We're all familiar with the old adage - buy term and invest the difference. But what happens when that term is up and your client still needs insurance? Perhaps they are now rated or uninsurable. With so many carriers cutting back on conversion options, this advice may not work as well as it once did. Even if your client is still healthy, sticker shock from their term premium to a permanent premium (now 20-30 years older) can be a hard sale to make.
What do we suggest instead? Buy low cost permanent insurance guaranteed to age 90 and invest the difference. Since it's a permanent policy, the client has the flexibility to extend the policy to age 100+ as needed without additional underwriting.
Another good solution is a combination of term and permanent. Contact me for other creative ideas on how to find the right policy fit for your clients.