Shop Marketing 101. I learned that I need a new business card, a new tag line and new phone line. That’s just from page 1. Then I asked Jeremy about Final Expense and he said stay away from it. He gave me the reasons why. He also told me never buy a lead. I learned more from him in 3 short 2 minute questions that I learned in the last six years. He has a very calming personality and helps you in any way he can.
I am blessed to have come upon Insurance Pro Shop. Jeremy is a delight and never gets irritated in the slightest and always calls you back. I am very fortunate to have met him at this junction in my life and career. Thank you for giving me the direction and patience I need now.” Neal Merems – CA (34 years in the business)
“Thanks Jeremy! I spent a good three hours reading the material under the membership mini-university (Insurance Marketing and Sales Resource Center) last night and I must say that I learned more last night then I have since entering the business nearly 3 years ago! I think your program will tremendously help my father and I in our business! Thanks,” Bryan Grissum – MO (5 years in the business)
“Just wanted to drop you a quick note about your webinars. Your webinar content has been FANTASTIC! You help to “cut through” to the heart of what’s most important, in order to do an accurate and great job for the client. Sure, you often run past the 1 hour mark, but it’s always been valuable content. IPS always delivers! Everyone who is a student of the life and annuity insurance business needs to hire you to be their teachers for insurance and financial planning. You keep doing what you’re doing. You’re filling a vital need in the insurance training industry. We’re all lucky to have you and your family serving the industry the way you do.” David H. Kinder, ChFC® – CA (11 years in the business)
“Will, thank you so much for adding the Trusted Advisor videos to the Private Member site. (Insurance Marketing and Sales Resource Center) I have watched the videos several times so far. Please continue to add great videos like those to the Private Member site. Best, Ric” Ric Komarek, RFC® – CA (7 years in the business)
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INCLUDES… 4 Live Hour Long Weekly Insurance Agent Coaching Webinars each month – Live Group Coaching – Case Design Classes – with Insurance Marketing, Prospecting, And Sales Training Tips and Strategies! You will have immediate access to all of our Past Live Insurance Agent Coaching Webinars!
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When Will You Learn How To Help Families? So You Will Increase Your Sales And Income Selling Insurance!
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Important Question… Are you in this insurance business to make sales? Or are you interested in helping families? Who do you think insurance prospects want to see? Do they want to meet with an insurance salesperson – or a Trusted Advisor who does their best to help them? When will you decide to make a real difference in people’s lives? The more personal insurance agent training, coaching, and sales support you get to learn how to successfully help families find the money… for a secure financial future. Then the more you will learn how to help yourself and your family! Nothing will change until you decide to take action to make it change!
Now It Is Up To Get The Best Agent Training You Need For Selling Life Insurance… To Make It Change!
How To Find Exclusive Life Insurance Sales Leads… In Your Area!
