Editor’s note: This post was originally published on 11/15/16 and has been updated for accuracy and comprehension.
What is Return of Premium Term life insurance?
Return of Premium Term life insurance allows the policy holder to get their money back if they outlive the policy term.
As a life insurance producer, you’re always looking for that “magic bullet” that will give you an edge with clients and help you to sell more life insurance.
That’s because the more value you can offer, the more likely they’ll be to buy life insurance, the more money you’ll make and your business will continue to grow.
In this video, we’ll show you how to combine an Executive Bonus Plan using Return of Premium Term (ROP) WITH a guarantee – and everyone loves a guarantee!
Watch the video now and find out how to use these techniques to sell more life insurance.
Sell more life insurance
Can your clients have their cake and eat it too?
Yes, as a matter of fact, they can, with life insurance. Here's the cake: You may have heard of an Executive Bonus plan, but I'll bet not using the Return of Premium Term. Before you go anywhere, this actually makes a lot of sense because of two important components.
First, it's term insurance and practically everyone, including financial advisors and CPAs, like term insurance, but this term has a Return of Premium feature.
Second, the Return of Premium is guaranteed. You remember that word "guaranteed?" Everyone loves a guarantee.
When you combine executive bonus with Return of Premium Term, you get life insurance coverage at a net cost, very close to the cost of buying a regular term policy. Not only do you have increasing cash values during the policy years, but you also get a guaranteed, 100% return of the total premium at the end of the policy duration, with no tax.
And if you're thinking, “What about buying regular term and investing the difference?” That's not likely. In just one example of many, you'd need at least an 8% rate of return in that side fund to match the cash value in policy year 10 and over 9% in policy year 20. That's just not easy to do.
What is easy is calling us so we can help you sell more life insurance by illustrating it for one of your clients. Then they can have their cake and eat it, too.
How to sell more life insurance
Sell more life insurance by bringing maximum value to your client when you combine an Executive Bonus Plan using Return of Premium term with a guarantee.