Life insurance can help protect the policyholder's family members after they pass and sometimes it even offers benefits to the living. But if the policyholder no longer wants or needs the coverage, they may wonder whether they should sell the life insurance policy. In this article, we'll look at how these life settlements work and who they make sense for. Can you sell a life insurance policy? Selling a life insurance policy to a third party is known as a life settlement. The amount the policyholder receives can sometimes be more than the cash surrender value of insurance, but it's usually much smaller than the policy's death benefit. The policyholder enlists a broker...
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Though selling life insurance lets you earn an unlimited income. In fact, renewal commissions can also create an annuity for you. Read how by clicking here. However, the dropout rates of insurance agents are quite dismal. As per reports, only 1 in 3 insurance agents complete 10 years in the insurance business. This makes the failure rate of insurance agents 67% as only 33% of the empaneled agents remain active in the field ( reference article by: The Times of India ). That is why insurance companies focus on agency retention because they know that the agency channel is their primary source of revenue. Have you ever wondered the reason for such high dropout rates? After all, insurance...
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With many Americans struggling to meet their retirement income needs, it is unfortunate that valuable assets may not be properly utilized in retirement planning. Assets like home equity and life insurance are often neglected in the planning process despite being some of the most valuable resources that retirees have in retirement. While neglecting home equity won’t cause the value to lapse, life insurance could, leaving thousands or hundreds of thousands of dollars on the table due to improper planning. The total amount of life insurance that lapses due to nonpayment of premiums or is surrendered or cancelled by older policy owners is extraordinary. A 2012 joint study, U.S. Individual...
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Woolworths Insurance has apologised to a 51-year-old disability pensioner after she was sold over the phone a life insurance policy she did not fully understand, didn’t need, and couldn’t afford. Cramond conceded that Woolworths Insurance could have handled the case better after the insurer initially rejected the complaint by Jane’s family that the policy didn’t consider the disability pensioner’s low income, ABC reported. "We've reviewed the unique circumstances of the case and resolved the complaint directly with the parties involved," Cramond said in a statement. "We're committed to the responsible provision of financial-services products and treat...
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Changes to life insurance commissions may reduce the incentive for advisers to churn customers through policies. The proposed changes to commissions for selling life insurance may just tip the system back in favour of the customer. For years paying life insurance advisers by commission was not seen as a conflict of interest, even when it incentivised bad advice and continuous changing of policies. The changes will reduce the incentives for upfront commissions and allow better monitoring of the cost of the policy relative to the commission, however there is still no legislative cap on total commissions payable. Problems with the current system Life insurance covers death, illness, injury and...
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South Africa has a high and growing rate of youth unemployment, leaving many recent matriculants and graduates scrambling to seize whatever work they can find. But this  can leave them open to exploitation. NATHI VILAKAZI (25), originally from Ladysmith in KwaZulu Natal, told Morwesi Ndlovu how he answered a deceptive job advert and came to sell insurance policies on the streets of Alberton, Gauteng. I dropped out of matric at the age of 19 because of my family’s financial situation and moved to Johannesburg to live with a relative and to try to find work. Since then, I have been working at retail stores in the Johannesburg CBD. Through this I have acquired some customer service...
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Life insurance has one of the biggest market share in the insurance domain. The premiums recorded by life insurer’s globally is reported close to trillions. However, in spite of that, an aggregate amount combining underinsured and uninsured American stands at $20.3 trillion which equals to 60 percent of the current in-force life insurance. Having had conversations with several thought leaders in the life insurance industry, a disturbing general consensus on the the product roadmap, service fulfilment and industry disruption surfaces. More than 90% of industry veterans feel digital engagement is not of any importance for increasing product stickiness. Customer protection is not an immediate...
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In Africa, insurance has traditionally been a preserve of the rich. Most poor people have no safety nets and therefore risk losing everything in the event of serious illnesses, accidents, sudden deaths in the family or damage to their property. But the widespread use of mobile phones and the success of mobile money are enabling development of innovative products targeted at low and middle-income earners. MicroEnsure, an insurance provider focused on Africa and Asia, serves more than 15 million people in 17 countries. It offers ‘free’ and low-cost insurance cover in partnership with other organisations, including telecom operators, microfinance companies and co-operatives. The company was...
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For many P&C insurance agencies life insurance is something you may bump into from time to time when someone asks you to deliver a quote. But for most, mainly P&C agents, they leave a lot of money on the table by not having the intention or the right process to include life insurance into the new business or renewal review strategies. In this blog we will help outline the problem, determine how to have an intentional process that includes life insurance and provide some talking points for you to share with your team. Why Is Life Insurance An After Thought For P&C Agents? Life insurance is the perfect additional policy for any P&C insurance client. There are so many upsides...
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How to Sell Your Life Insurance Policy Whether you find yourself in a financial emergency and need cash or simply can’t afford to continue to pay your premiums, if you are 65 or older or have a terminal or chronic illness, you may be eligible to sell your life insurance policy in a process known as a life settlement. How Much Will You Receive from a Life Settlement? It’s hard to calculate exactly how much you’ll receive from a life settlement. Companies decide what they are willing to pay by considering how much the policy is worth and how much they‘ll have to pay in premiums (calculated by multiplying your life expectancy with your premium rate). Generally, you can expect to receive...
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