Dave Ramsey

[WinoBlues]

You know I was just razzung you

Yeah I know.

..................

 

[jerry176]

Sell them what they want, convert them later.

When I started years ago, a senior agent described this type of client and simply said... "if they are going to be that dumb, they deserve to buy twice."

That's funny...It reminds me of one of my favorite lines from a mentor..

"When you buy on price, you buy twice"

 

[DHK]

Save Thousands When Understanding Price Verses Cost! | Janine Elias

Price Verses Cost : For those of you who aren't familiar with the concept of price verses cost or haven't been inspired to apply it to your own life yet lets break it down and really look at how you make your purchasing decisions. I will give you two examples and begin with a story I was listening to Zig Ziglar tell about price verse cost. Zig was telling a story of buying a bike for his son in the 70's. There was a Schwinn bicycle for $64.95 which was a great deal of money at the time for a child's bike and there was also another brand of bicycle that was only $34.95 and he and his wife decided to purchase the cycle with the lower price.

Turned out they had to replace the handle bars within the first month of their son riding the bicycle and again in the second month and the price for the handle bars were $9.99 each time. They had to replace the rim of one of the tires on the third month $12.95 and by month six the bike needed a new sprocket for $50.00. Instead of replacing the sprockets Zig and his wife bought their son the Schwinn bicycle at $64.95 and their son rode the second bicycle for ten years. It turned out the bicycle that appeared to be priced less ended up costing them more then the bicycle with what appeared to be the higher price. The bicycle with the higher price ended up actually costing less. The price of the first bicycle was $34.95 and their son used the bicycle for six months at a cost of $11.31 per month. The second bicycle with the price of $64.95 the child rode for ten years with a cost of $6.49 per year.

 

[KaseyNM]

I point out some things that Dave doesn't talk about.
- Creates tax free income - like a Roth.
- Dave says "you die and they keep the money" - but he leaves out that they pay you much more than the amount of money that grew in the policy.

Also, a good illustration showing values of permanent vs buying term and investing the difference can help.

But I think just getting them convertible term works, you probably won't change their mind, but you can educate them. And there's the opp to convert/resell later in the relationship.

Also, permanent isn't for everyone. My parents are in their early sixties and have no need for life insurance, some people self-insure.

 

[indiana260]

I say that it frustrates me that Dave makes this general statement.
Term is not bad for a 34 year old guy like me, that has two kids to put through college. Once they are through school I don't need the term any longer. I just need a 25k while life policy that I can lock in a low rate and never worry about it going up.
And besides Dave says buy term and invest the difference, but let's be honest... What really happens? Most people buy the term and spend the difference.

 

[Newby]

If they are huge Dave Ramsey fans, he's done all the heavy lifting for you. He tells them to buy 10X their income in term life, disability, major medical, LTC (after age 60)...

Why swim against the current? Start out by selling them what they have already been told they need.

 

[WCMason]

If they are huge Dave Ramsey fans, he's done all the heavy lifting for you. He tells them to buy 10X their income in term life, disability, major medical, LTC (after age 60)... Why swim against the current? Start out by selling them what they have already been told they need.

Amen. I got a call from someone who led off with letting me know he only wanted term because he listens to Ramsey. I wrote him a $1M 15 year term. He's 49. Policy issued. Helps both clubs, as they say in baseball trades.

 

[WinoBlues]

If they are huge Dave Ramsey fans, he's done all the heavy lifting for you. He tells them to buy 10X their income in term life, disability, major medical, LTC (after age 60)...

Why swim against the current? Start out by selling them what they have already been told they need.

Ditto that. Make them your clients then fix them.

 

[Mavrik]

Easier to sell people what they want to buy.

After you've made them a client and you still feel the need to re-educate them, bring the following to the next meeting.

Let's say you're talking to a 30 yr old guy. Draw three columns on a simple word document titled: rent, lease, and own. Fill annual numbers into the columns based on premium amounts for increasing renewable term(preferably numbers from the policy he bought from you already) under the rent column, an NLG UL set to go paid up at age 65 under lease and a WL policy under Own. Total the columns so the guy can see the cumulative payment and cash value for each column when he turns 65. Point to the totals in one of the columns and say," after 35 years, here's what you've paid in and here's what you've got to show for it - which one makes the most sense to you?"

Go do this for yourself and see how the numbers work out. Pennies in the bucket to get out dollars.

 

[bboman23]

How do you guys deal with the Dave Ramsey type objection? People who refuse to buy whole life and demand on buying term. It seems this would hurt us as fe agents selling whole life.

I have run into a few people who were very headstrong with the Dave Ramsey idea of term and wouldn't even listen if I mentioned whole life.

Where are you buying your leads? I think maybe you listened to Dave and are making this up. If you are working the FE market, you won't run into this. Gooner said he did once, but it was probably a referral. If they are truely that head strong, write them term. Simple fix!