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More and more insurance carriers are offering Living Benefits built in to their products where an insured can accelerate a portion of their life insurance benefit. Some carriers make it part of their term products while others its part of their whole life portfolio. While working the mortgage protection market these features can be a great selling tool for most any age group.

Almost everyone 30 years and older has either personally experienced or is close to someone who has experienced a family member going through a chronic or critical illness. Understanding exactly what is defined by each will help you close the sale by driving the need.

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.

Today we are going to be talking about four steps that will help you close more life insurance applications in the mortgage protection market. You may find that these steps will also translate into more sales in other markets as well.

I am going to make a couple of assumptions, one is that you have quality leads to work and two, you’ve already set the appointment are ready to speak to your prospect. You also understand that mortgage protection is a one-call close.

1. You’re working a lead from “Joe/Jane” and are assigned to their case.

Many agents who sell Final Expense insurance eventually consider expanding their business by selling Mortgage Protection. At first glance, these two products might seem worlds apart, but in reality, they share more similarities than differences. Agents who are already successful in Final Expense sales will find that making the shift to Mortgage Protection is not just seamless but also a highly profitable decision.

In this article, we’ll break down the key similarities between Final Expense and Mortgage Protection, including the sales process, client needs, product structures, and how an agent can smoothly transition into this market.

One-Call Close Sales Process

One of the biggest advantages of both Final Expense and Mortgage Protection sales is that they follow a one-call close model. Unlike other types of life insurance, which may involve multiple meetings, detailed financial planning, and extensive underwriting, both Final Expense and Mortgage Protection are designed for quick, efficient sales.

When selling Final Expense, agents are trained to identify the client’s need, present a solution, and close the sale in one meeting—whether that’s over the phone or in person. The same process applies to Mortgage Protection. The goal is to educate the client on how the policy meets their needs, address objections, and secure a commitment before the call ends.

If you’ve mastered the one-call close in Final Expense, you already have the foundation needed to succeed in the Mortgage Protection market. The only real adjustment is fine-tuning your approach to fit the slightly different needs of Mortgage Protection clients.

Similar Products with Slightly Different Underwriting

Final Expense and Mortgage Protection life insurance policies are structured in very similar ways. Both provide a lump-sum death benefit designed to help families cover financial obligations after a loved one passes away. However, there are some key differences:

• Final Expense policies are typically whole life insurance with lower face amounts ($5,000–$40,000) designed to cover funeral costs and small debts.
• Mortgage Protection is often based on term life insurance, covering a mortgage balance (typically $100,000 and up) for a set number of years.

Despite this difference in policy type, the sales approach remains the same. Both products focus on protecting a loved one from financial hardship, and both are simplified issue, meaning they require no medical exams and are based on basic health questions.

One key difference is the lookback period for health conditions. Final Expense underwriting is typically more lenient, covering clients with diabetes, heart issues, and COPD with minimal restrictions. Mortgage Protection carriers, on the other hand, may have a longer lookback period, meaning a client with a major health event in the past few years might not qualify for the lowest rates. However, many carriers offer non-medical options with competitive pricing, keeping the transition easy for agents.

Understanding the Client’s Needs in Final Expense vs. Mortgage Protection

The biggest shift when moving from Final Expense to Mortgage Protection life insurance is in understanding why the client is buying the policy.

• Final Expense Clients are often seniors who recognize that their family will struggle with funeral costs and leftover debts. Their main concern is ensuring their children or spouse aren’t left with a financial burden.
• Mortgage Protection Clients tend to be younger (ages 30–60) and are actively working. Their concern is protecting their home and family in case of unexpected death, disability, or job loss.