3 Questions to Consider When Selling a Guaranteed Death Benefit Plan

  • Originally published February 2, 2011 , last updated May 24, 2016

When determining which product best suits your clients who are looking for guaranteed death benefit coverage, consider these three questions:

  1. Is the client concerned with guaranteed death benefit only?
  2. Does your client want the lowest cost guaranteed coverage?
  3. Is cash value growth a concern?

1. Guaranteed Death Benefit Only

North American's Custom Guarantee is a fixed universal life insurance product that can work best when your client’s goal is to have low-cost guaranteed death benefit coverage. Custom Guarantee can provide a guaranteed death benefit all the way to age 120! You may also consider this product for guarantees for older age clients, like if you have a 60-year-old looking for a 30-year death benefit guarantee. Unlike North American, many other term or universal life products on the market do not offer 30-year death benefit guarantees at age 60. Overall, Custom Guarantee can be your product of choice if a guaranteed death benefit is the ultimate goal!

2. Lowest Cost Guaranteed Coverage

Custom TermGUL functions similarly to the Custom Guarantee, so sometimes it can be confusing to determine when to use one product over the other. Custom TermGUL can work best in scenarios where you want a guaranteed death benefit and some cash value growth. In order to guarantee the death benefit on this product the Premium Guarantee Rider must be elected at policy issue. With the addition of the rider this product will to provide the best of both worlds: guaranteed death benefit and cash value growth. The option to accumulate cash value in the policy could be important to clients who may want an exit strategy down the road, where they may take away some cash value from the policy upon surrender. Plus, the ability to obtain guaranteed death benefit coverage to age 100, which automatically guarantees coverage to age 120 with no additional premium payments, is another outstanding benefit of this product.

3. Cash Value Growth

North American's Guarantee Builder IUL can also be a great solution for those clients looking for a guaranteed death benefit and cash value growth. Guarantee Builder IUL is different from Custom Guarantee and Custom TermGUL in the manner in which it accumulates cash value. With an IUL product the client has the opportunity to utilize various index options, which may provide even greater potential for long-term cash value growth. Guarantee Builder IUL also allows the client the control and flexibility to guarantee the death benefit up to age 120.

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