Know your competition - Be a student of the business

[Mike Lewantowicz]

As per discussion with several agents on the calls and at the live meeting in Louisville this week, I promised I would send out some information on Group Term products that I have found helpful.

 

 

Often times a client lets us know that they have coverage at work.  This Life Insurance at work falls into 3 categories:

 

1. Life insurance that the Employer Pays for:  typically this is a flat amount like $25K per employee OR 1X Annual Salary, or 2X Annual Salary.  This is great as long as the employee keeps their job.  While it can be converted to an individual, it is an individual PERMANENT plan that is built on Group rates.  (Please take a look at the attachment that shows the Group Rates that one plan offers.)  It is EXPENSIVE when you compare it to Armor or Columbian

 

2. Life Inusrance that the Employee Pays for:  This is a group term price.  (See the attached GMAC rate chart.)  The price goes up every 5th birthday.  The price that they start at does NOT stay the same.  Employees do NOT know this and typically do not realize it until it is too late to get good coverage on their own.  Often times, a 30 Yr Term policy will save a client TONS of money over time when compared to a group term rate over the same time period.

 

3.  Accidental Death that Employer or Employee pays for:  Sometimes the Employer gives this away to the employee.  The Employee then thinks that they have real coverage.  Sometimes the Employess pays for this coverage, and the price is so inexpensive that the Employee thinks it is a great deal - not realizing that these policies rarely pay out the benefits because it is "Accident Only".

 

Be sure to know what the client is paying for and how much they are paying.  Your client may not know how much they are paying, but you can get them to pull out a pay stub which often shows the amount that they are paying.

 

 

AARP Group Term

I have also attached a copy of the AARP group Term rates.  They are MORE EXPENSIVE than the group term rates at GMAC.  Keep this in mind if you have a client that is paying for this.

 

 

 

Military coverage through SGLI and VGLI.

 

SGLI - Serviceman Group Life Insurance is available to all Active Duty Military.  It is $400K for about $22/month regardless of age.  It is an AWESOME deal.  However once they leave Active Duty, they cannot take it with them.

 

VGLI - Veterans Group Life Insurance is avail to all Veterans once they leave active duty.  This is a rate that increases with age - just like a Group Term at work.  The real problem is that the rates on VGLI are very HIGH and this policy should only be owned by people that are too sick to get any other coverage.  Here is a link to the VGLI rate chart: http://www.insurance.va.gov/SGLISITE/VGLI/VGLI%20rates.htm

 

 

 

Tristate Financial Network
2527 Nelson Miller Parkway Suite 107
Louisville, KY 40223
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