A. If you know you need life insurance, but the monthly premiums are more than you can afford right now, you can consider the solution from Protective - it’s called “Step Premium Strategy,” and it can help you pay up to 45% less right now. Here’s how it works.
Protective's Introduction of this Strategy to Agents:
Why pay more than necessary for life insurance coverage? With our Step Premium Strategy, your clients can lower their out-of-pocket premium costs in early years (generally when the savings are most appreciated) with the option to pay catch-up premiums in the future. Additionally, stepped premium designs allow clients to maximize Internal Rate of Return (IRR) on death benefit through life expectancy.
Possible Scenarios:
- Current cash flow concerns, with ability to pay higher premiums in the future
- Client who appreciates and understands leverage and the value of IRR
- Trying to present a rated case in a favorable light
- Standard/substandard client with a realistic life expectancy shorter than the typical age 121 guarantee illustrations commonly presented
Solution/Highlights:
- Provide your client with the option to PAY LESS UP FRONT (up to 45% less)
- Maximize IRR through life expectancy
- Why overpay for guarantees he/she won’t need?
- Strong and simple alternative to premium finance
- Great, too, when in competition
- Protective Life BILLS AS ILLUSTRATED. This means Protective will bill your client according to the illustration submitted for policy issue. Protective keeps track of when the premium step-up occurs!
Here's an example:
Male 69 Standard Non-Tobacco; $1M Advantage Choice UL (Guaranteed to age 105)