Cost-saving "No Load" Term Life Insurance??

[scagnt83]

When you call the carrier and purchase a policy direct, do you think that the person you speak to is working for free? They pay the employee on the phone... or they pay an agent... either way the cost is the same for the carrier.

 

[opudipu]

Yes, that's a helpful distinction.

 

[DaKine]

When you call the carrier and purchase a policy direct, do you think that the person you speak to is working for free? They pay the employee on the phone... or they pay an agent... either way the cost is the same for the carrier.

Why is is there so much resistance against people earning a fair wage? Commissions, fees, direct somebody will pay for the value of the service provided.

 

[WCMason]

Can you point me, right now, to a "no load" term life insurance policy that will (by virtue of paying no commissions) result in cost-savings for the buyer?" So, have any of you ever spotted this mythical creature?...if you've spotted this Unicorn, please let me know and tell me where I might find it. I have written one article on this already and I'm working on a presentation right now related to it. I want to be sure I'm not missing something.

Unicorns are fantasy creatures; they don't exist.

 

[DHK]

Why is is there so much resistance against people earning a fair wage? Commissions, fees, direct somebody will pay for the value of the service provided.

Because they think that it's cheaper to work with someone who doesn't earn commissions... because "commissions create an incentive to rip people off by selling them something they don't need or is too expensive" or something like that. That's just one more reason why "buy term insurance and invest the difference" is so popular. They think they're saving money because they're not going to pay as large of a commission. (Hint: paying less and saving money are not the same thing.)

Oh, and fees are disclosed while commissions can be "buried in the fine print".

Praeger U - Is the Customer Always Right?

Truth is... most salespeople aren't worth the commissions they earn. They don't know enough about their products and their competing products to be a viable resource to help people make good buying decisions. They don't bother to learn how to be a better salesperson, or rather a better communicator of the merits of their products. (Of course, they have to know enough about their products first before communicating them.) Because the majority of salespeople are just glorified clerks or order takers who just happen to be paid on a transaction basis, meeting or consulting with them often becomes a complete waste of time. And while the salesperson thinks they "have a live one"... in reality, they have nothing and don't often understand why people don't buy.

It's little wonder why most people won't bother meeting with a salesperson, unless and until they are ready to buy, and then they'll endure the pain of working with them.

 

[MichaelBurton]

Because they think that it's cheaper to work with someone who doesn't earn commissions... because "commissions create an incentive to rip people off by selling them something they don't need or is too expensive" or something like that. That's just one more reason why "buy term insurance and invest the difference" is so popular. They think they're saving money because they're not going to pay as large of a commission. (Hint: paying less and saving money are not the same thing.)

Oh, and fees are disclosed while commissions can be "buried in the fine print".

Praeger U - Is the Customer Always Right?

Truth is... most salespeople aren't worth the commissions they earn. They don't know enough about their products and their competing products to be a viable resource to help people make good buying decisions. They don't bother to learn how to be a better salesperson, or rather a better communicator of the merits of their products. (Of course, they have to know enough about their products first before communicating them.) Because the majority of salespeople are just glorified clerks or order takers who just happen to be paid on a transaction basis, meeting or consulting with them often becomes a complete waste of time. And while the salesperson thinks they "have a live one"... in reality, they have nothing and don't often understand why people don't buy.

It's little wonder why most people won't bother meeting with a salesperson, unless and until they are ready to buy, and then they'll endure the pain of working with them.

That Praeger U video is AWESOME!!! Thanks for posting!!!

I got "worked" by a customer just like that a while back. They used me to check if their existing benefits broker was quoting the lowest rate on a Key Man policy. Company is VERY strapped for cash-flow, short term. I showed them that they could significantly cut costs on their two (fairly old) key execs by using ART policies. They turned around and asked their benefits broker if he could sell the same policy to "keep it all in one place!"

If I had known about this video at the time it happened, I might have sent it to them.

Probably not, though, because I hate coming across as sour grapes. But, man, it's still tempting. Should I do it?

 

[DHK]

I won't tell you to send the video... but I also won't tell you not to either!

If I were to do it... I'd send it with a copy of your professional code of ethics. Most people don't view salespeople as ethical, so clients feel justified in being unethical by using your work with their existing product provider - who has a higher level of trust, even though they didn't do the work.

IARFC - Branding

 

[MichaelBurton]

I won't tell you to send the video... but I also won't tell you not to either!

If I were to do it... I'd send it with a copy of your professional code of ethics. Most people don't view salespeople as ethical, so clients feel justified in being unethical by using your work with their existing product provider - who has a higher level of trust, even though they didn't do the work.

IARFC - Branding

I'm actually right in the middle of rebranding my whole practice around the fiduciary standard. Now I don't even work on a case without an exclusive right to represent that establishes the mutual commitments. But this case came to me through a channel where I was under the former brand.

My gut was to send them my ERR doc. But I didn't. And I paid for it.

I don't think they would have gone with me had I sent it, though. But at least it would have saved me from getting my time/effort ripped off.