10 Top Cars Old Folks Buy By

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10 Top Cars Old Folks Buy

DETROIT (TheStreet) — Old people like cars too.

We sometimes denigrate old people, particularly when it comes to advertising, where the common assumption is that this particular demographic group doesn’t buy anything.

Isn’t this why the Lawrence Welk Show had to move to PBS? Because the fear of advertising to seniors, combined with Welk’s 1992 death, scared off the Madison Avenue crowd?

What do they know about music anyway? Probably not a single one of them recalls that Dodge use to sponsor the maestro, who hailed from Strasburg, N.D. A great car, in its day. It’s no longer what it was — but who is?

In any case, a recent study by TrueCar indicates that seniors in America, defined as age 65 and over, “chose vehicles from brands they grew up with.” The study reviewed purchases by more than 200,000 car buyers in 2009 and 2010.

“Seniors are looking for a luxurious and comfortable vehicle from a brand they are familiar with and trust, and many seniors grew up with these iconic American luxury brands in their parents’ garage,” said TrueCar analyst Jesse Toprak, in a prepared statement.

TrueCar.com compiled a list of the top brands purchased by seniors in 2009 and 2010, by percentage of buyers. Topping the list of brands were Buick, Lincoln and Cadillac.

In fact, eight of the top ten cars favored by seniors were made by Ford(F) andGM(GM). Toyota(TM) and Hyundai had one each.

America’s top-selling vehicles — the Honda(HMC) Accord, the Camry, and Ford and Chevrolet pickup trucks — were nowhere to be found on this list.

Read on for the top ten cars favored by seniors.

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No. 10: Toyota Avalon

According to TrueCar.com, 53.7% of Avalon buyers are seniors.

No other Japanese manufacturer has a single vehicle among geezer’s top ten vehicle preferences, although Lexus is ranked as the No. 9 favorite geezer brand. Seniors account for 27.6% of Lexus sales.

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No. 9: Lincoln MKZ

TrueCar’s survey shows that 53.8% of all MKZ buyers were seniors.

Seniors love Lincolns, their second-favorite brand. Seniors buy 47.7% of the Lincolns that are sold.

Lincoln sales surged in July, gaining 40%. Ford analyst George Pipas said one reason for the pickup in sales is that dealers, who formerly sold both Lincoln and Mercury, are now able to focus on the brand.

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No. 8: Buick LaCrosse

The survey shows that 58.9% of LaCrosse buyers were seniors.

Although it has been gaining buyers in all segments, Buick leads all brands in the percentage of senior buyers, with 57.5%. For the first seven months, Buick sales rose 27.2%, leading all GM brands, while the average age of the brand’s buyers is falling.

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No. 7: Chevrolet Impala

The survey shows that 51.3% of Impala buyers are 65 or older.

Chevrolet is the sixth favorite brand for seniors, who account for 31.2% of its sales.

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No. 6: Hyundai Azera

Seniors accounted for 64.7% of Azera buyers, TrueCar said.

Hyundai was seniors’ No. 10 favorite brand, with 25% of sales coming from the group.

Since we must assume that not many of our seniors drove Hyundai as kids, it most likely is price that attracts them. TrueCar said seniors paid an average of $24,353 for their Azeras, second lowest cost on the list. The only other cars with an average price below $30,000 were the Chevrolet Impala at $21,830 and the Buick LaCrosse at $25,732.

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No. 5: Cadillac STS

Seniors accounted for 71% of STS buyers.

The STS had the second-highest price tag on the list, with seniors paying an average price of $39,148.

We think this says that some seniors have big bucks, so advertisers should not turn away.

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No. 4: Cadillac CTS Wagon

Seniors accounted for 74.2% of all CTS buyers.

Here we should mention that 44% of all Cadillac buyers are seniors, making it the third top brand for seniors.

By the way, in terms of brands preferred by old folks, Buick is first at 57.5%, Lincoln is second at 47.7%, Cadillac is third at 44%, Chrysler is fourth at 36.1%, GMC is fifth at 32.4% and Chevrolet is sixth at 31.2%.

The next four brands are imports. Porsche, for sporty seniors, is seventh at 29.5%. Lexus is eighth at 27.6%. Jaguar is ninth at 26.5% and Hyundai is tenth at 25%.

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No. 3: Cadillac DTS

It really seems that Cadillac has something going here, as far as having that old black magic — as Frankie used to croon — back when cars were cars and made of steel rather than aluminum.

Of DTS Buyers, 84.8% were seniors.

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No. 2: Buick Lucerne

The survey shows that 86.8% of Lucerne buyers were older than 65.

One reason the average age of Buick buyers is dropping is that Lucerne production ended in June. Sales of the Regal are also bringing the average down, and sales of the Verano, which is coming in the fall, are expected to accelerate that trend.

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No 1: Lincoln Town Car

The survey shows that 89.6% of Town Car buyers were seniors.

Lincoln has found a couple of niches. We also know that the Lincoln Town Car is the most favored car in the New York limo market, known to insiders as “the black car industry.”

One other point, Lincoln is not only the No. 1 car on the list of senior favorites, it is also the highest-priced car here. The average price was $41,595, making it the only car with an average price over $40,000.

– Written by Ted Reed in Charlotte, N.C.

Life Settlements Beat the Buzzer on Convertible Term

http://www.producersesource.com/financial/life-settlements-beat-the-buzzer-on-convertible-term/

Life Settlements Beat the Buzzer on Convertible Term

About Stephen Terrel
Stephen E. Terrell is Senior Vice President of Sales, Marketing, and Public Relations of The Lifeline Program, a life settlement provider based in Atlanta, Ga. Terrell oversees all aspects of marketing including the P3 Program (Production – Performance – Profit), which enables agencies and agents to build a new market with life settlements, broadening revenue and increasing commissions. For more information, call 770-724-7300 or visitwww.thelifeline.com or follow him on Twitter @LifelineProgram.

