Basic Questions Regarding Whole Life

[BNTRS]

I'm not sure why you two didn't understand what I wrote. I didn't say "I can't explain it in under two minutes", and I didn't say "you insurance agents can't explain it", what I said is that while most clients will sit there and nod "yes" when you explain a cash accumulation product, they really don't understand it. They understand what you're telling them at that moment, but they don't understand it the way you understand it. Meaning that they don't know all the details that you've picked up at your seminars and through your magazine articles and our CE classes. And they certainly don't understand it 10 years later.

I believe that what most agents are doing whether they realize it or not, is convincing themselves that they've been responsible, when in fact they've simply talked someone into buying something that 90% of the time will be used improperly.

Clients are never going to understand this stuff like we do. I remember first getting into this industry, it took a while of being submerged in this stuff every day before I had my little moment and everything seemed to make sense. I've accepted that no meeting with a client no matter how many hours we take is going to bring them up to speed with me. That's why we are the professional.

If you go to the attorney's office and he recommends a GRAT to you, are you going to attempt to understand all the ins and outs of what's going on?

None of the people I've sat down with who have life insurance in an ILIT really understand why they have it set up that way.

How many people understand what exactly the accountant is doing when he or she pours over our financial documents and files our income taxes? Ask friends or clients to explain the U.S. income tax system, it's quite amusing.

When you go to the doctor's office and he prescribes you blood pressure medicine do you truly understand the mechanics of what's going on when you take that pill?

That's what being an advisor is all about, advising. If you want to help people make purchasing decisions on products that don't require a lot of follow up due to complexity, the financial/insurance industry was a horribly bad choice.
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But there are others on this board that I would definitely put in this category..

Yes, even tough I believe it's extremely limited in scope, I acknowledge it has it's place in the tool box, no matter how cold, dark, and covered in cob webs

(actually as we know, it can be extremely usefull in several estate planning applications)

 

[Guest]

You're both right, and you're both operating in the top 5% of agents. So perhaps I should amend my statements to say "If you're going to commit to all of the follow-up over the years necessary to make sure that you're clients don't get burned by their products". Unfortunately, far too many people are sold these things by hit-and-run agents, or new agents who disappear, or multi-level agents, etc. etc.

 

[VolAgent]

You're both right, and you're both operating in the top 5% of agents. So perhaps I should amend my statements to say "If you're going to commit to all of the follow-up over the years necessary to make sure that you're clients don't get burned by their products". Unfortunately, far too many people are sold these things by hit-and-run agents, or new agents who disappear, or multi-level agents, etc. etc.

Face it, you made too broad a statement and got called out for it. Stop trying to backpedal.

That said, even if you are right and only the top 5% of agents can properly sell UL, is that the fault of UL? If only the top 5% of surgeons can do a particular procedure, is it the fault of the procedure? Or, is it that most surgeons just are not skilled enough to use the procedure?

Don't forget, the client takes a lot of blame in this too. Many refuse to do review with their agent or find a new agent if their previous one leaves the business. Face it, if your doctor retired without transfering you to a new doctor, how long would you wait before you went a found a new one?

 

[Guest]

Gee, you're a gracious A-hole, Volagent.

 

[scagnt83]

Follow ups and yearly reviews are key.
While I do believe that the majority of agents do not do them on a regular basis (or attempt to do them); I do not believe its only 5% of agents.

I know of many agents who do yearly reviews with their clients (or at least attempt to do them).
Its just part of your job. Those who dont are the ones who give the industry a black eye....

 

[dlj2626]

And immediately following that nonesense statement in the next paragraph with:



Juxtaposition, anyone?

You are missing my point. First of all Whole Life and Universal Life are both different types of permanent insurance. Most whole life policies I have sold over the years have a set premium, set face value, set cash value, set paid up amounts, etc, etc, etc. Cannot add money to these policies.

UL on the other hand does have many more features to it and can be alot more beneficial to the client. The premium can be more flexible. However I have only recommended the target premium when talking to clients. Or whatever premium is going to carry the policy out to age 100 or longer. The face value can grow in a UL. Cash Value can also grow, etc, etc, etc. That is why I said, IF, I was going to recommend a product for cash accumulation it would be a UL. But it has to be funded correctly in order to do that. There is a lot more you can do with a UL than you can Whole Life. Make more sense?
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Follow ups and yearly reviews are key.
While I do believe that the majority of agents do not do them on a regular basis (or attempt to do them); I do not believe its only 5% of agents.

I know of many agents who do yearly reviews with their clients (or at least attempt to do them).
Its just part of your job. Those who dont are the ones who give the industry a black eye....

There are several clients out there that do not wish to have annual reviews. Cannot fault the agent for that.