Million-dollar whole life!

[DHK]

I agree . . .

My job is to show them how they can Buy Term & Invest The Rest . . .

Federal Life has a nice small Annuity that peeps can start for $50 and $25 a month.

Now - if they don't - not my fault.

Key is to locking in that "insurability" for down the road. Lie the article says - the client can always convert some or all to Permanent Insurance when their needs allow it.

I'm going to correct you. It's your job to show people how to buy competitive term life insurance for their situation.

Unless you are securities licensed, it is NOT your job to show people how to "invest the rest".

Plus, "Buy term and invest the difference" is NOT a planning strategy. It's a replacement tactic.

First, it assumes you can afford a whole life premium.
Second, it assumes that you are considering something else for the same dollars.
So, the competitor says "buy term and invest the difference... with me."

Unless you're doing financial planning and consulting, leave out the "invest the difference" talk in what you're doing. You can tell them to put money in their 401(k) or IRAs... but it's not like you're going to advise them in the asset allocation or anything else. (Heaven help your clients and your E&O if you do.)

 

[DHK]

My job is to show them how they can Buy Term & Invest The Rest . . .

Federal Life has a nice small Annuity that peeps can start for $50 and $25 a month.

I wouldn't touch annuities yet, if I were you. That would scare me if you're trying to do that at this stage of your development.

 

[jboussea]

I know Penn Mutual has a 3 month look back for charge back .. in other words if your client cancels after the 1st month . you pay Penn 3 months ... even though they pay you as earned..

So you better make sure the clients know exactly what they're doing and why they want the policy.

 

[myinsurebiz]

Unless you're doing financial planning and consulting, leave out the "invest the difference" talk in what you're doing. You can tell them to put money in their 401(k) or IRAs... but it's not like you're going to advise them in the asset allocation or anything else. (Heaven help your clients and your E&O if you do.)

I'm just telling them to take the "Difference" and put it somewhere to get a decent return.

I'm thinking for the time being, partnering with a local CFP and letting them handle the "Difference" part of the relationship. I'll just do the Life portion.

 

[toolbelt]

You do realize that Primerica has sold more Term over the years than #2 thru #10 companies combined right?

Issuing policies means nothing if its later cancelled. Policies in force is what matters, and the growth of policies in force YOY is what determines whether its suitable or not.

 

[Allen Trent]

I'm thinking for the time being, partnering with a local CFP and letting them handle the "Difference" part of the relationship. I'll just do the Life portion.

If you are talking about the average consumer that is just getting starting in saving, most CFPs are going to have no interest in helping them save $100 or $200 or even $500 per month. It will be way to labor intensive for little to no revenue to the CFP. If the CFP takes the case on, they would likely be charged several thousands of dollars to create a financial plan.

That type of person would be much better off saving inside their 401k at work because of ease & forced savings & avoiding the ongoing CFP charges. for a real small saver of merely saving the difference in cost between Term and WL, they may not be able to overcome the added cost of the CFPs and investment costs than they could get with investing that small difference inside a WL PUAR rider or an IUL fund.

A CFP is likely much more ideal for your client that has already saved hundreds of thousands that the CFP might be able to make more revenue on & thus, be willing to commit more time to advising them.

This is why many times the BTID doesnt work. It works great for the person that has great financial awareness & saves on their own through work. It can work well for someone already high income & wealth. It doesnt work for blue collar or middle class average consumers because most financial planners have little to no time, interest or use in helping them as it loses them money & keeps them from hunting elephants. (Not all, but many or most)

 

[myinsurebiz]

If you are talking about the average consumer that is just getting starting in saving, most CFPs are going to have no interest in helping them save $100 or $200 or even $500 per month. It will be way to labor intensive for little to no revenue to the CFP. If the CFP takes the case on, they would likely be charged several thousands of dollars to create a financial plan.

That type of person would be much better off saving inside their 401k at work because of ease & forced savings & avoiding the ongoing CFP charges. for a real small saver of merely saving the difference in cost between Term and WL, they may not be able to overcome the added cost of the CFPs and investment costs than they could get with investing that small difference inside a WL PUAR rider or an IUL fund.

A CFP is likely much more ideal for your client that has already saved hundreds of thousands that the CFP might be able to make more revenue on & thus, be willing to commit more time to advising them.

This is why many times the BTID doesnt work. It works great for the person that has great financial awareness & saves on their own through work. It can work well for someone already high income & wealth. It doesnt work for blue collar or middle class average consumers because most financial planners have little to no time, interest or use in helping them as it loses them money & keeps them from hunting elephants. (Not all, but many or most)

I'm just not trained nor skilled in Financial Planning. Selling Term or SIWL is a no brainer. I'm not even comfortable in the UL market yet.

But - the average peep needs a way to save $50 / $100 a month. Many folks don't have a job and are self employed.

Thanks for replying though Allen.

 

[goillini52]

I agree . . .

My job is to show them how they can Buy Term & Invest The Rest . . .

Federal Life has a nice small Annuity that peeps can start for $50 and $25 a month.

Now - if they don't - not my fault.

Key is to locking in that "insurability" for down the road. Lie the article says - the client can always convert some or all to Permanent Insurance when their needs allow it.

What kind of commission does that $25 a month Annuity pay. I can't imagine that it would be worth your time to write those.

 

[myinsurebiz]

What kind of commission does that $25 a month Annuity pay. I can't imagine that it would be worth your time to write those.

Only 3% - but, would really be a service to get the Life biz. But 3% of $1million a month would be sweet . . .

 

[myinsurebiz]

but not really for the earnings - for the BTID for the lil guy