The Latest

There are three tragedies everyone needs to think about: disability, illness and death. Any or all could strike at any time with death being unavoidable. The best option to prevent inevitable hard times is to prepare early so they are not as tough as they could be.

This is where selling Mortgage Protection life insurance proves itself as a valuable solution. By covering a family's most valuable possession, it can bring peace of mind. Policy owners or beneficiaries can receive lump sum benefits or monthly payments that protect against the financial devastation that the unexpected loss of income will bring.

Since the mortgage bubble of 2008 the Mortgage Protection market has been steady increasing providing a great opportunity for life insurance agents looking to either get back into the market or start selling in this market.

There are two schools of thought when considering working leads in this market. The first is working leads with data on current mortgages, meaning those mortgages closed in the past week or data on those mortgages closed six to twelve months ago (aged data). Choosing which one is best for you is another matter.

One the most frustrating aspects for insurance agents moving from Final Expense products to Mortgage Protection products is understanding the underwriting. All of a sudden your cases are being inundated with questionnaires, table rated, or worse declined. In fact this frustration has led many agents to leave the industry altogether as they are battling chargebacks from final expense and declines from mortgage protection.

In the ever-evolving landscape of life insurance, one product stands out as a versatile and powerful tool for securing the financial future of our clients: the Simplified Issue Indexed Universal Life (IUL) insurance. As agents at Legacy Agent, we know that helping clients find the right protection for their mortgage is more than just a transaction—it's about providing peace of mind and financial flexibility. In this article, we'll delve into the benefits of selling a Simplified Issue IUL for mortgage protection, highlighting its cash value features and accelerated living benefits.

The Basics of Simplified Issue IUL

Simplified Issue IUL policies are designed to offer life insurance coverage without the need for extensive medical exams, making them accessible to a wider range of clients. These policies provide death benefits that can pay off the mortgage in the event of the policyholder's death, ensuring that their family can remain in their home without financial strain. But the advantages don't stop there. Simplified Issue IULs also accumulate cash value over time, which can be utilized in various ways to enhance the policyholder's financial security.

Cash Value: A Dual Benefit

One of the most compelling features of Simplified Issue IULs is their ability to build cash value. This cash value grows tax-deferred and can be accessed by the policyholder during their lifetime. For our clients, this means having a financial cushion that can be used for multiple purposes, including:

1. Partial Reimbursement of Premiums Paid: Over the years, clients can use the accumulated cash value to reimburse a portion of the premiums they've paid. This not only provides financial relief but also reinforces the value of their investment in the policy.
2. Paying Off the Mortgage Early: Clients can leverage the cash value to make extra payments on their mortgage, potentially paying it off early. This strategy not only reduces the total interest paid over the life of the loan but also accelerates their path to financial freedom.

By emphasizing these benefits, we can show our clients how a Simplified Issue IUL is not just a safety net but a tool for proactive financial planning.

Accelerated Living Benefits: Coverage When It Matters Most

In addition to the death benefit and cash value accumulation, Simplified Issue IULs often come with accelerated living benefits for chronic and critical illnesses at no extra charge. These benefits can be a game-changer for clients facing significant health challenges. Let's explore how they work:

1. Chronic Illness Benefits: If a policyholder is diagnosed with a chronic illness, they can access a portion of the death benefit to cover medical expenses, long-term care, or any other needs. This benefit provides financial support when clients need it most, allowing them to focus on their health and well-being without the added stress of financial strain.
2. Critical Illness Benefits: Similarly, if a policyholder is diagnosed with a critical illness, such as cancer or a heart attack, they can receive a lump sum payment from the death benefit. This payout can be used to cover treatment costs, replace lost income, or manage other expenses during recovery.

These accelerated living benefits ensure that the policyholder's life insurance coverage adapts to their changing needs, offering financial protection when it truly matters.

The Selling Strategy: Connecting with Clients

When presenting Simplified Issue IULs to potential clients, it's essential to highlight these multifaceted benefits in a way that resonates with their individual needs and goals. Here are a few tips to make the sale:

1. Understand Their Financial Goals: Start by discussing the client's long-term financial objectives. Whether it's paying off the mortgage, saving for retirement, or ensuring their family's financial security, understanding their goals will help you tailor your pitch.
2. Explain the Flexibility: Emphasize how the cash value component of the Simplified Issue IUL provides flexibility. Clients appreciate knowing they have options, whether it's reimbursing premiums or accelerating mortgage payments.
3. Highlight the Health Benefits: Many clients are unaware of the living benefits that come with these policies. Make sure to explain how chronic and critical illness benefits can provide financial relief during difficult times.
4. Use Real-Life Scenarios: Illustrate the advantages with real-life examples. For instance, share a story of a policyholder who used the cash value to pay off their mortgage early or another who accessed critical illness benefits to cover medical expenses.
5. Show the Numbers: Provide a clear, easy-to-understand breakdown of how the policy works, including the growth of cash value over time and the potential benefits of accelerated payments. Use visual aids or online tools to make the numbers come to life.

Conclusion: A Path to Financial Security

As agents at Legacy Agent, our mission is to guide our clients toward financial security and peace of mind. Selling Simplified Issue IULs for mortgage protection is an excellent way to fulfill this mission. These policies not only provide a death benefit to safeguard the family home but also offer cash value accumulation and accelerated living benefits that enhance financial flexibility and security.

By focusing on the dual benefits of cash value and living benefits, we can show our clients how a Simplified Issue IUL is more than just an insurance policy—it's a comprehensive financial tool that adapts to their needs and supports their goals. Let's empower our clients to take control of their financial future with confidence and clarity, knowing that they have a trusted partner in Legacy Agent.