Feeling discouraged about presenting a rated term policy to your client? Recently, we assisted a broker whose client was facing high premiums on a rated term policy. By utilizing Guardian's Table Shave program, in this unique circumstance we were able to provide a much better solution – offering both cost savings and potential long-term value for the client.
Case Overview:
Our producer's client, a 45-year-old male seeking a $2.5 million death benefit, was rated Class 4 by multiple carriers. The producer presented the rated quotes, but the client was hesitant to proceed. Let’s break down his options with an example.
Client's Term Options:
To better meet the goals of the client, we explored a Guardian Whole Life-Term Blended Policy using our Table Shaving program. With Table Shaving, we were able to move his rating from Table 4 to a Standard Nonsmoker and here's what we found:
90% Term / 10% Whole Life (31st-Year Death Benefit Reduction)
The point is that after 30 years the term policy is essentially done. With the whole life blend, there is both cash value and a death benefit beyond year 30 as long as the policy remains in force - and in this case, for a lower premium! So, the client can offset the premium after 30 years and keep a lower death benefit with no additional out of pocket premiums or the client could decide to continue paying premiums to grow the death benefit further. Or the client could surrender the policy and receive the policy cash value.
This example is for educational and illustrative purposes only. Life Insurnace is subjected to underwriting and individual situation will have varying outcomes. The whole life term blend has a guaranteed whole life premium and a non-guaranteed term premium. Cash value is based on non-guaranteed dividends. Guardian has paid a dividend for over 155 consecutive years.
7397550.1 Exp 12/26
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