Buy Term And Invest The Difference

[WinoBlues]

I wouldn't say only, but our country's finances would be a lot better if people purchased more whole life insurance.

Not arguing to the virtues of or against Whole Life. However, I have written term, UL and GUL on some wealthy people that run successful businesses. Of course wealthy is subjective. However, I believe if I had told most of them that I only sell whole Life and if they wanted term, UL or GUL they would just have to go elsewhere. Well, they would have.

Case in point. I placed a nice sized term case yesterday on a farmer that owns everything he has. I offered a couple alternatives last year when we started the app and offered a permanent plan yesterday when I placed the term. He said no thank you. I did not argue, I finished the Bourbon he offered me, put the delivery docs in my case and said thanks on my out the door.

 

[GreenSky]

I did not argue, I finished the Bourbon he offered me, put the delivery docs in my case and said thanks on my out the door.

You really should have sold him Plan N.

Rick

 

[LGilmore]

"However, I believe if I had told most of them that I only sell whole Life and if they wanted term, UL or GUL they would just have to go elsewhere. Well, they would have"

Always easier to come back to a "client" and do more work than it is a stranger. As the saying goes "make them a client first."

 

[Cornelius]

The big problem in the debate is many people can't afford or want to pay the premiums for a comparable face amount WL policy. What seems kind of strange is the BTID debate has been going on since the late 1970's and I have yet to see a study where real people have been surveyed on how the concept has worked for them.

Something else to consider is today the average person shells out all kinds of cash for different things like home entertainment, cell phone, kids activities, etc. No way in most cases do they look 20-30 years down the road. So it's term for now. Anyway that's what the guru's tell them to get.

 

[rousemark]

The big problem in the debate is many people can't afford or want to pay the premiums for a comparable face amount WL policy. What seems kind of strange is the BTID debate has been going on since the late 1970's and I have yet to see a study where real people have been surveyed on how the concept has worked for them.

Something else to consider is today the average person shells out all kinds of cash for different things like home entertainment, cell phone, kids activities, etc. No way in most cases do they look 20-30 years down the road. So it's term for now. Anyway that's what the guru's tell them to get.

Yet, the truly successful, wealthy people from Bill Gates on down have copious amounts or permanent insurance.

 

[Gooner]

Yet, the truly successful, wealthy people from Bill Gates on down have copious amounts or permanent insurance.

Buuuuuut....that's for estate planning purposes...not too many folks need copius amounts of permanent insurance to pay estate taxes on their multimillion dollar estates

 

[WinoBlues]

Yet, the truly successful, wealthy people for whole ll Gates on down have copious amounts or permanent insurance.

Debil's advocate- do you think Bill bought those $100,000s premium whole life policies before he was Kazillionaire or after?

 

[rousemark]

Debil's advocate- do you think Bill bought those $100,000s premium whole life policies before he was Kazillionaire or after?

Some of each.. .. My point is the BTITD guys always say that this way you will have a lot of money and then will not need life insurance.. The truth is once you pass a certain point the more money you have the more life insurance you need. And before you reach that point, you need life insurance becasue you haven't reached it..

 

[Gooner]

Some of each.. .. My point is the BTITD guys always say that this way you will have a lot of money and then will not need life insurance.. The truth is once you pass a certain point the more money you have the more life insurance you need. And before you reach that point, you need life insurance becasue you haven't reached it..

Did you just have the chicken and the egg conversation about insurance?

 

[pfg1]

Fact is most don't invest the difference, they spend it. I did. And to me, I don't care how much the avg person saves up... it doesn't eliminate the need for life ins.

Many moons ago, I was sold on BTID. Well I didn't invest it (though I intended to) I just spent it. And my 20yr term policies expired so I had to put other covg in place at a higher rate. I wish I had know about how to max fund a permanent policy 25yrs ago. I'd venture to say 8 or 9 out of 10 sold on BTID don't actually save it. My guess anyhow.

Permanent ins isn't that difficult of a sale, especially if you design properly. After a couple of years with a well designed WL plan, they basically have all of the premium going to cash each year. So they are technically "saving" at that point by default, but covered with a nice DB if something were to happen.