Start with the BTID model: buy enough term insurance for the protection need, then invest the difference separately. Use the policy facts and the client’s needs to test whether that approach fits.
1. What does the family need?
Ask these questions before discussing products.
| Question | Response |
|---|
| If you died tomorrow, would you want your family’s lifestyle to improve, get worse, or stay about the same? | |
| How much monthly income would your family need without you? | $ |
What would need to be covered?
- Debts
- Mortgage or housing
- Income for the family
- Education and other goals
|
$ |
| Based on the needs analysis, how much coverage is needed? | $ |
2. What does the client have now?
Use the full policy, latest statement, and current in-force illustration. Write the page number beside any important answer.
| Question | Response |
|---|
| What kind of policy is it: term, whole life, or universal life? | |
| How much coverage is in force today? | $ |
| How much is the client paying each month? | $ |
| Are there any riders or added benefits? | |
| Why did the client buy it? What did they believe the policy would do? | |
| Does the current coverage match what the family needs today? | Yes / No / Not sure |
If it is term insurance
| Find this | Response |
|---|
| How long is the current term? | |
| When does it renew, and what will the new premium be? | |
| When does the coverage end? | |
| Is it convertible? What is the deadline? | |
| Does it include a terminal illness benefit or other riders? | |
If it is universal life
| Find this | Response |
|---|
| Is the insurance cost level or increasing each year? | |
| What is the current cost of insurance and policy fees? | $ |
| How much of the premium is going into the policy account? | $ |
| How much is in the policy account today? | $ |
| Where is that money invested? | |
| What is the current cash surrender value? | $ |
| Where are the loan rules, and what happens if the account can no longer cover the policy charges? | Page: |
If it is whole life
| Find this | Response |
|---|
| Is it paid up now? If not, when is it scheduled to be? | |
| How much has the client paid into the policy? | $ |
| What is the current cash value? | $ |
| What is the cash surrender value available today? | $ |
| Is there a policy loan? Record the balance and interest rate. | $ % |
| Where are the guaranteed cash values shown? | Page: |
| What is the net death benefit after any loans? | $ |
| At death, is the cash value added to the benefit or included in it? | Page: |
Build the BTID comparison
| Compare | Response |
|---|
| What would the same amount of term coverage cost? | $ |
| What would the full amount of coverage the family needs cost? | $ |
| How much is the monthly difference? | $ |
| If invested separately using an approved illustration, what could the difference become by age 65? | $ |
| What is your recommendation, and what must be confirmed before anything changes? | |
Before replacing anything: complete the needs analysis and required replacement process. Confirm the new policy is approved, delivered, accepted, and in force before the old coverage is cancelled.