Thursday, January 30, 2014

Get the Facts - Save the Deal!


Most of us would not make a decision that involved our income without getting all of the facts in advance and acting on the facts that we got.  This is just good business practice.  However, almost daily, I see situations where an agent has reduced his or her chances of getting paid on a case by as much as 50%.  That is bad, but what is worse is that they could do ONE THING differently and prevent that problem.

I am referring to the applications that we receive (or quotes that we are asked to run) where we have NO IDEA what the actual health situation is for the prospect.  We look at the prospect and they don’t look like they weigh as much as we do – so we interpolate that we could probably get them a preferred risk (or if we aren’t wearing our glasses we might even think they will qualify for a select preferred rate – so we quote it that way and we submit the app).


What we don’t know from looking at the prospect is that his father died at age 45 of heart disease.  Or we don’t know that her mother died at 50 from breast cancer.  We don’t know that he chews tobacco when he mows the lawn or has a cigar when he plays golf.  We don’t know that she races motorcycles on the week-ends.  We don’t know that he is planning to travel to Iran to visit his relatives in October.  We don’t know that he quit cigarettes last November.  We don’t know that has asthma and is taking steroids.  There is a LOT we can’t tell by looking at our prospects.


We have talked about this before – but this is the ONE THING each of us can do to improve our bottom line – immediately.  Please stick with me.

The solution is simple.  When you have determined that the suspect is now a prospect, you say to them, “In order for me to give you and accurate quote, I need to ask you a few questions . . . “

1)    Have you ever smoked cigarettes or do you use any tobacco product?
2)    Have you ever been rated or declined for insurance?
3)    What is your present height and weight?
4)    Do You have high blood pressure or cholesterol issues?
5)    Has any member of your family (parent or sibling) had a history of or died from breast, colon, prostate, ovarian, melanoma or lung cancer? OR have they had heart disease or any cardiac related condition?
6)    Do you participate in any hazardous activities (sky diving, scuba diving, rock climbing, rodeo, auto or motorcycle racing)?
7)    Do you plan to travel or reside outside the United States in the near future (you can’t ask this question in Florida)?

All of this information is on the “Pre-Qualification Form”. Click here to download. Most of it is in question form – so all you need to do is ask the questions on the sheet.  If we run the illustration for you – you can just fax or email the questionnaire to us along with your plan description and we will use that information to give you what we believe to be the proper rate for your client.  We are 90% accurate when we have the information.

Print off some of these forms and keep them handy.  When the time comes – whip one out and dazzle your clients with your efficiency and thirst for the correct answers.

Thank you!

Don Boozer

Tuesday, January 14, 2014

What is ROPWOC?

Why Not ROP?

If you will take a look at the attached illustration (click here) for “ROP Client” you will see a 20 year ROP plan from American General.  This is an excellent ROP product and is representative of the marketplace.  The client can pay the premium of $4,332.00 per year for 20 years and at the end of that time, cash in the policy for the $86,640 cash value.  The client had the coverage for 20 years, didn’t die and got their money back at the end of the 20th year.

NOT a bad deal.


However, let’s assume that the client still needs the $300,000 of coverage at the end of the 20 year period – BUT they are uninsurable!  They can NOT take the $86,640 and keep the coverage for a $24,741.00 (increasing) annual premium.  The premium increases to $41,000 in four years and then it really gets expensive!  There is no flexibility in this product – that is the downside. 


ROPWOC (Return of Premium With Option to Continue) is a product that allows the client to reach the 20 year period and then decide if they would like to take the guaranteed cash value – OR keep the coverage for the same low rate they paid during the first 20 years . . . . guaranteed!  This options puts the flexibility back into the product!  A simple concept – a simple solution.

Take a look at the ROPWOC Client illustration now (click here).  ROPWOC is actually the TransAce product offered by Transamerica Family Markets.  The product has a very low premium.  It is so low that it is actually less than most ROP Term plans!  In a move to beat the ROP plans at their own game, Transamerica designed a plan that has a GUARANTEED return of premium at 15 years, 20 years and 25 years and then gives the client the opportunity to NOT take the cash value but to choose to keep the valuable coverage.  

Thank you!

Don Boozer