Buy Term & Save The Rest . . .

[myinsurebiz]

So - Art Williams had the right idea . . .

Could the IUL be the "Invest" part of his old saying - " Buy term and invest the difference" ?

 

[62Dodd]

Buy term and invest the difference works if the person invests the difference and doesn’t touch it. Art Williams had the right idea if overpriced term rates and high commission mutual funds are the best for your customers... You stated in your first post that your customer didn’t want any investment risk and wanted to buy permanent insurance with the “savings” proceeds when the term expires, so investing the difference won’t work, investing involves some level of risk. That is why DHK and myself said do a split term/perm sale now. No investing and no risk. Life insurance is not an investment, it’s an asset!

I smell a rat with an Primerica agenda... I took a look at your profile and it appears you have been on this site for ten years with close to 3,000 posts. The questions you’re asking are basic Life Insurance 101.

 

[myinsurebiz]

Buy term and invest the difference works if the person invests the difference and doesn’t touch it. Art Williams had the right idea if overpriced term rates and high commission mutual funds are the best for your customers... You stated in your first post that your customer didn’t want any investment risk and wanted to buy permanent insurance with the investment proceeds when the term expires, so investing the difference won’t work, investing involves some level of risk. That is why DHK and myself said do a split term/perm sale now. No investing and no risk. Life insurance is not an investment, it’s an asset!

I smell a rat with an Primerica agenda... I took a look at your profile and it appears you have been on this site for ten years with close to 3,000 posts. The questions you’re asking are basic Life Insurance 101.

No agenda - just scoping out things I've never sold or studied.

Since they are only concerned about Final Expenses once Term expires - couldn't they get by with a $25k IUL each?

So - would you run the Term as a Rider on the IUL policy -or- separate?

 

[Markthebroker]

I know you life insurance guys aren't going to like to hear this, but my parents bought life insurance when I was little. They bought term and invested the difference: in real estate. They took some little losses here and there.

If they had bought a whole life or universal life policy, they would have a comfortable retirement.

Because they instead invested properly and intelligently they made exponentially more. They have a retirement that most people fantasize about, the kind of stuff you read about in magazines. I have also invested intelligently and prudently and, well, let's just say I have no complaints.

Now I expect many examples from the life insurance guys of people they have heard of who have invested foolishly that they use as examples to sell expensive life insurance policies. Oh, and by the way, yes I am licensed to sell life, and I do.

 

[DHK]

So - Art Williams had the right idea . . .

Could the IUL be the "Invest" part of his old saying - " Buy term and invest the difference" ?

omfg... *smdh*

https://insurance-forums.com/commun...invest-the-difference-not.92036/#post-1226889

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.

Art Williams did not approve of any permanent life policy. Harder to train agents that way.

IUL came about in the 90's or so.

 

[DHK]

I know you life insurance guys aren't going to like to hear this, but my parents bought life insurance when I was little. They bought term and invested the difference: in real estate. They took some little losses here and there.

If they had bought a whole life or universal life policy, they would have a comfortable retirement.

Because they instead invested properly and intelligently they made exponentially more. They have a retirement that most people fantasize about, the kind of stuff you read about in magazines. I have also invested intelligently and prudently and, well, let's just say I have no complaints.

Now I expect many examples from the life insurance guys of people they have heard of who have invested foolishly that they use as examples to sell expensive life insurance policies. Oh, and by the way, yes I am licensed to sell life, and I do.

Life insurance is LIQUID.

It's not "buy life insurance or investments".

It's "buy life insurance AND investments."

 

[Markthebroker]

Life insurance is LIQUID.

It's not "buy life insurance or investments".

It's "buy life insurance AND investments."

I'm not sure what your point is. That's exactly what they did. BTW, the rent checks they collect are pretty darn liquid.

 

[DHK]

The subtlety was lost on you, but that's okay.

You can buy permanent life insurance... AND use it to buy investments. You can borrow against the cash values of the policy. If that money was locked away and inaccessible, that would be a problem, but since it's accessible, it makes a great asset.

 

[Markthebroker]

The subtlety was lost on you, but that's okay.

You can buy permanent life insurance... AND use it to buy investments. You can borrow against the cash values of the policy. If that money was locked away and inaccessible, that would be a problem, but since it's accessible, it makes a great asset.

Ahhh. Yes, I was missing it. Sometimes I can be a bit slow, sorry. So instead of the real estate investments I bought that made me hundreds of hundreds of thousands of dollars (which my parents have made tens of millions) I could instead have bought life insurance. Then I would have tens of thousands of dollars to borrow from life insurance, instead of the hundreds of thousands of dollars I have borrowed against my real estate for toys, other investments, and business ventures.

Now I understand your math, correct?

 

[DHK]

Nope. And I'm not going to explain it to you.