Life Insurance 101

[James]

But you have a good point - except I only have one kid:-)

Well miracles do happen!

 

[Crabcake Johnny]

[What is BTID?

BTID is the biggest fight in the life insurance industry that will rage on for centuries - "buy term invest the difference."

The theory is if term is $100 a month and perm with the same cash value is $400 a month you buy term and invest the other $300 with the hope that you'll get a better return.

 

[Crabcake Johnny]

A good W/L contract is expected to perform in the 5-6% range, now you may or may not beat this in any time lenght, of your choice. There is no degree of certainity in life as what makes W/L desirable to many. Now all of this is tied to a DB that is expected to pay out but when is the big question. In other words you can't take the CV side away from the DB side, they are tied together.

If I averaged anywhere near 5-6% in my investments I'd throw my computer out the window. I'm about 12% on average with my agressive growth portfolio.

 

[Crabcake Johnny]

But you have a good point - except I only have one kid:-)

Well miracles do happen!

But we're ramping up to adopt in the next two years.

 

[James]

[What is BTID?

BTID is the biggest fight in the life insurance industry that will rage on for centuries - "buy term invest the difference."

The theory is if term is $100 a month and perm with the same cash value is $400 a month you buy term and invest the other $300 with the hope that you'll get a better return.

I don't know, I do not think the rage is real at all. I think its more a question of degrees and product knowledge.

 

[Crabcake Johnny]

It's all pretty simple; offer and fully explain the pros and cons of both and your client chooses.

 

[James]

Lets take Annuities, fix type regular or Equity Index. Now is there a better product for the creation of lifetime income out there? NO. Are they the best interest bearing for accumulating money, NO. Yet to be against Annuities becuase of the latter is silly, you pass up the real power of the Annuity.

What I'm referring to is "Lost Oppurtunity", now this is what most Financial and anti Cash Value Ins. Agents will cite. Yet I can site the same about securities may it be SMA, TRF, IRA, 401, Small Cap, International take your pick are all samples of "Lost Oppurtunity" when compared to investing in ones own business. Such as Lead or Prospecting in the insurance field where 250 dollars spent on developing leads and prospects that will lead to 2 clients that will spend XX on there insurance needs which you get a healthy chunk of.

In other words don't forsake the Bread for the Jam, they are better together!

 

[J.R.]

Lets take Annuities, fix type regular or Equity Index. Now is there a better product for the creation of lifetime income out there? NO. Are they the best interest bearing for accumulating money, NO. Yet to be against Annuities becuase of the latter is silly, you pass up the real power of the Annuity.

What I'm referring to is "Lost Oppurtunity", now this is what most Financial and anti Cash Value Ins. Agents will cite. Yet I can site the same about securities may it be SMA, TRF, IRA, 401, Small Cap, International take your pick are all samples of "Lost Oppurtunity" when compared to investing in ones own business. Such as Lead or Prospecting in the insurance field where 250 dollars spent on developing leads and prospects that will lead to 2 clients that will spend XX on there insurance needs which you get a healthy chunk of.

In other words don't forsake the Bread for the Jam, they are better together!

Not unless you include peanut butter and milk

 

[James]

It's all pretty simple; offer and fully explain the pros and cons of both and your client chooses.

Well this is true but we are doing something else here. That would be explaining why Permement Insurance is a tool that can be sold by the agent. Lets face it, in todays market one can go a long way without learning the real power of the W/L, UL or the Annuity or being able to properly placing these products. Isn't that exactly what a person on this thread asked?

To get back to Permenent Insurance, use the methology of Retail Vs Wholesale as explained by "Once again" Burt Meisel in one of his many excellent books on the subject of marketing and selling isurance. Which ties into the "5 Way" as I mention earlier.

 

[NHB_MMA]

Now this is getting to be an interesting discussion. Will have to read it more thoroughly later.