Tuesday, February 18, 2014

Products and Markets

In this ever changing environment it is not easy to remember which products are designed for what marketplace.  Today I am going to try to simplify this process for the life products offered by Protective Life.


As most of you know, Protective is one of the companies that puts their term plans on a UL chassis.  We are told that the reason for this is that the company is able to deliver the product at a cheaper rate than they could on a true term platform.  In the case of Protective Life – the term(?) product is called the Custom Choice UL.  As advertised, this product will nearly always pop up on the ‘Top 3’ when you are comparing term plans against the competition.  Many times – it will pop up in the Number 1 position.  This product is guaranteed convertible for the length of the guarantee period of the term not to exceed 20 years and age 70.  This product is convertible (exchangeable)  to the Advantage Choice UL and the Pro-Classic Universal Life products without evidence of insurability.  Issue ages 18-75.  The minimum face amount allowed on this product is $100,000.

ADDED BENEFIT:  This product has an added benefit that I really like.  At the end of the ‘guarantee period’ the death benefit reduces and the premium remains the same.  On most plans – the death benefit stays the same and the premium multiplies tenfold.  The only two companies that we represent that offer this ‘kinder, gentler’ option are Protective and Lincoln National.


In this case the product is still the Custom Choice UL.  You just illustrate it showing the length of time you want to guarantee the premium.  In most cases – unless you ask me to do otherwise, I illustrate this product to age 105. When you need to have the absolute lowest premium on your product – many times THIS is the product.  


This product is the Advantage Choice UL.  Only a slightly higher rate than the Custom Choice and it has moderate cash values.  Having cash values offers your client an ‘exit strategy’ that he will not get with the no cash value products.  Ben Feldman used to say, “It is better to have cash than not to have cash.”  It made sense then and it makes sense now.  When you ask me to run a UL illustration for you and when the prospects are 55 or younger – generally I will run THIS product – simply because it is not much more money and it has the exit strategy.  The minimum face amount on this product is $50,000 and it is issued between ages 18 and 85.


Protective Life has just introduced their Indexed Choice UL product and it is a good one!  We have 6 companies that offer an Indexed UL product.  As this type of product gains in popularity so do the offerings from the companies.  Approximately 40% of all UL sales are indexed products.  If you have not been selling IUL because you don’t understand it – this is the product to start with (and possibly to stay with).  It is very easy to understand and there are not a lot of ‘moving parts’ to confuse you and your clients.  Where this product beats the rest is in the costs and fees associated with it.  The insurance costs are lower than the competition – which means that more of the client’s money will be going to fund the cash values!

The only real difference between the fixed UL and the indexed UL is the way the company credits the interest!

Today more than ever, your clients are going to need help building their retirement nest-egg.  This product is ideal for building a cash fund that can provide a ‘tax free income’ to your clients when they retire and keep paying it until they die!  You may have a client who will not pay $100 per month for life insurance but would willingly put $500 per month into a retirement plan.  We can illustrate it for you.

If you have a prospect who is self-employed and is earning a nice income,  you can help them set up their own supplemental retirement plan that offers them the opportunity to share in the gains in the stock market but offers them a guarantee that their money will NEVER earn less than 1.00%.  There is NO DOWNSIDE RISK to them.

Call us today and let us run illustrations for you on any of these great products.

Thank you for your business.

Don Boozer
Don Boozer & Associates

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