Buy Term and Invest the Difference...NOT!!!

[myinsurebiz]

I've read about AL Williams. Is he the guy that started Primerica? And wasn't Ramsey involved with him at the beginning?

Art started Primerica - but retired quickly . . .

 

[myinsurebiz]

I finished up reading AL Williams autobiography. Despite what you may think of his "crusade" against "trash-value life insurance," the amount of agents he recruited in such a short period of time, in combination with a complete alteration in consumer opinion about whole life, his effect, negative or positive, on the insurance business cannot be misstated.

I was an A L Williams Agent in 1984 or so. Transamerica was the Carrier. They paid current agents to take our Insurance Tests for us. They paid quick but also charged back quick . . .

 

[toolbelt]

The only thing churning faster than their sales force is their policies,and probably for the same reason.

 

[HoosierLife]

I was an A L Williams Agent in 1984 or so. Transamerica was the Carrier. They paid current agents to take our Insurance Tests for us. They paid quick but also charged back quick . . .

This explains SO much haha

 

[scagnt83]

How many don't even keep the term?

Most keep it until the term expires and premiums increase by 500% - 1000%. Then they are screwed because many still need coverage.

If they had bought a smaller WL with an increasing DB, the DB would be decent size by retirement and expiring term wouldnt be a big issue for most.

 

[Todd King]

1) "BTID" never has and never will be a planning strategy. It is a replacement tactic. The complete phrase is "buy term and invest the difference... with me" and it's said by anyone who is competing for those dollars - particularly investment people.

2) It's also completely misleading. It assumes that a person can afford a fully underwritten whole life policy (assuming proper coverage - perhaps it was rarely quoted?) and THEN they are being swayed to buy something else and just buy term insurance. Most people cannot afford to buy their proper amount of life insurance in whole life only.

I like what John Savage said about "AL Williams". Just convert their term to permanent.

But the whole thing was designed more as a replacement strategy than anything else. When A.L. started it, most people owned WL. There was no such thing as UL (which is why I say that A.L. was instrumental in getting ULs started). He new what the insurance companies were doing with the extra money and saw it as a way to do it yourself and come out much better in the end. It is actually a great stratagy...but sadly one that very few people can make/will make work.

 

[HoosierLife]

There's no doubt that buy term and invest the difference can be a good option, but most people forget to invest the difference. I think the article was on replacing term policies sold to Final Expense prospects anyway.

I can say with 100% certainty that a 10 year level Primerica policy designed to pay off someone's final expense is never in the clients best interest. Term is temporary insurance used to fulfill a temporary need.

 

[Todd King]

There's no doubt that buy term and invest the difference can be a good option, but most people forget to invest the difference. I think the article was on replacing term policies sold to Final Expense prospects anyway.

I can say with 100% certainty that a 10 year level Primerica policy designed to pay off someone's final expense is never in the clients best interest. Term is temporary insurance used to fulfill a temporary need.

And this is mostly why we can say that overall it doesn't work. When I was with them, not all would set themselves up to invest the difference. I found myself replacing polices that should have never been replaced unless they were going to do the full program. This is why I got away from them.

 

[nfl72]

You have two buckets.

 

[cropduster]

But the whole thing was designed more as a replacement strategy than anything else. When A.L. started it, most people owned WL. There was no such thing as UL (which is why I say that A.L. was instrumental in getting ULs started). He new what the insurance companies were doing with the extra money and saw it as a way to do it yourself and come out much better in the end. It is actually a great stratagy...but sadly one that very few people can make/will make work.

because no one invests the difference lmao