In this post, we're bringing you another great strategy to help your clients get more for their money.
This month, we're talking about business planning. One of the most common succession planning topics is funding a buy-sell agreement with life insurance. That agreement may require your client to have a policy for a specific time frame - 5 years, for example. But what if your client also has changing financial needs, like expanding their business or paying for a child's college tuition? Protective has a great solution called Custom Choice UL. It offers the flexibility of universal life insurance with the affordable coverage and limited duration of a term policy.
Specified Durations and 5-Year Term Design: Custom Choice UL
Protective Life's Custom Choice UL offers the flexibility to customize the level benefit period to meet your client's needs. Whether you need a 5-year duration for a buy-sell agreement or 7 years for a divorce decree, Protective Life has you covered. You have the option to customize the benefit period with lower premiums for the specified time frame of coverage needed.
We're able to design Custom Choice UL with coverage durations that last anywhere from 5 to 30 years. Even better, your client has the option to continue the policy beyond the specified duration if they decide they still need coverage. Why pay more premiums for longer coverage than they actually need?
Highlights:
- Competitive initial term premiums (5 years, 7 years, etc.) with the option to continue coverage
- Decreasing face amount after the level benefit period if they wish to continue the policy
- Conversion options to Protective’s most competitive products for 20 years up to age 70, whichever comes first
Here's an example of how that might work.
Meet Joe, a 45-year-old executive who wants protection for his family, but knows his daughter's college tuition will squeeze the budget for a few years. Joe purchases a $1,000,000 Custom Choice UL policy with a 10-year initial level death benefit period. Now, take a look at how he can customize his premiums to fit his life and his budget while maintaining the protection and peace-of-mind of insurance. (The stats shown below are for a male, age 45, preferred non-tobacco.)
| Years | Annual Premium | Death Benefit | |
|---|---|---|---|
| Client Customized Coverage |
1-5 | $606.54 | $1M |
| Joe pays less the first five policy years while his daughter is still in college and expenses are high. | |||
| Flexibility Delivered | 6-10 | $910.81 | $1M |
| Joe pays a higher annual premium in years 6-10, now that college tuition is behind him. | |||
| No Surprises | 11 | $732.33 | $556,358 |
| Beginning in year 11, Joe's annual premium adjusts downward again and remains level, while his death benefit amount begins to decrease, as his insurance need decreases. | |||
Your clients also have the option to exchange their policy for a permanent universal life insurance option with a level death benefit and premium amount anytime in the first 20 policy years up to age 70 without taking another medical exam.
That's our look at the Protective Custom Choice UL!
We hope this sales idea helps you show more prospects that they can get flexibility, cash value, and competitive rates.
Have questions or need an illustration? We can help! Call us at 1-800-823-4852 or click here to email our Brokerage Sales Support team.
