Most insurance agents already know that several major life insurance companies have announced increases to the Cost of Insurance (COI) charges on some of their in-force universal life insurance policies. The owners of those policies may be facing much higher premium requirements than they expected and or the performance of the policy will not meet original projections. Writing agents are now fielding calls from unhappy clients.
Informed advisors can turn some COI increases into a commissionable event.
Identify affected clients and call them first. A potential solution to COI increases on an elderly clients life policy is a life settlement. A life settlement is a cash settlement for an existing life insurance policy for someone over age 65. Life settlements are especially powerful when the need for, or financial circumstances, have changed since the policy was originally issued. You may be doing your disenchanted client a huge favor by introducing them to the life settlement option.