Subject: Re: Re: Re: Re: insurance selling restrictions

Comments:
: : mr. young, : : thank you for your reply. you touched on several lead generating ides. : : however i was a bit puzzled by part of your response. perhaps you can clarify: : : i didn't say anything abut replacing contracts.however, if, for example, you can save a client money on term life insurance(these rates are very competitive) is that really such a bad thing?none of my clients seem to think so. : : >>>>>Glad to be a form of a free public service to you.>> : : this seems an odd thing to write. is there any reason for you to believe that you would get paid for responding to a question on a public forum? : : : : >>>>I would like to believe that the sponsor of this message board will permit this posting to be viewed as it has been written. : : this statement and request are a little ironic.a short time ago , i posted a question to a web site hosted by someone ken young. i can only assume you are that man. my point is, you first altered my post, then deleted it when i responded asking you why you did that. the next time i tried to view it i found i was banned from that site. : : : : : : i am a licensed life agent in illinois, indiana, and wisconsin, and i have been trying to find out the answer to a question from my state's doi--without any luck. : : : : i would like to use contacts that i have with accountants, mortgage brokers, lawyers,etc. to generate leads. what i am trying to find out is this: : : : : how much, if anything, can i give soemone for a lead if they are not licensed. for example, if i get 50 leads from a mortgage broker can i,and if so, how much, can i pay him for those leads. : : : : i have NO intention of risking my license for a few policies, i just want to know how i can set up this type of deal--if i can at all. : : : : thank you : : : RESPONSE........................ : : : The question you have asked deals with a rule called "REBATING". All DOIs prohibit payments of commissions to non-licensed consumers which would also include a rebate of a portion of the commission you will earn to the person who purchased the policy from you. : : : Most States provide a provision that will allow you to purchase a type of "gift" for a person you sold a policy to. Each State's provisions differ. : : : Example.....If you wanted to give a gift to a person who had puchased a policy from you such as a foldout policy wallet that will hold multiple insurance policies in it, there should not be a problem with that but you need to check with your State's Insurance Codes under a section titled, "Rebating". You will find that your State adopted the NAIC guideline that forbids "Rebating". : : : You life and health license is too valuable for you to place it in "harms way" exposing it to being revoked by your State DOI. : : : If you want to purchase those leads outright that would not be considered "rebating", but if pay a portion of any commission you may earn from them to a non-licensed person you are asking for trouble. : : : If you are interested in working mortgage leads that information can be found at your local courthouse in the County Clerk's Office as soon as the mortgage note has been recorded in public record. The cost of these names and addresses prepared on a list is about ten-cents for each name and address. : : : Generally speaking, in all but a very small percentage of justified replacement of in-force life insurance I could never understand why there are agents and companies that specialize in the replacement of in-force life insurance when courthouse records will provide the names and addresses of those persons who have recently developed a new and/or ADDITIONAL need for life insurance. : : : Couthouse public records are a great tool for finding prospects to contact. Here is some additional ideas for obtaining those persons names. : : : Check out the new building permits issued and you will even find the names of persons who a builder is constructing a home for and beat the competition to the name and address of that person. : : : Family Market? New marriage license applications. : : : Senior Market and Annuities? You can purchase for a very nominal fee the voter registration list which will provide you the names and addresses of registered voters and their age. : : : Business Market? The filing of new DBA (doing business as) applications recording the business names and addresses of the business owners. : : : New Move Ins? Your water utility companies provide those names to your local "Welcome Wagon" so they can not turn you down. : : : With promotions you will usually find an increase in salary. Since life insurance is based upon the replacement of income to meet expenses incurred, check your local Sunday paper. Many newpapers carry a column announcing promotions. : : : There are many other great sources of names and addresses of person's who have recently developed a new and/or additional need for life insurance also. That is why I have a zero tollerance level for the "Replacement Specialist" licensed agents and I could never understand why a licensed agent fails in the business with the proper prospecting training. : : : Afterall, if you are not infront of a person who has recently developed a new and/or additional need for life insurance, you are out of the insurance business regardless of your knowledge of the subject matter. : : : I would like to believe that the sponsor of this message board will permit this posting to be viewed as it has been written. : : : If it appears here giving credit for this information to anyone else I will understand. :) : : : Glad to be a form of a free public service to you. : : : Ken Young : IN RESPONSE TO YOUR INQUIRY TO MY ANSWER TO YOUR ORIGINAL QUESTION................. : First issue.....There is no generic answer to your question that all cash value life insurance should be replaced with lower premium temporary term life insurance. Each individual's person present and future needs for life insurance and their own personal budgets must be examined. : If you are talking about say replacing a high priced temporary term policy with a lower premium priced temporary term policy since there is no equity being built up in either policy, as long as you explain to the client that they must start over again to earn their contestible clause I personally do not see anything wrong with that provided you are comparing exact alike policies. : When a person as an example purchase all twenty-year term life insurance and invests the difference then first the first issue to address is if the insured wants to let the insurance company off the hook with insurance company payments if the insured should die and self-insure with their own money instead of insurance company money. : The arguement against that theory is that the insured with some companies has the right to convert their policy to a new 20-year temporary term policy again. Well, that may be true but then one must ask themselves how much higher will the premium be in twenty years from now. : My experience has been as an example, a male age 35 buying 20-year term will have to pay a lot more premium if he converts his policy to a term policy for twenty-years again at age 55 that will be higher than if he would have purchase a cash value contract when he was age 35 to begin with. : Would you want to start to purchase life insurance when you were age 55 or be forced into self-insuring with your own money. Something to think about, huh? : I have even heard arguements saying that a man at age 55 can now use his side account to pay the increase in the premium at age 55 and the arguement about that then becomes, okay then, not only is his side account in a speculative investment non-guaranteed, if he has to start dipping into that fund then what is he left to live on? : Provide me with a crystal ball that one can look into the future and it will tell me when a person will die, if I was an active insurance agent not retired now no longer selling life insurance but now writing continuing education courses and teaching them from time to time also, I would sell the right type of life insurance to consumers all the time. : I personally think it is not wise to let an insurance company off the hook as death approaches faster as we grown older and have to self insure. Good grief, the whole purpose of owning life insurance is to pay death claims with insurance company money and not put you loved ones into a position they will have to deplete any funds that you have accumulated on your own. : Glad to be of a free service to you again. : Ken Young

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