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Use IPO To Lower Clients Premium

What if you could offer the lowest premium on any Term or UL policy nearly every time? Would it lead to more business? Perhaps, help salvage a sale?

For years Life Insurance carriers haven’t given their clients the option to payout their death benefit proceeds in any way but as a lump sum payment. However, with new product advancements a few carriers now offer a flexible death benefit payment option than can provide an income stream for the beneficiaries, while significantly lowering the premium for the insured. This is commonly referred to as an “IPO”, which stands for “income provider option” or “income protection option”.

The “IPO” is offered by a few select carriers. This option allows your clients to direct their death benefit proceeds to pay out as a guaranteed annual or monthly income stream to one or more beneficiaries. It provides your clients with complete control and flexibility. Death benefit payments can be structured so that a surviving spouse receives a payment from the policy every wedding anniversary or, say, on a child’s, or grandchild’s birthday. Can you imagine being the recipient of such a payment every year for a 10, 15, or 20 year period? How would it feel if you were the spouse? How about the child or grandchild? A spouse, mother, father, or grandparent will never be forgotten, but what a powerful way to be remembered!

The “IPO” also decreases the current cost of the life insurance by providing graded premium discounts based on how long the income stream pays out. That means your clients pay less. This endorsement is an extremely innovative and cost effective way to hedge against adverse underwriting decisions, where, for example, you quoted your client “preferred” and they came back with a “standard” rating. It can also save a sale where the quoted premium is above your client’s tolerance level. Use the “IPO” to potentially lower the premium and save the sale.

The next time you discuss term insurance with a client, show them how the “income protection option” can provide them with two immediate benefits; first it will give them peace of mind knowing their family will be cared for the way they intended, and second it will help lower current premiums, leaving them more discretionary income while they are still alive!

If you have a client in mind, would like to learn more, or discuss ways to grow your life insurance business, give me a call or send an email.

Let’s help protect more families with the power of life insurance in 2013! Here to help every step of the way!

About the Author: Raymond McMannis is the Vice President of Sales for CPS Insurance Services. He can be reached at: CPS Insurance Services. T: 1-800-326-5433 Ext 101 E:

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