Best Way to Sell Against Whole Life?

[Mark]

I would never recomend that a client do anyway WL completely for Term. But what I do recomend is maybe reducing the whole life and replacing the difference or more with term if its needed.

For new clients I usually do a mix....I had a family that wanted 300K on husband an wife.

So I did 25K WL and 275k Term.

Sounds good to me. The kids will be gone and the house should be paid off when the term runs out and then they will have the 25k for burial and other needs.

I would make sure to have R.O.P. on the term so that they also get their money back and that money can also help with some other things they might need.

 

[bobson]

Sounds good to me. The kids will be gone and the house should be paid off when the term runs out and then they will have the 25k for burial and other needs.

I would make sure to have R.O.P. on the term so that they also get their money back and that money can also help with some other things they might need.

I'd like to offer an alternative opinion. The kids should be gone and the house should be paid off when the term runs out. But that doesn't make it so. I would recommend converting more and more of the term to whole life as the years progress. Also, adding more term might not be a bad idea. This idea that these people are now set until death with life insurance is short-sighted.

Life is dynamic and changes occur. I firmly believe we owe it to our clients to continue updating their insurance. If not, another agent will.

 

[Mark]

Life is dynamic and changes occur. I firmly believe we owe it to our clients to continue updating their insurance. If not, another agent will.

That is why it is important for the agent to keep in contact with his clients. The clients needs change all the time and you should be there with a new answer for their problems.

 

[LGilmore]

The baby boom generation has also introduced a new term into the mix. Retiring RED. The majority of folks going into retirement are not going in mortgage free or debt free. I can't tell you how many people I deal with who still have a large 6 figure mortgage in hand going into retirement. It's part of the reason we're in the state of economy we're in.

I have people in their 60's still looking to pick up a quarter to half million in coverage because.. well, most theories really don't play out the way we're convinced they will.

Buying term and investing the difference.. how'd that work out?

People and planners rarely ever think about being wrong or not quite right... a permanent policy purchased early in life could be there for old age, paid up and chugging along. While not earning top returns (always debatable) is it a planning "mistake" that can really hurt you? Compared to a expiring term policy and an investment portfoilio that might be down 40% in value right now?

Which hurts more for being wrong? Losing 4-5% return on some money committed to a wl policy or the BTID today?
I guess I would also argue if that money spent on a wl is all you've got to invest, it's probably better in a wl. (difference between wl prem and term prem). (Unless there's company matching involved, then modify as needed)

I do many things for my portfoilio Wl, security investments, real estate etc.. The wl has yet to disappoint me. Can't say that about my securities or real estate which I must continue to hold onto in hope that they recover.

It is funny, but in my years of selling insurance and investments I have always described my wl as my if I F'd up investment. That is no one brags about their WL returns. We brag about our developing markets in China fund, our RIETs and what not... till they tank. What's left after? Our "if I Fup" plan... my WL policy. My boring whole life policy.......
every dog has it's day.

 

[bluemarlin08]

I am curious, what makes one think one will commit to making the WL premiums and not the BTID fund? Experience shows me that most folks surrender their WL, or max borrow rather than keep till death, just my observation. Realistically people don't keep their Wl or BTID!

 

[somarco]

Realistically people don't keep their Wl or BTID!

Exactly!!

 

[Mark]

I keep reading post where it is said that the client won't keep this or that. So why sell it to them.

It's like a doctor giving out meds. It's not his fault of the patience does not take his meds. All he can do is try and give the patience what he needs.

You could say, doctor why write his a prescription, he is not going to take the meds. But the doctor still writes it.

It is true that a lot of clients will not keep what protection we have given to them. But we still have to try.

 

[GreenSky]

I swear that English in the South is a different language, but I do agree with Mark.

Why is it the agent's responsiblity that the client does what is "right?" When I sell an HSA with preventive care, do I have to make certain the client gets a checkup?

I like the idea of ROP even though the client may not keep the plan for the full 20 or 30 years. If he/she does, then I've really helped them. If they don't, it is not my problem.

I can only lead the horse to water. It's up to the government to make him drink. (Sorry, wrong thread).

Rick

 

[bobson]

The baby boom generation has also introduced a new term into the mix. Retiring RED. The majority of folks going into retirement are not going in mortgage free or debt free. I can't tell you how many people I deal with who still have a large 6 figure mortgage in hand going into retirement. It's part of the reason we're in the state of economy we're in.

I have people in their 60's still looking to pick up a quarter to half million in coverage because.. well, most theories really don't play out the way we're convinced they will.

Buying term and investing the difference.. how'd that work out?

People and planners rarely ever think about being wrong or not quite right... a permanent policy purchased early in life could be there for old age, paid up and chugging along. While not earning top returns (always debatable) is it a planning "mistake" that can really hurt you? Compared to a expiring term policy and an investment portfoilio that might be down 40% in value right now?

Which hurts more for being wrong? Losing 4-5% return on some money committed to a wl policy or the BTID today?
I guess I would also argue if that money spent on a wl is all you've got to invest, it's probably better in a wl. (difference between wl prem and term prem). (Unless there's company matching involved, then modify as needed)

I do many things for my portfoilio Wl, security investments, real estate etc.. The wl has yet to disappoint me. Can't say that about my securities or real estate which I must continue to hold onto in hope that they recover.

It is funny, but in my years of selling insurance and investments I have always described my wl as my if I F'd up investment. That is no one brags about their WL returns. We brag about our developing markets in China fund, our RIETs and what not... till they tank. What's left after? Our "if I Fup" plan... my WL policy. My boring whole life policy.......
every dog has it's day.

Just wait another 10 years. The retirees then will be very happy with their BTID strategy. Because we know over every twenty year cycle since 1765 the market has been up. I know past results are not indicative of future results but come on! The last few months must be a once in a lifetime occurance. There's no way this mess could ever happen again. The SEC, FINRA, and the federal government will protect us from the devestation in the future.

Sure we should feel bad about what has happened to today's retirees, but don't throw the baby out with the bathwater. Just because 50,000,000 people are going backwards with no time to catch up doesn't mean it will happen to me. Like I said, in the future the government will be there to protect us. Just you wait for all the new regulations!

WL is a rip-off. Plus you only have state officials guarding the hen house of insurance. We all know state governments can't protect us as well as the feds. There's probably been billions (well at least millions or maybe hundred's of thousands) of dollars that policy holders have lost when insurance companies go bankrupt. I'm sure somewhere someone with a life insurance policy from an insurance company has been wiped out when their insurance company folded. I can't think of any off of the top of my head, but give me a couple days. I'll show you!

So if you want to put money into a pathetic-secure-whole-life policy go for it. But don't drag the rest of this board down with your 'quasi-advice'. And please, please don't mention fixed annuities or (the horror) FIAs. It hurts my fingers even typing those words...

 

[moonlightandmargaritas]

I am curious, what makes one think one will commit to making the WL premiums and not the BTID fund?

Now there's an excellent question!

I suppose most agents would tell you it's because they've got 'em on the bank draft mode.