In a CD, the principal would never be touched ( taken) if she wanted to withdraw early.
Banker's Life on Inside Edition
- Thread starter Daytona_Guy
- Start date
In a CD, the principal would never be touched ( taken) if she wanted to withdraw early.
- 1,641
Depends on the CD...
- 300
Also a lot of IMO's use their product and sell it to Postal employees with a bait and switch tactic.
Would you like to open up a Roth IRA? Okay we can do that with a non-med Whole life policy and an annuity!
I hate Bankers Life!
Would you like to open up a Roth IRA? Okay we can do that with a non-med Whole life policy and an annuity!
I hate Bankers Life!
Last edited:
BrutalHonesty
New Member
- 2
So true .... so very true.
Hey does anyone know what happened to the scam.com website? It's been down for 3 days now.
- 307
By no means am I defending the BLC way of operations, but in comparison, I have seen situations that this BLC caper can't carry the light for.
Six or seven years ago, I was running some final expense leads in Newport, TN and found this 78-year old lady whose husband had sold a Cadillac dealership in Florida. He took his entire $2 million equity and invested it all in World-com. with what they thought was an "honest stock broker". They had financed around the entire $200,000 for their retirement home in TN, thinking the earnings of the World-com would grow much faster than the cost of their home loan.
When he realized his $2 million was suddenly worth around $200,000, he got sick and died. She kept the stock until it was worth around $50,000. She sold the stock and bought a mobile home, but had no money left, and she realize she had no money to bury herself.
She sent in a lead card for Final Expense from which I sold her an $8000 Final Expense Policy. A true "Riches to Rags" 2-Year Story.
Was the Stock Broker ever brought up on "Inside Edition", or chastised for handling a horrible investment for a client ? Probably not. Her husband just made a bad decision on his investment and the stock-broker was only too happy to be part of the transaction.
Would she have been much better off if she had lost 10% per year for her 2 year investment? Most definitely.
"Suitability" investment laws are being thrown at the insurance industry in most every state, but with very little notice what stock-brokerage firms have done to clients. We have one company that will refund all premiums to a client if a complaint is launched (they don't want the problem with the state), even 3 or 4 years into the investment; even if there is no proof the agent has done anything wrong. Wonder why we really do not want our agents selling large annuities to clients without company backup? It is a no-win situation for an IMO.
In most cases, the agent has already spent the commission money and the agent is unable to, or will not pay the commission back. Guess who the chargeback is rolled up to---the IMO. I really don't like the idea of paying back $20,000 on a transaction I have made $2,000 (if that much) on.
Six or seven years ago, I was running some final expense leads in Newport, TN and found this 78-year old lady whose husband had sold a Cadillac dealership in Florida. He took his entire $2 million equity and invested it all in World-com. with what they thought was an "honest stock broker". They had financed around the entire $200,000 for their retirement home in TN, thinking the earnings of the World-com would grow much faster than the cost of their home loan.
When he realized his $2 million was suddenly worth around $200,000, he got sick and died. She kept the stock until it was worth around $50,000. She sold the stock and bought a mobile home, but had no money left, and she realize she had no money to bury herself.
She sent in a lead card for Final Expense from which I sold her an $8000 Final Expense Policy. A true "Riches to Rags" 2-Year Story.
Was the Stock Broker ever brought up on "Inside Edition", or chastised for handling a horrible investment for a client ? Probably not. Her husband just made a bad decision on his investment and the stock-broker was only too happy to be part of the transaction.
Would she have been much better off if she had lost 10% per year for her 2 year investment? Most definitely.
"Suitability" investment laws are being thrown at the insurance industry in most every state, but with very little notice what stock-brokerage firms have done to clients. We have one company that will refund all premiums to a client if a complaint is launched (they don't want the problem with the state), even 3 or 4 years into the investment; even if there is no proof the agent has done anything wrong. Wonder why we really do not want our agents selling large annuities to clients without company backup? It is a no-win situation for an IMO.
In most cases, the agent has already spent the commission money and the agent is unable to, or will not pay the commission back. Guess who the chargeback is rolled up to---the IMO. I really don't like the idea of paying back $20,000 on a transaction I have made $2,000 (if that much) on.
- 300
If you get the investment mix right with a "good" product then there should be no need to refund anything to a client. Bankers Life will refund clients whole life premiums if they ever get a complaint from the client. They will charge the IMO the chargebacks because the client realized they weren't investing in a Roth IRA and they realize how crappy the product they have is. They were sold on making 10-12% over the life of the product, but ended up with something making 4%. I agree with you in that people need to do the right thing and suitability needs to be better understood.
- 17,078
I meet people every day that consider their "stock broker" to be their financial advisor. That guy must have been one bad stock broker putting all the eggs in one basket.
- 307
That is what I thought too, Scott.
But the buyer may have also insisted this was all he would purchase, without going into detail about his finances.
Either way, the poor old sister was almost left out in the cold, but she was still driving her 2-year-old Caddy.
Last edited:
- 15,041
No statistics of course, but I would say there are just as many cases of people doing themselves in versus their insurance agent or stockbroker.
No excuse for being a dishonest or incompentent advisor, but probably get blamed either way.
- 1,641
Forget annuities, sell gold. The commission is 15%, the product is relatively liquid and the historical rates are great!
Even better, you can to sell gold coins door-to-door while running FE and Med-Supp appointments.
Gold coins can even be used in conjunction with IRA money.
Even better, you can to sell gold coins door-to-door while running FE and Med-Supp appointments.
Gold coins can even be used in conjunction with IRA money.
