Primerica reports 13% growth in term life net premiums in 3Q, 5% increase in agents
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The fact of the matter is the life insurance industry left the window wide open for Art Williams. When I started with Pru we had two term products an ART and a 5 year term. Most people back then we're underinsured ( the largest client on my assigned book with Pru had $65,000 of insurance) and term was not a viable option for 20 or 30 years. Bottom line if the insurance industry offered competitive term you never would have heard of Art Williams, and I really believe if it were not for him we would still be selling ART and 5 year term products.
But the ALW crowd was not replacing "short term term", they were replacing WL with an overpriced SI term plan coupled with an annuity. They had bumper stickers and t-shits - A L Williams changed my WHOLE LIFE.
Replacing perm with term. Selling the dream of accumulating great wealth. "Client" will have no need for life insurance because of the stash of cash in the annuity. BTID quickly became buy term and spend the difference. Some who still had a need for life insurance when their term ran out, or became too expensive, could not qualify for replacement insurance, or could not afford it.
The only thing positive that came out of the ALW cult was the awakening of carriers and agents to focus more on protection than commissions.
My first job in the life insurance business involved a form of FNA/CNA where we showed the prospect how much life insurance they NEEDED. Let's say the figure was $500,000.
But they could not afford $500k in WL so we sold what they could afford, $50,000 and then come back and sell them more each year, moving them towards the ultimlate goal of being "fully insured". In some cases we sold $50k WL with a $450k term rider. The agent was supposed to come back and convert a litle each year creating a new income stream (for them).
Part time agents resulted in stricter licensing rules for new agents, pre-liscensing training, continuing ed and higher license fees. Temporary insurance licenses were also eliminated.
Replacing perm with term. Selling the dream of accumulating great wealth. "Client" will have no need for life insurance because of the stash of cash in the annuity. BTID quickly became buy term and spend the difference. Some who still had a need for life insurance when their term ran out, or became too expensive, could not qualify for replacement insurance, or could not afford it.
The only thing positive that came out of the ALW cult was the awakening of carriers and agents to focus more on protection than commissions.
My first job in the life insurance business involved a form of FNA/CNA where we showed the prospect how much life insurance they NEEDED. Let's say the figure was $500,000.
But they could not afford $500k in WL so we sold what they could afford, $50,000 and then come back and sell them more each year, moving them towards the ultimlate goal of being "fully insured". In some cases we sold $50k WL with a $450k term rider. The agent was supposed to come back and convert a litle each year creating a new income stream (for them).
Part time agents resulted in stricter licensing rules for new agents, pre-liscensing training, continuing ed and higher license fees. Temporary insurance licenses were also eliminated.
- 15,041
I fail to see how AL Williams has improved the industry. By all accounts, Americans are more under-insured now than before his arrival.
The young ones think they will never die, or if they do it will only be after they have amassed a fortune, are debt free and no longer need life insurance.
The old and sick would buy it in a heartbeat if they could qualify and had the $$$
- 15,041
Somehow I don't think that is any different than before his arrival.
I think Hubert Humphrey did more to change the industry by introducing the MLM business model into Art's business. It exposed them to an entirely new revenue stream. . .their force.
old rookie
Expert
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Way back in my earlier life in 1980 I joined AL Williams. I truly believe Art Williams did change the industry for the better. I also believe Art Williams had honest intentions. He stressed the importance of recruiting honest people. The problem was and perhaps still is that the MLM model leaves the door open for con artists. ALW became infiltrated with too many opportunist and that is what turned me off. Today there are a few copy cats of the ALW MLM model in the industry. From what I have seen they are mostly of the con artist mode. MLM is ok if you are selling soap or vitamins, but life insurance is a different animal. Firms like Symmetry Financial Group continue to "sell the dream". SFG is all about selling leads. They claim that they actually lose money on their lead system. I would say that is not true. Insurance should be made up of qualified honest people and probably is for the most part. I would not include firms that promote recruiting over selling.
