COI Increases

COI Increases!

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. These COI increases are causing financial advisors and policyholders to look at alternatives to paying premiums on life insurance, including Life Insurance Settlements. 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 and Life Settlements are starting to become a main go-to option. Getting the Cash Surrender Value of a Life Insurance plan for a client can change their life and experience with their dedicated life insurance agent.

Informed life insurance advisors can turn some COI increases into a commissionable event.

A Proactive Approach

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 life insurance, or more specifically, 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 life insurance policy was originally issued. You may be doing your disenchanted client a huge favor by introducing them to one of our many life settlement options, including whole term life insurance settlements and Viatical Settlements.