Buy Term And Invest The Difference

[WinoBlues]

Add in GUL and the battle goes on.

I belive also that not all people invest the difference. Some do. Now, do they invest the difference for twenty or thirty years with the sole purpose of replacing the insurance need? No.

Many of my clients will not buy Whole Life. Some are 60 year old business owners. Some are their 30 something kids. They will buy term or GUL. So that is what I sell them. Some will buy combo plans.

Business wise, I grew up in the Whole Life v A.L. Williams days. I fought the fight and won many times. Then I learned that term was not always the wrong answer. So I got very good at competing against the BTID guys on their own field. In that day, it was Jackson National and First Colony, all the way. Just converted two of them from 20+ years ago.

If I can sell permanent, I do. If not, I sell something else. Some other agent that stands on his principals and beliefs that Whole Life is the only answer maybe a better person than I am. I have delivered millions of of dollars in death benefit not once has anyone asked me if it was Whole Life or term.

On the other hand, In the last couple years I have been able to send thousands of dollars (loans, p.surrenders and surrender) to struggling clients from their Whole life and ULs. Or free up premium dollars using non forfeiture options.

So I guess the point is, no one pill cures all ills.

 

[Franz Kafka]

So I guess the point is, no one pill cures all ills.

My experience has been that 95% of the time an employee will prefer a term with monthly payments while a business owner (or a 1099) will prefer a permanent with annual payments. I never try to change their mind. I just steer clear of as many employees as I can.

 

[LGilmore]

As the old saying goes... make em a client first.

Over the years I have learned not to fight it out with the client, just make em a client.

When the day comes that they decide they still need coverage, they get to pay you again.

 

[Insurance-Guy]

As the old saying goes... make em a client first.

When I first got in the business a very successful agent that I have a huge amount of respect for told me the same thing...”make them a client first”


I always look at if I were the insured... I personally have about 2.5 million on myself and around 80% of that is Term Insurance. I always look at the need to figure what is the best policy and not just to write a UL or a WL to write a UL or WL. If you have a young couple that has a couple of kids that are living pay check to pay check and you try to sell them a UL policy it may be great 20 years down the road if everything works out...but if either one of them dies say year 5 and they have a 50,000 or a 100,000 UL or WL policy because that is all they can afford how far is that going to get a single mom or dad raising a couple of kids? I see those policies all of the time written on people and it is sad...I would much rather sell that single mom a 250,000 or a 500,000 20 year term to make sure the kids and the surviving spouse are all taken care of and then worry about trying to convert it later. Now when money is not a problem a combination is the best solution IMHO...a nice UL with a Term rider.

 

[WinoBlues]

As the old saying goes... make em a client first.

Over the years I have learned not to fight it out with the client, just make em a client.

When the day comes that they decide they still need coverage, they get to pay you again.

As someone that works his book. I fully agree. Many of my sales this year were to clients already in house.
Another large percentage were orphans of agents still in the business.
Few had no Insurance prior.

 

[Norwayguy]

As someone that works his book. I fully agree. Many of my sales this year were to clients already in house.
Another large percentage were orphans of agents still in the business.
Few had no Insurance prior.

I don't disagree with you if they say they believe in BTID my next question is when they want to schedule the exam....I just get a kick out of agents that walk in the door and say BTID is the only way to go then pitch a term policy and walk out the door because its not even BTID its buy term and never see me again.

 

[WinoBlues]

I don't disagree with you if they say they believe in BTID my next question is when they want to schedule the exam....I just get a kick out of agents that walk in the door and say BTID is the only way to go then pitch a term policy and walk out the door because its not even BTID its buy term and never see me again.

I am with you on that.

Those love um and leave um "agents" (salesmen) have a special place in my heart. There are two short forms I keep in my case. One is an Authorization to Review and an Agent of Record. If I had to prospect for people with out any Life Insurance I would starve.

 

[100kinssales]

" Buy Term and invest the difference "

If this has been such a wonderful idea why is no one doing so. It all comes down to one word, DISCLPINE.

Why is our savings rate negative? Only one word, DISCLPINE. Why is our nation at an all time low when it comes to net worth? DISCLPINE.

So why should you buy whole life? Only one word DISCLPINE. Whole life forces you to save. As we can tell by our nations average savings rate many need to be forced to save. Whole life will help an undisciplined person to save.

All many ever talk about is ideas that never work in the real world.

" Buy Term and invest the difference "

In the real world is is " buy term and waste the difference. "
So do you have any undisciplined clients? If so tell them about a plan that will make them save.

Good stuff Atlas.

I try to help people see the value in Living Rewards Riders on Term policies as well. It's just like having a savings account and life insurance all at the same time.

I personally have a policy on myself with living rewards rider for the mere fact of disciplining myself to save the extra.

Great post...keep them coming.

Josh

 

[xrac]

Term insurance is great but it should be temporary life insurance instead. Even if one buys 30 year term you are still faced with what do you do at the end of thirty years. The average consumer does not understand that it is harder and more expensive to purchase coverage at age 50 than say at age 30 and health changes the older we become. It is almost humorous when you hear someone 70 years old wanting to buy term insurance because they have been listening to Dave Ramsey when what they are trying to provide for themselves is a final expense policy. That happens more than you realize. All it proves is that they have no clue about what term insurance is and how it is priced.

 

[KJ in Miami]

As long as the term is convertible (Primerica has age restrictions) than it is an option for temporary coverage. But God forbid you do not get a convertible term and get some incurable disease!! If you plan on make money and leaving a legacy, term is not the vehicle to use!!