Food for thought

LGilmore

Guru
1000 Post Club
I've been kicking this around in my head the last week or so. When we write life for a client, do we or should we write to solve all problems or get them through the problem (death)? What I mean is do we create a face amount that solves everything for the client completely vs. help the family recover from the death?

If we write a plan that solves all their problems, does that create a new problem in doing so? Are we doing the right thing by creating a plan that takes care of everything for the client's family, so the family never have to do anything again?

I ask this because I have experienced a client (servicing agent for) who called me one day to check the status of his policy, how much face, how the beneficiaries were set up and so on. A basic normal conversation. I was the last conversation he had. Shortly after he said goodbye, he hung himself.

He felt that his policy would solve all the problems in his life for those he loved. This was years ago and clearly it still effects me to this day.

When we work with a client do we or should we temper our advice in such a way that we don't create too perfect a solution to early death? Should we insure someone in such a way (amount wise) that encourages the client to work everyday and come home? vs. a plan that takes care of everything if they don't?

What do you guys/gals think?
 
I've been kicking this around in my head the last week or so. When we write life for a client, do we or should we write to solve all problems or get them through the problem (death)? What I mean is do we create a face amount that solves everything for the client completely vs. help the family recover from the death?

If we write a plan that solves all their problems, does that create a new problem in doing so? Are we doing the right thing by creating a plan that takes care of everything for the client's family, so the family never have to do anything again?

I ask this because I have experienced a client (servicing agent for) who called me one day to check the status of his policy, how much face, how the beneficiaries were set up and so on. A basic normal conversation. I was the last conversation he had. Shortly after he said goodbye, he hung himself.

He felt that his policy would solve all the problems in his life for those he loved. This was years ago and clearly it still effects me to this day.

When we work with a client do we or should we temper our advice in such a way that we don't create too perfect a solution to early death? Should we insure someone in such a way (amount wise) that encourages the client to work everyday and come home? vs. a plan that takes care of everything if they don't?

What do you guys/gals think?
No, we should to put in place a plan for everything if they don't because that is what their families depend upon us to do (even if they are not aware of it). There is no guarantee the guy you talk about would not have committed suicide even if the plan had not been in place. How much worse would that have been for the family? To have all their dreams die with their loved one?
 
You're talking about selling less than the company maximum face amounts allowed... to discourage suicide?

True human economic life value would be able to put the lump sum death benefit in an interest-bearing account and allow the family to just live off the interest indefinitely - based on interest rates at the time of the application. Amounts less than HELV will be a sinking fund for a period of time and is a 'less than ideal' but most often sold plan.

If someone has been going through a tough time in life and lost much of their economic value, then their life policy became far more valuable because they wouldn't qualify for that amount again. And since face amounts are based on health and economic factors the time of application versus the time of death, it makes life insurance (and death) look more and more favorable.

I don't see how having a 'less than ideal' plan is good. All I can think, is that your plan helped someone to finally have the peace they wanted - even if that peace was in death instead of life.
 
I have been though similar situations a few times. Our part in this is a side part. Other issues in their lives gave a value to what we did for their families.

In one of my cases this LEO client ate his service pistol. In another I mistakenly left a message on her daughter's phone and the daughter intervened.

We did did not break it.
 
You're talking about selling less than the company maximum face amounts allowed... to discourage suicide?


If someone has been going through a tough time in life and lost much of their economic value, then their life policy became far more valuable because they wouldn't qualify for that amount again.

.

In a way you may not have caught, you're sort of making my comment. A tough time in life, the life insurance becomes far more valuable.... yea, it does. Does it become the solution to those tough times?

We can't control what a client does or doesn't do when times get tough. Not all clients cancel their policy when times are hard, some seek the solution my guy did.

They find a permanent solution to a temporary problem.

To everybody here, this thretad is just to see what you think. It's not a fight of you're wrong and I'm right or visa versa. It's just a thought that entered my mind and I wondered what others thought.
.
 
Larry,

This is why this job is so difficult for 99.8% of the population. If you have a good heart, things like this can really touch you.I had something so similar happen.

My thinking is that you always try to do best. And we can all argue what that means but it goes something like you always do your best and when you learn something new you bring it back to your clients. So I am sure when someone calls you know with the same phone call now, you answer with more seriousness and you think more bout the words you choose. Doing your best means trying as much as you can to help them. BUt at the end of the day, you are a business owner, if you go out and try to push to solve all problems, it is probably not going to work.

Yours has a better ending than a NYL agent I know. He took the call to cancel a policy and he was new servicing agent so he took the order.
 
No.. you did the right thing.. How many more of your or other agents clients that died unintentionally and thank goodness they had the perfect plan in place for their loved ones.. .I'm sure those cases far outweigh that one incident.. if your plan was to not to give them all they want.. you would do more harm (to the many people who die unintentionally ) than good (the few who use the life policy to commit suicide)
 
I concur with much of what was written, above. I think we have all had suicidal clients...unfortunately, life insurance may not have even covered all such events.

Our work is hard because it is a hidden risk, one most don't want to speak about. Go back to basics...use the formula for how many kids times how much income times age times what s/he wants to provide for and then ask "how much of this risk would you like me to help you apply for today?" And, go back year after year to reevaluate and add to the coverage. Start with term life and convert, if that's what will cover the risk.

When your client discusses how s/he'd rather spend the money on a vacation or motorcycle, remind her/him of the conversion, savings, peace of mind. Point out a picture of his or her family.
 
For me, this is deeply saddening and I have not had this happen with any of my clients but I have witness attempts by fellow military room-mates and seen the aftermath of a completed attempt again in my military time. So for me, this would hit me just as it did you and cause me to do some thinking.

I believe always doing your best to set them up on a complete solution is best as long as you can. As others have said in here already, its part of our job to think about the client and the client's family when they are gone.

It is devasting that this has happened, but at least the family is taken care of, and not in the boat of not having a loved one and not having the solution. Try not let it weigh on you as in a way of "if I would have just asked this one question or inquired just a bit more I could have stopped it".

It would affect me as well. I think continuing to help clients with the best solution possible is still the answer for solving their needs, and making sure their family is good is the way to go.

Stay Strong, OP.
 

Latest posts

Back
Top