Why do your clients want term?
As you know, term life insurance is the most popular type of policy on the market. This is due to the fact that it is the cheapest and most accessible way to get coverage. Additionally, many individuals only want coverage for a period of time, such as until their children have grown and moved out of the house.
An Alternative to Term Life Insurance
Guaranteed Universal Life Insurance with:
Return of Premium Rider
Accelerated Benefit Rider
Guaranteed Universal Life (GUL) Insurance is a great alternative for your clients who are interested in term. It allows them to get affordable, (and most importantly) PERMANENT coverage that they couldn't get otherwise with a 10, 20, or 30 year term policy.
I know what you're thinking... Yes, a GUL policy will have higher premiums than a simple term policy. But we are working with carriers who have developed a solution:
Return of Premium / Guaranteed Cash-Out Rider
If your clients' circumstances change or they no longer need life insurance, the Guaranteed Cash-Out Rider may be their way to restore financial stability. The amount of their Cash-Out Benefit will depend on which of the two amounts below is lower.
At each option period, the Guaranteed Cash-Out Benefit will be the lesser of:
- A percentage of premiums paid OR
- The benefit maximum, which is a percentage of the death benefit