Best Way to Sell Against Whole Life?

[vurtle]

Okay,
I skipped the last two pages so this may already be pointed out. I also may confuse those who struggle with math or logic. No offense meant. This is in reference to the original post of a couple with only 50000 whole life. Let's assume one of them died 30 years from now. That amount would actually only be equal to what we think of 17,000 dollars being worth currently. Why? Inflation! Sounds like they got screwed. And that is being modest. Same goes for most whole life policies. Again, no offense meant.

The actual value of what a permanent life would be worth in 40 years is not very good compared to what you paid in based on the current value of the dollar. It would be the same as someone getting 50,000 of coverage 30 years ago (which was thought of as a lot of money) and now it is not really worth squat.

So because people are not even considering inflation when they make their decisions on how much they need, they will probably be disappointed later no matter what you sell them.

Also life policies should be incredibly simple for the buyer and the agent to understand. Most people can't even tell you the details of what they just bought or sold. KISS

My guess also is that inflation is probably going to skyrocket with the screwballs doing math in DC currently. Which means my current life policy is gonna really suck for my family when I die.

 

[LGilmore]

"No offense meant. This is in reference to the original post of a couple with only 50000 whole life. Let's assume one of them died 30 years from now. That amount would actually only be equal to what we think of 17,000 dollars being worth currently. Why? Inflation! Sounds like they got screwed. And that is being modest. Same goes for most whole life policies. Again, no offense meant."

Absolutely none taken. I understand you probably haven't seen enough whole life to understand that you statement is easily countered by my annual statement from my whole life policies. You see, I use the paid up additions options and the death benefit grows over time to reduce the impact of what you're talking about.

I suggest you study the mutual companies and see how their WL products work before you discard WL as an option. Heck, I can even reduce my cost over time by changing the dividend election.

As far as the KiSS idea, yup. However that doesn't mean the agent should be simple, the agent should have a good working knowledge of all products and then have the ability to explain how each works in terms the client can understand. If you only want to deal with simple ideas, how will you ever grow as an agent?

How can you become a resource for your clients if you aren't taking the time to learn?

 

[MikeLentini]

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[LGilmore]

You know Mike, Al is not the only one to think you're a bit racist. Don't you have a cross to burn on somebody's lawn somewhere?

What really does your story have to do with anything, except a display of your character?

 

[MikeLentini]

I have no idea what you are talking about??

 

[vurtle]

LGilmore, you are correct. I am new to the business. I spend a lot of time in this forum and trying to learn TL vs WL vs UL vs all the crazy options included. (This is an awesome forum by the way) My big thing I am trying to learn is why whole life is good. Call me a dave ramsey robot, I kinda am. I definitely lack the experience in this field and I don't have a client older than 45 yet. I am still on the fence, but I haven't been convinced yet on WL.
I am a big believer that people should plan for retirement, but I am not blind to the fact that most people fail to do so. Therefore, leaving them wishing they had bought WL.

I am also not 80 looking backwards at things I should've done. The whole hindsight 20/20 bit. So I know I have a lot to learn.

Thanks for the reply.

 

[NMFNMDRT]

I sell lots of whole and term life to families. If the agent was competent in the least he/she would sell death benefit.

The best thing you can do is add to it.

 

[HealthGuy]

Oh Gawd, keep propping up WL, blah blah blah

 

[LGilmore]

"I have no idea what you are talking about?? "

Then why did you delete your post?

What's your deal besides being crass and offensive?
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NOTE two posts merged together. top part is to a different person than the bottom response.


"I spend a lot of time in this forum and trying to learn TL vs WL vs UL vs all the crazy options included"

GOOD! Each product is useful to somebody for different reasons. It's smart to know how each works. When you forget to go over the different products with a client, somebody else won't.

The biggest failure of Dave Ramsey or Art Williams before him is the simple idea of what if you're "wrong"?

The concept of not needing coverage after 20 years is great, if the stars aline and everything works perfectly. But, I gotta ask, how often is that? How many people have the same health they did 20 years ago?

20 years ago I was a perferred risk and purchased my wl coverage. At first it sucked cash valuewise. Around year 10 started seeing it work. Now, for every dollar in premium I put in, I get more than two dollars back in cash value growth. It's working and working well for me.

But the coverage is important in another way. When I bought it, I was a 6'7" 245lbs badass rugby player. Now I am a 50 year old 325lb. hypertensive diabetic that takes 5 meds twice a day. What table would I fall into now? Certainly not anybody's super preferred class. Maybe a table 6 or 8 or a decline? What would my costs be for term? Instead, I am paying the same rate I did 20 years ago when I started, getting two bucks growth for every dollar put in and my death benefit grows each year.

Some extra bonuses have been the ease of getting money out (and putting back in) when needed without having to produce two years tax returns and having to explain my schedule C to some banker. If I need quick cash I have six figures available to me with a phone call.

Also with two kids going through college, I found the one thing you don't have to declare for FASFA is the cash values of your life insurance. 401k, investments, properties, home all have to be given so they can determine your parent contribution. Not having to declare a six figure balance is sweet.

And then it simply comes down to the million dollar question.."how long are you going to need insurance?"
For me, it was all the way. Comparing the situation over time, a long time, WL made sense to me. So far, I have not been disappointed.

The biggest thing for you as a new agent is simply "get the client". Show them every option, talk about the pros and cons, but make client out of the deal. It is much easier down the road to help a client make a conversion, and you get paid again.

My answer isn't for everyone, and that's OK. There's more than one way to go.

 

[MikeLentini]

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