Life insurance is the cornerstone of any insurance package and not surprisingly, there is an extensive array of coverage types on the market today. The challenge for any insurance agent is to provide customers with insurance offerings that combine effective coverage with attractive pricing. This becomes all the more challenging when dealing with older customers. As the “baby boomer” generation moves ever closer to retirement, it is more important than ever to be able to effectively meet the insurance needs of this customer segment. Morstan Plus, Inc. can effectively help you meet the needs of older customers with the following product offerings:
This policy provides a death benefit but no cash build up or investment component. The premium remains constant only for a specified term of years, and the policy is usually renewable at the end of each term. While most any term is available Morstan Plus has chosen to focus on 10, 15, 20, and 30 year terms. We have these terms to be most useful to policyholders. Term life is a great no frills insurance value. Let Morstan help you choose Term Life options for all your clients.
In contrast to Term Life insurance, Universal Life insurance provides a powerful, flexible insurance and investment product. With this policy the holder can maintain coverage at any age. This is sure to appeal to the large market of elder consumers. Additionally policyholders can build cash value – a feature that will appeal to all consumers.
The cash value accrued is usually a portion of the premium. Premiums are adjustable and typically increase as the policyholder ages. Policyholders are provided the flexibility of varying, within limits, the amount and timing of premium payments and the death benefits. These changes can be made while the policy is in effect. These features are especially appealing to the ‘hands on’ consumer.
The cash value portion earns interest at a rate that is typically determined by the insurer. To cover the reasonable increased risks of the holder dieing, the premiums increases. If premiums are not completely paid, the insurer makes deductions from the cash value portion of the policy.
The Cash Value portion of the policy is not guaranteed, but it is possible the cash value in a universal life insurance policy could outpace than the cost of insurance. In the event of such favorable circumstances, the policyholder typically has a choice as to how these funds are handled:
- Allow the funds to remain in the policy and accumulate interest. Taxes are avoided until the policyholder realizes the cash value. Additionally, future premiums may be reduced
- Funds can be cashed out. The funds are then treated as taxable income and lower the policy's cash value.
Universal Life’s lack of an age limit coupled with its flexibility and the potential to earn cash value make it extremely appealing to all consumers.
While insurance is typically considered a rather conservative area of money management, there is still room both for risk taking consumers as well as fiscally conservative consumers. While Universal Life does not guarantee cash value, Whole Life offers the appealing and tangible benefit of guaranteed cash value. Whole Life will certainly appeal to those consumers who like the safety and certainty of a sure thing. The low risk of Whole Life is reflected in its higher premiums.
The appeal of Whole Life is further enhanced by the fact that this policy never has to be renewed or converted. So, no matter what happens to the policyholder, their premiums will not change. In other words, Morstan enables you to offer your customers the greatest premium of all – peace of mind!
The benefits of Whole Life insurance include:
- Premium levels do not increase with age
- Level death benefit up to age 100
- Guaranteed value
- Relatively high degree of safety