Best Way to Sell Against Whole Life?

[bobson]

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!

Nope. Most people screw themselves. Heck, we only have to look to our politicians to see the mess we've created.

I'm curious, are you suggesting we should quit the insurance business because we can't save everyone?

 

[bluemarlin08]

I'm curious, are you suggesting we should quit the insurance business because we can't save everyone?

Absolutely!!!

 

[Mark]

Great Post AL3 !!

I can't scream it loud enough to stay in contact with you clients at least each year.

 

[LGilmore]

"Just wait another 10 years."

And if you're wrong? what then?

"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."

But will it be up when it's YOUR turn?

"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."

Really? You're that certain?

"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. "

And with that regulation comes a flatening of returns as the government seeks "safety" for investors. Return is based on risk, if you reduce or eliminate risk what normally happens to returns?

"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."

And you're doing what to make sure that doesn't happen?
Reread my post you went after, what am I doing? Spreading investment choices with different degrees of risk around so I have the ability to wait on liquidation of selected investments, while at the same time reducing debt so I don't retire what color? RED.

My comments about my WL are true, they haven't disappointed nor have they gone backwards. It's a safety net. Just as I described it. It's the "what if I Fup? plan." What will still be there or what can I tap if needed? Have you ever considered into your planning or your professional advice the possibility of being wrong?

" Like I said, in the future the government will be there to protect us. Just you wait for all the new regulations!"

Protection means reduction of risk which equals lower returns so how does that improve your BTID approach when your pure investments are regulated into safer WL returns?

"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! "

Go ahead and take your couple of days, you may need them. The states have done an exceptional job of staying ontop of the industry, unlike the SEC which recently allowed what a 50 BILLION dollar ponzi sceme to take place and so far have made a house arrest of the criminal? I know my state OIC is a pain in the ass to insurance companies quick to fine for lack of timely reporting, quick to head off problems. So I can't agree with your statement at all as it lacks merit and is more knee jerk than accurate.

"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 fngers even typing those words..."

That's too bad, I'm sorry you are offended by my quasi-advice. It works for me. It's part of my investment portfoilio and I don't regret the purchase.

I have lived through many investment cycles and at times really struggle with the certainty of which you speak. Because what you're saying isn't "new" it's just rehashed and repacked every 5-10 years. The benefit I'm seeing is that most people following that advice from 30 years ago are some of my best customers now, because it didn't pan out or wasn't quite right.

I hope your plan pans out for you 20 years from now, but if you're wrong or off 30% or so, what ya got to compensate? or is it just balls in? What's your "If I Fup plan?" or have you ever given that a second thought?

 

[BiggitySwat]

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.

Strange on how you want your clients to rest assured with the SEC/FINRA - the same SEC that is busy stripping the licenses of stockbrokers who forgot to cross their "Ts" on a securities app while Bernie L. Madoff defrauded investors and Jewish charities of over $50 billion dollars? No thanks....I'll rely on my state thank you.

Just you wait for all the new regulations!

If you're referring to SEC 151A which will water down Fixed Indexed Annuities and hurt both consumers and agents.....I won't hold my breath. Everyone in the securities and insurance industry knows 151A is not about protecting consumers but about FINRA being upset about losing money to the insurance industry.

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.

You couldn't be more wrong. Please educate yourself about entities called "State Guaranty Assocations" Guaranty Associations

Also, if you're an agent, why would you want to sell insurance for Wiley's Insurance Shack when there are bulletproof multi-national companies out there like AVIVA, ING, and Old Mutual?

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'.

Actually, according to Barry Dyke, a financial planner with 25 years of experience and author of the book "Pirates of Manhattan," Citigroup's Whole Life insurance cash values have surpassed the performance of many mutual funds, especially after fees are taken out:
The Pirates of Manhattan, The Financial, Investment, and Asset Management Secrets They Don't Want You To Know!

So far your entire post has been factually wrong from both an insurance and securities standpoint. You sound like a 19 year old community college dropout who barely passed his insurance license and now is spouting garbage propaganda for your MLM slave-masters at NAA and Primerica. It's advice given by people like you that reduces consumer confidence in our profession and adds craveness to the industry.
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I know that my credibility about selling insurance (and on the industry as a whole) here on this board is considered by you younger guys as the ramblings of a stupid old man, so believe what you want... BUT PEOPLE REALLY APPRECIATE THE CALL.

None of their service providers do that... not their CPA, not their lawyer, not their hairdresser, not their P&C agent, not their payroll agent, not their credit card machine agent, sometimes not even their own kids!

I want to reiterate this point made by Al for the newer folks (and even the experienced producers). This business is about relationships, not numbers. Case in point: you may have run into prospects who don't want to leave their financial advisor or insurance agent, even if the numbers show that they are getting screwed. Emotion trumps logic 80% of the time.

With that being said, I called every one of my clients during the apex of the financial crisis (October) and again to wish them a Merry Christmas in December. Every single one of them really appreciated the call and some of them admitted that they were glad to have me as their financial planner/insurance agent versus anyone else in the community.

I asked some of my clients who else had called them to wish them a Merry Christmas. Would you be surprised to know that with some of my clients, I was the ONLY one who called to wish them a Happy Holidays?

Don't you think they will remember these acts of consideration and kindness when telling their friends about their shiny new insurance policy or securities account?

In my area, there are a few lawyers I know of who give "Checkup" calls like Al described earlier. Then, there are even fewer CPAs and stockbrokers.....and at the bottom of the list, insurance agents.

People do business with people they like, respect, and trust, with an emphasis on "LIKE." By calling your clients at least quarterly and sending them birthday and Christmas wishes, it's a great (and cheap) opportunity to prove to your clients that you're different from 90% of the competition out there - competition which often sees their clients as account codes and not human beings.

 

[Dave020]

Um, guys, you did get that Bobson was not being serious, right???????

 

[padthaiforlunch]

Yeah, I'm hoping that was a level by Bobson.

 

[Ron Van D]

The Bobson post was clearly sarcasm.

 

[LGilmore]

Well, let's hope he was joking at least now..right?

 

[briko3]

Term is for temporary problems, permanent is for permanent problems. Use WL/UL for burial, etc. that they will HAVE to pay no matter what. Use term for debt or to protect income while kids are in the house, etc.

I was kind of surprised that most people DON'T want term. They all tell me they don't see the sense in paying for years and years and not getting anything in the end.