Hoping to swing my first deal!!!

[moonlightandmargaritas]

It looks like yet another unfortunate situation where the life insurance companies are "posing" as "financial planners". All of their plans involve some form of permanent insurance -- because that's what they want to sell. Whether it's Guardian with LEAP or whatever, all roads lead to their product: permanent life insurance.

Now that's not to say it's never appropriate. But until the guy MAXS OUT every single tax advantaged opportunity he has (401k, SEP, SIMPLE, IRA, etc.) if he doesn't need the insurance, it's not the best thing for him!

Problem is, life insurance pays about a 55% commission, and mutual funds maybe 2.5 to 3%......

 

[NHB_MMA]

It looks like yet another unfortunate situation where the life insurance companies are "posing" as "financial planners". All of their plans involve some form of permanent insurance -- because that's what they want to sell. Whether it's Guardian with LEAP or whatever, all roads lead to their product: permanent life insurance.

Now that's not to say it's never appropriate. But until the guy MAXS OUT every single tax advantaged opportunity he has (401k, SEP, SIMPLE, IRA, etc.) if he doesn't need the insurance, it's not the best thing for him!

Problem is, life insurance pays about a 55% commission, and mutual funds maybe 2.5 to 3%......

We're starting mutual funds after the first of the year. The first concern is making sure he has some death benefit. The guy owns other life policies including a whole life. No one is suggesting he fund his entire retirement through life insurance.

Term has its place. Perm has its place.

 

[moonlightandmargaritas]

Fair enough. It sounds like he has some death benefit.

How much does he have? How much does he need? How much does he want?

I'm just trying to give you a perspective that's different from your manager, who may not be objective.

 

[James]

Oh you are a NYL Agent, that's right. So I assume then you would sell a NYL W/L Policy! W/L a good deal and since he already has a W/L Policy the sale should be just that much easier. Now you have to find out if the W/L Policy he has is good or performing as good as the NYL Policy would. First thing to do is a complete Review, I kow NYL pushes the Review so I'm assuming that is what your manager is asking you do to.

 

[NHB_MMA]

Fair enough. It sounds like he has some death benefit.

How much does he have? How much does he need? How much does he want?

I'm just trying to give you a perspective that's different from your manager, who may not be objective.

I think he has about 500K from what he listed during our last meeting, and that may not be the most ideal but I think it is pretty sufficient for his situation.

 

[NHB_MMA]

Oh you are a NYL Agent, that's right. So I assume then you would sell a NYL W/L Policy! W/L a good deal and since he already has a W/L Policy the sale should be just that much easier. Now you have to find out if the W/L Policy he has is good or performing as good as the NYL Policy would. First thing to do is a complete Review, I kow NYL pushes the Review so I'm assuming that is what your manager is asking you do to.

During training, we were taught to NOT replace whole life, unless it is a truly inferior plan little or no dividends back into the policy.

Of course that was one manager that taught us that. We have another with questionable ethics to say the least.

 

[James]

Oh you are a NYL Agent, that's right. So I assume then you would sell a NYL W/L Policy! W/L a good deal and since he already has a W/L Policy the sale should be just that much easier. Now you have to find out if the W/L Policy he has is good or performing as good as the NYL Policy would. First thing to do is a complete Review, I kow NYL pushes the Review so I'm assuming that is what your manager is asking you do to.

During training, we were taught to NOT replace whole life, unless it is a truly inferior plan little or no dividends back into the policy.

Of course that was one manager that taught us that. We have another with questionable ethics to say the least.

Some one mention the idea is too know your competitors contracts, in health that may not be so difficult, well at least for the major players. Yet in W/L, so many companies issue W/L's and since you didn't mention which company, I would suggest finding out and finding how too create the wedge.

Wedge, a device you find to create a negative issue with what they have now and then of course the negatives need to be address, such as your contract with NYL doesn't have those negatives. Well kind of a nasty little trick but it does come in helpful though. One thing you can look into is since he has come out and mention UL's, which I am assuming he said, is to showcase the best EIUL (I'm thinking NYL has one?) and if he like that idea is too switch the W/L over too a NYL EIUL. So do they have a EIUL?

 

[STIBROKER]

During training, we were taught to NOT replace whole life, unless it is a truly inferior plan little or no dividends back into the policy.

well then they should be teaching you the diffrence between non-participating whole life insurance and participating whole life insurance........

Non-Participating Whole Life Insurance

A non-participating whole life policy has a level premium and face amount during your entire life. The advantages of such a policy are its fixed costs and relatively low out-of-pocket premium payments. Since the policy is non-participating it does not pay you any dividends.

Participating Whole Life Insurance

A participating whole life policy pays dividends. The dividends represent the favorable experience of the company and result from excess investment earnings, favorable mortality and expense savings. Dividends can be paid in cash, used to reduce your premium payments, left to accumulate at a specified rate of interest or used to purchase paid-up additional insurance which will increase your face amount of coverage. Dividends are not guaranteed to be paid to you.

 

[NHB_MMA]

well then they should be teaching you the diffrence between non-participating whole life insurance and participating whole life insurance........

Non-Participating Whole Life Insurance

A non-participating whole life policy has a level premium and face amount during your entire life. The advantages of such a policy are its fixed costs and relatively low out-of-pocket premium payments. Since the policy is non-participating it does not pay you any dividends.

Yes, I have heard the terminology thrown out there. Non-participating could kind of be viewed as a permanent, level-premium term, in effect?

Years ago, I sold health for MEGA and briefly for NHIC and that is what I understand. I am so new to life that it overwhelms me. My manager is like "just get appointments". I hate knowing so little and I understand it will take months and years to really have true expertise, but I hate the thought of questions a good agent should know coming up and not knowing them.

NYL brags about their training and they do have have pretty good sales training, but their product training was next to nothing. They have these Monday morning things for a couple hours, but it's geared towards experienced agents and it's over my head. Even MEGA had far better product training, in terms of knowing the plan features and being able to answer questions, albeit deceptive.

I do have issues with NYL and certainly my boss. If I had it to do over again, I would have walked but that decision is about my recruiter. I have nothing but good things to say about the company and products, but the way they run the show can be suspect. The best yet was my recruiting manager telling me to look the other way on a potential forgery, but "don't say anything, because you'll be fired". Maybe I'll rant about that in a separate thread.

 

[NHB_MMA]

Some one mention the idea is too know your competitors contracts, in health that may not be so difficult, well at least for the major players. Yet in W/L, so many companies issue W/L's and since you didn't mention which company, I would suggest finding out and finding how too create the wedge.

I forget what he said the company is and I never heard of it. It was a policy purchased in a foreign country prior to his immigration and he sends them an annual check. He seems satisfied with its performance, said he doesn't want to touch it, but says he wants something is U.S. dollars.