The premier brokerage general agency designed to help you provide your clients with the Excellence, Expertise, and Professionalism they deserve.
Agent Term Store
Our new process is as easy as ever. Get your term quotes from a broad array of top, competitive term carriers and submit a “Simple App” for your client. No more applications to complete! We will contact your client to complete the full application and schedule their exam. And, we’ll keep you updated throughout the entire process.
Our Drop Ticket allows you to submit your permanent life insurance applications on a short form for all your clients who are applying for permanent insurance.
We offer full support for a variety of Sales Concepts including Policy Review, Maximization Strategies, Life Insurance as an Accumulation Vehicle, Estate Tax Planning and more.
Policy Review Program
Our Policy Review process is the easiest one available for both you and your clients. We’ll help you generate new sales! Our program reviews your client’s life insurance at no cost or obligation. And it’s a WIN/WIN end result for YOU! With the hundreds of cases we have reviewed, over 50% of them resulted in a recommendation that improved the client’s life insurance portfolio.
The Team at RMIN makes my life easy! They have always been responsive and detail oriented to my requests. I can’t think of an organization that does what they do better!Mitch MichenerOne stop HELP – best back office around!Tom Stich
– Aaron Putman
Rocky Mountain Insurance Network is a network of caring professionals that has enhanced my ability to do what I do. Their team works well and promptly getting me the quotes I need, following up on the details, notifying me of any issues with my business, and getting business issued and paid quickly. They are also on top of the changes in the market-place and provide me with sales ideas and product uses on a regular basis. I am very glad to have met this team and have enjoyed working with them for over 20 years.
– Lincoln Soule
I’ve been happily working with Rocky Mountain Insurance Network for a handful of years now. Being able to plug into their professional experience in the insurance world has been invaluable for me to be able to focus more of my time and attention on my clients’ needs, further skill development in the investment world and proactive marketing efforts for my company. Every person I’ve had the pleasure of working with at RMIN has been friendly and helpful. Most importantly, my clients have been very happy with the insurance solutions we are able to bring to them. Thanks RMIN!!
– Rob Harris
Term life insurance is used for a variety of different reasons. At its core, however, it offers inexpensive coverage in the event of the unthinkable, providing your clients’ families and businesses with a large payout for a specified duration. These durations are most commonly 10, 15, 20, 25, and 30 years. Those durations, coincidently, also correspond with common loan amounts people would use for either their mortgage payments or their small business loans. Let’s explore a creative and cost-effective way to help your client pay off their house in full should anything happen to them during the course of their mortgage agreement. Let’s take a look at term life layering.
Simple Term Insurance to Protect Your Client’s Home
Mortgage loans are often either 15 or 30-year notes. Mortgage protection insurance (not to be confused with primary mortgage insurance, or PMI, which is often required by the lender in case of default on the loan) is voluntary and covers the outstanding mortgage amount in the event that the homeowner dies.
What would happen if the primary wage earner died and the spouse suddenly had a mortgage payment due next month without the additional income? In today’s hot real estate market, the spouse could probably sell the home quickly and take the equity in the home to live off of for a while, but is this the best option? What happens in the future when the real estate market cools and it takes 6 months to sell the home? Will that spouse and the kids get evicted after a foreclosure? These are the types of questions that your client might not think to ask themselves. This is why they look to you for guidance and consultation. Fortunately, for the savvy broker, there is an intelligent way to layer term life so that addresses these concerns in an equitable way.
In the most obvious approach to solve these various crises, a client with a 15-year mortgage on a $500,000 home that they already put $200,000 down on, could use term life insurance to protect the remaining $300,000 balance by purchasing a 15-year term insurance policy for that amount. This way, should something happen to your client during the mortgage term, the death benefit would allow their spouse to pay off the house, not disrupt the kid’s daily lives any more than is already happening, and provide the breathing room necessary to make it through this difficult time.
Layering Term Life: Protect Your Client’s Mortgage Without Mortgaging Their Pocketbook
Layering (sometimes referred to as laddering) is accomplished by utilizing multiple term insurance policies, with various durations, to cover the mortgage loan. If your client took out a $300,000 mortgage, as in the example above, they would be paying down the mortgage over time. In this case let’s say the mortgage was a 30-year mortgage, instead of a 15-year. As they’re paying down the principal on the loan, they don’t need as much insurance in year 20 as they did in year 5 because they’ve been paying down the loan for an additional 15 years. So…they need to get three insurance policies: a $100,000 10 year, a $100,000 15 year, and a $100,000 30 year term life insurance policy that adds up to the same $300,000 in coverage on day one. Here’s where the math gets fun and where we can really save some money while protecting our clients. If a reasonably healthy, but slightly overweight, 45-year-old man buys a 30 year, $300,000 term policy to cover his $300,000 30 year mortgage, it will cost him about $1150 per year, or about $100 per month. If he were to instead layer the 10, 20, and 30 years, $100,000 policies, it would cost a total of $980 per year, or just over $80 per month. That’s almost a 20% savings each month! And it doesn’t end there!
Term Layering Presents a Tremendous Savings Over Time
Since mortgages are paid out over time, your client doesn’t need $300,000 in coverage in year 15, as they have already paid some of that down. By layering term policies, not only do you save them on the monthly cost of the insurance, but, in the example, we’ve used here, after each 10 year period, one of the term policies drops off, and they no longer need to pay for those, again lowering their monthly cost. In the first 10 years, they need all three policies in place, but after year 10, the 10-year term insurance policy drops off, lowering their monthly payment on the two remaining (20 and 30-year terms) to about $780 per year. And, 10 years after that, the second policy drops off, leaving them only with the remaining 30-year policy (which at this point still has 10 years to go), and again lowers their monthly payment to under $500 per year! Take the total premiums for 3, $100,000 policies that we layered and the total over 30 years would be about $22,500. A more than 35% savings compared to paying for a $300,000 30 year term!
Let’s check out some actual numbers to drive the point ‘home’.
Layered Premium Schedule for Male, age 45 Standard Non-tobacco
|Annual Premium||Annual Premium||Annual Premium||Annual Premium||Annual Premium|
|Total Premium Paid||$1,989.20||$5,810.20||$14,636.40||$22,435.80||$34,740.60|
Term Layering is a Strategy with Wider Applications
I used mortgages as an example here because the term durations offered by the insurance companies align well with mortgage loans. This strategy of layering can be used to fit many financial plans and objectives. Essentially any time-based asset that requires protection can be handled well and affordably with layered term policies. Your clients count on your expertise to help them protect their families and their assets. Thinking outside the box can reveal new strategies that save them money while still offering the peace of mind they need. It is always worth taking a look at how to use any insurance product to make sure that they get the most out of their coverage. Insurance products aren’t one-use propositions. Depending on the carrier, the budget, and the need, there are many ways to use any product to best fulfill the goals of your valued clients. Feel free to reach out to Rocky Mountain to see how you can provide the best possible opportunities for your client.