I know I have beat the subject to death and beat up on other agents who don’t beat the subject to death, but allow me to begin this Monday by sharing with you the actual cost of dragging your feet.
This particular example actually is a long time friend of mine who has trusted me with their family life insurance for some time. On an annual review this year we looked at the two term insurance policies he had in force, a $200,000 20 year term that was 5 years old and a $400,000 20 year term that was 3 years old. The total annual premium for the two policies was $1890 annually, a bit high because when he bought the first policy he was still chewing tobacco. While we did get him non smoker rates, they weren’t as good as his health would have earned him absent the tobacco use.
Now, three years out from quitting chew, in great health, there is every reason to believe that he would qualify for preferred plus rates from Banner Life. I presented the idea of replacing both policies with a new $600,000 20 year term with Banner for a total premium of $1790 annually, a $100 a year savings and a brand new 20 year term length.
This was back in late March. They drug their feet on the decision to make the change and finally decided around the first of April to go ahead. Same coverage and a longer term for less money finally sunk in. So I sent an application and ordered an exam. Right after he missed the first exam and had to reschedule we got word that Banner was having a rate increase, so I let him know that there was a deadline to the rates I had quoted and he agreed to get the job done.
I’m never pushy about the process, but I definitely kept him abreast of where he stood with the impending rate change. Well, long story short he drug his feet right past the deadline, one of those no second chances, you snooze you lose deadlines, and the $1790 he was hoping to get suddenly became $2028 annually. It went from no brainer savings to, although not much, an increase in his monthly outlay.
Bottom line. Agents everywhere should be talking to their clients about where they stand with their policies every year. A policy shouldn’t be a final document, but the beginning of a long term conversation. I know the deadline thing has been abused by some agents, but if you have any doubts about the integrity of the advice, ask the agent to provide you with a copy of the company announcement and rules for the rate change. Anytime you can save money and increase your life insurance amount or term length, jump on it like a chicken on a grasshopper.
Disclaimer. I’m back in the chicken and egg business after a 2 year hiatus so forgive the Colorado country colloquialisms.