For your customers in their 70s with maturing convertible term policies, the clock is ticking down and a life settlement solution might just be the best, last-second shot option available.

Life insurance settlements offer agents the opportunity to help their clients evaluate the dwindling asset value of convertible term life insurance policies nearing expiration.  In the right circumstances, agents earn commissions when policyholders cash out by first converting to whole or universal life, then selling the permanent policies to life settlement providers.

In this scenario, the term policyholder avoids the higher premium costs associated with most convertible policies and receives cash proportionate with the value of the new asset.  Agents earn commissions on the converted policy and again on the life settlement.

In 20 years the life settlements segment has grown to more than $6 billion annually.  Insurance agents are the key to explaining how and why to cash in a life insurance policy.  They hold a wealth of information about policyholders and their personal and family situations.  Settlement providers receive applications, process and underwrite them and prepare settlement offers with sources of capital prepared to purchase the policies for cash.  Term policies are particularly attractive if you draw up a game plan.

Keep an Eye on the Shot Clock

The first step is to review your client portfolio for customers whose convertible term policies are nearing maturity.  Particularly people who purchased major dollar-value policies a decade or more ago face greatly increased premiums to renew or convert.  In today’s economy, coverage may appear less attractive than the cash.  The temptation is strong to simply let the policy lapse at maturity without perceiving any asset value at all.  Your calm coaching at this moment can make the difference between a win and a loss.

Put Yourself in a Position to Win

As you are aware, most, though not all, term life insurance policies are convertible.  If you are typical, you have advised term buyers to pay the slightly higher premium so their policies can be converted in the future and to make sure they remain insurable.  The customers who heeded your advice comprise your potential market and now is the moment your counsel can pay off for them as well as for you.

It’s very likely your older customers are not aware or have forgotten about the conversion option. Among your convertible term policies in force, how many are due to expire in the next few years? Especially if a term policyholder is elderly, sick or not otherwise eligible for a new, permanent policy, then converting that term policy might be the only option for them to keep coverage. Thus, a term-to-perm conversion could be a windfall for your policyholders.

Seniors with at least $500,000 in convertible term life insurance coverage are the most obvious candidates.  However, in evaluating your own portfolio, don’t neglect younger policyholders with shorter life expectancy whose term policies are also expiring.   A life settlement appraisal requires you to prepare a simple application and obtain permission to access the policyholders’ medical records.

Draw up the Appropriate Play

Once again, the basic premise for “term-to-perm” conversion is that the policy be convertible term, within the authorized conversion period determined by the carrier, with a minimum face value of $500,000; and the policyholder over 70 years of age.

If these conditions are met, life settlement presents clear advantages:

• Underwriting from the existing policy typically transfers to the new, permanent whole life or universal life policy, expediting and reducing the complications of the process.
• Cost of conversion is built into life settlement.  All charges including commissions and the initial permanent policy premium may be considered in the agreement with the life settlement partner, so policyholders face no out of pocket costs.
• “Found money.”  Rather than holding an expiring term life insurance policy with high annual costs and little or no asset value, policyholders will have agreed (in advance) to receive a cash settlement proportionate to the value of the newly acquired permanent life policy.  Likewise brokers perceive standard commissions on the permanent policy and a predetermined commission on the life settlement conversion.

Let’s go to the Videotape

Let me cite an actual example:

A 72-year old male with a $1 million, 20-year, convertible term policy was determining his options.  The term was about to end, and the policy would be worthless if he didn’t renew or convert.  The annual premiums to renew increased dramatically – from $5,900 to $59,000 per year.

The agent proposed term-to-perm and created a cost illustration that listed the expenses associated with policy conversion. The life settlement provider computed a potential settlement offer, contingent on the conversion.  The insured paid the conversion premium, then sold the newly converted policy to the settlement company. The transaction netted the policyholder more than $42,000.

The agent turned a non-performing asset into a net gain for the client and earned a fee on the conversion and on the life settlement.  In addition, his client happily referred him to other prospects.

Teamwork is Key in Life Settlements

Once agents have made the decision to offer life settlements to their policyholders, they sign a letter of intent with a settlement partner, undergo training such as Certified Life Settlement Consultant certification, if desired, and begin to contact top priority clients and submit applications.

The cash life settlement offer to policyholders is based upon many factors and priced on a case-by-case basis. Two key factors are policy face value and the insured’s estimated life expectancy.  After you submit an application and your life settlement partner evaluates it, an offer is extended to the policyholder/seller. The offer obviously should provide your client a substantial cash settlement.

The purchasing company agrees to pay the life insurance premiums for the remainder of the policyholder’s life, and, in return, the purchaser is paid the death benefit when the policyholder passes away.

Post-game Commentary

Looking forward, the value of convertible term for younger market segments becomes quite apparent.  Agents with aging baby boomer clients, for example, should be selling convertible term policies as low-cost means to prepare for a future life settlement.

From the agency standpoint, life settlements become an important integrated revenue source.  In addition to the commissions earned, the process opens opportunities for new life insurance policy sales or alternatives such as estate planning with the same clients.

The best professional sports coaches know that success today – more than ever – rests in end-game strategy.  As a professional financial counselor, you should add life settlement alternatives as buzzer beaters in your strategy for elderly convertible term customers.

Related posts:

• Life Settlements Create Golden Opportunity for Boomers and Your Agency
• Life Settlements, Can They Save Your Clients Financial Life?
• A Growing Strategy: Paying for Long-Term Care with Life Policies
• Life Insurance & Long Term Care: Have You Figured out the Puzzle Yet?
• Tackle the Tax Hit by Exploiting the Life plus Life Concept