Change The Perspective with Protective's IPO
Published on 07/31/2018

Change The Perspective: Use The Income Protection Option

Protective Life has something unique to the industry, the Income Protection Option (IPO).  With the IPO, a portion of the death benefit is paid out over a specified amount of time.  The payment amount is guaranteed and it may be scheduled annually or monthly.

Click here for a Sample Illustration. For this example, we see a 35yr old male, preferred nonsmoker and fact-finding tells us he earns an annual salary of $60,000.  He has 30yrs left to retirement giving a total, lifetime earned income of $1.8 million.  By design, we solve for a premium providing a guaranteed lump-sum death benefit of $500,000 and a guaranteed monthly income stream of $5,000 for 30 yrs--or $1.8million.  The result solves the immediate need for cash at death and provides heirs guaranteed income  for 30yrs.


Two buckets of money-

Bucket 1 has $500,000 lump-sum tax free death benefit

Bucket 2 consists of $1.8 million, paid out monthly over 30yrs

Gross payout $2.3 million

Monthly premium $88!


By changing the client perspective about life insurance to income replacement insurance, you work backward into a sale.  Call us to learn more or to see Protetive's IPO on your next term case.


Market facts from LIMRA:

  • 80% + of all term applications are income replacement
  • 70+million families admit they need more insurance coverage
  • 40% with household income over $100,000 say they would be in financial difficulty in 6 months
  • 70% go to the internet for information
  • 25% go to the internet to buy
  • Most overestimate the cost by 300% - 500%
  • Most want professional help