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.

The mortgage protection market has seen a surge in popularity in recent years, but this has come with some challenges. One of the most significant challenges faced by agents is generating fresh direct mail leads. The returns on direct mail have decreased by more than 0.5% per thousand in the last five years, meaning that agents are getting fewer leads for the same marketing spend.

Additionally, the cost per thousand has increased due to the rising cost of postage, and lead houses are taking advantage of the demand, driving up the cost per lead. As a result, agents are under pressure to deliver a perfect presentation to maximize their marketing dollars and close more leads.

To succeed in this challenging market, agents need to focus on their marketing budget, making every lead count, and delivering a perfect presentation that includes a compelling story. The marketing budget should be around 25% of their income, up from the previous recommendation of 15%. With fewer leads to work with, agents must make every presentation count, and every close must be solid. The presentation can be broken down into four segments: developing trust, the pitch, field underwriting, and close. Perfecting these four components is critical to closing more leads.

The pitch is a vital step in the sales process. It is where the agent educates the client and guides them in seeing themselves in the moment when their family is left without them. Assuming the pitch is perfect, the agent moves on to field underwriting. However, they may find that the client will not qualify for a term product to pay off their mortgage. This will happen at least 20% to 30% of the time. How an agent sets themselves up from the beginning will determine their success in closing the deal for protecting mortgage payments.

If an agent's statement to the client is, "...we're not going to qualify to pay off your mortgage, but we do have something else we can do..." then they are done. Anything else they say goes unheard or is heard half-heartedly. One of two things will happen; they were able to push the sale, and the client is sold, or they'll get "...I'll have to think about this."

The most important piece of information needed to pivot to protecting mortgage payments is the client's monthly mortgage bill, including escrow. Asking this question at the beginning when confirming their mortgage amount is critical. It means that when the agent presents the "program" the client qualifies for, they do not need to tell them "you won't qualify to pay off the mortgage."

Just like in the initial pitch, the agent needs to have a compelling story on why covering mortgage payments is just as important. It is the stories they tell that will garner more solid closes where the client buys, maximizing their marketing dollar and making every lead count.

Agents must focus on building trust with clients from the outset. This involves listening carefully to their concerns and addressing them in a way that resonates with them. The pitch should focus on the importance of protecting the family's financial future in the event of an unexpected death or disability. The agent should use real-life examples to illustrate the potential consequences of not having adequate protection.

Field underwriting is another critical component of the presentation. The agent needs to gather information about the client's health, lifestyle, and occupation to determine if they qualify for the coverage they are seeking. If they do not qualify for a term product to pay off their mortgage, the agent must be ready to pivot to protecting mortgage payments without losing the client's interest.

Just like in your initial pitch, you told a story to see themselves no longer being a part of the family unit, you need to have a compelling story on why covering mortgage payments is just as important. It’s the stories you tell that will garner more solid closes where the client buys, maximizing your marketing dollar making every lead count.

In conclusion, the mortgage protection market presents significant challenges for agents seeking to generate fresh leads and close more deals. However, by focusing on their marketing budget, making every lead count, and delivering a perfect presentation that includes a compelling story, agents can succeed in this challenging market. Building trust with clients, perfect.

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.

In the second part of delivering a great mortgage protection presentation we’ll continue with our in-home conversation. The design of this presentation is to provide you with natural shifts in your conversation so you can stop to answer any questions along the way without missing a beat.

Now that you have explained the different goals of having multiple life insurance plans it’s to move into the field underwriting potion of your presentation.