Life insurance Rule

Nov 19, 2018

  1. yorkriver1
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    yorkriver1 Guru

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    Having been exposed to some now discredited sales tactics for life insurance, I can make this statement:
    If your prospect has to ask somewhere substantially into the sales presentation,
    "Is this life insurance, Jim?"
    It's not compliant.
     
  2. bmarsh
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    bmarsh Super Genius

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    It is not a savings account nor an investment...although you can use it however you want. If you want to use the cash build up as an investment, no one is going to stop you.
     
    bmarsh, Apr 24, 2019
    #22
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I think there are more restrictions on insurance COMPANIES versus AGENTS.

    In my opinion, it is important that you don't "re-label" life insurance to be something it isn't. I call it "Investment-grade life insurance", but it's obviously still life insurance. I wouldn't call it a "7702 Retirement Plan" - even though it could be that.

    On the FB group, we recently had a thorough discussion on whole life vs term (with a few Primerica agents)... and we were privileged that Michael Finke, PhD, CFP and Chief Academic Officer of The American College chimed in.

    Here are his posts:
    My response to that last post:
    https://davidkinderfinancial.wixsit...etKsnXjZ6kgAsKWKHuGRaOIWQ5_X4JX2potI6FjNhIJ8Y

    Michael Finke continues:

     
    DHK, Apr 24, 2019
    #23
  4. bmarsh
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    bmarsh Super Genius

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    "A contract is just a package, you can give it a name if you want to, i've got tax policies, i've got this kind of policy, i've got that kind of policy, they are all the same policy...its application"
    -Ben Feldman
     
    bmarsh, Apr 25, 2019
    #24
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    True, but there's different ways to look at that saying.

    Obviously, Ben Feldman used the same policies for key person, buy/sell, estate equalization, tax planning, etc. Same policy, different uses. (Of course, don't try to make the same policy do too many things at the same time for a client, or it will lose its effectiveness.)

    Irwin Burt Meisel wrote a concept book (out of print) called "Pocket Full of $ales". In it, it had a bunch of 1-page concept presentations and he would customize them for the person he was working with. I don't have it anymore, but I vaguely remember some.

    For a guy into watches, he had the "Casio" plan, "Timex" plan, and the "Rolex" plan (or something to that effect).

    For the pizzaria owner, he had the "Plain Cheese" plan, "Pepperoni and Sausage" plan, and "Supreme" plan.

    Anyway, he took the person's profession and labeled his policies in the plan according to prestige/quality within their profession.

    Meisel then would add up all the columns for the multiple years and put the equations at the bottom: Term: $0 equity Whole Life: $xx,xxx equity and $xx,xxx death benefit for a given premium. "Which makes better financial sense to you?"
     
    DHK, Apr 25, 2019
    #25
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