Profiting From Consumers Who Bought The Wrong Insurance

[Robert Barney]

https://www.youtube.com/watch?v=x4gZlM65j0Q&spfreload=10

 

[DHK]

Nothing new about that. It's called a life settlement, and there's an entire sub-forum dedicated to talking about that subject.

What that really is, is an ad for current policyholders who no longer have (or never had) a skilled agent to help them remember the advantages of keeping their policy throughout their retirement as a strategic asset.

Or, depending on their health, they may qualify for something different with new living benefit riders that can help with those medical bills.

 

[scagnt83]

I profit from consumers who bought the wrong policy all the time. I cant tell you how many GULs/IULs/WLs I have sold to people in their 50s and 60s who have expiring term policies.

Most were told that term was the only type of life insurance they would ever need and that all the rest was a rip off. Only to find out after 20 or 30 years that they still need it for another 30-40 years. So instead of paying maybe 30%-40% more when they were younger... now they are paying 500%-1000% more on a yearly basis for GUL.

Those 20 and 30 year old term policies are gold for agents working today. I really should send guys like you a thank you card. If it wasnt for your incorrect assumptions 20 and 30 years ago, I would not make as much as I do today.

 

[Robert Barney]

I profit from consumers who bought the wrong policy all the time.

Who do you imagine is responsible for the consumers who bought the wrong policy, the consumer or the agent who recommended and sold it to them?

 

[LGilmore]

Clearly Bob, it was your fault because 20 years ago you were still writing business. You failed as the best life insurance agent ever created to educate consumers.

So you keep asking whose fault was it? It was yours Bob. You left writing business to sell to agents and left a giant hole. You should have stayed and continued to write proper business.

 

[DHK]

Who do you imagine is responsible for the consumers who bought the wrong policy, the consumer or the agent who recommended and sold it to them?

Bob,

Life changes, and so does some people's role of life insurance within their plan. The video talks about people who didn't see the value of their life insurance anymore.

They didn't say they "bought the wrong policy" or "my agent sold me the wrong policy."

They essentially said "We don't need this coverage anymore. What can we do with it?"

 

[Robert Barney]

Life changes, and so does some people's role of life insurance within their plan. The video talks about people who didn't see the value of their life insurance anymore.

No, the video talks about people who didn't need it anymore. Now while a consumer might lack the perspective on how their circumstances and finances are likely to change over time, one would hope that the "experts" (apparently everyone here except me) would be in a position to guide consumers. But we have scagnt explaining he finds lots and lost of consumers with inappropriate policies. How did that happen and who do you consider responsible?

I think all of this is blatantly obvious, except most here want to pretend that what's happening isn't happening.

 

[DHK]

No, the video talks about people who didn't need it anymore.

According to what criteria? They came to their own conclusion that they have a policy that they didn't need anymore. They no longer saw the value in keeping their policy. At least they knew it had value, so they sought a financial exchange. They didn't just "cancel it". The sold it. They have their AGENT to thank for that.

Now while a consumer might lack the perspective on how their circumstances and finances are likely to change over time, one would hope that the "experts" (apparently everyone here except me) would be in a position to guide consumers. But we have scagnt explaining he finds lots and lost of consumers with inappropriate policies. How did that happen and who do you consider responsible?

I think all of this is blatantly obvious, except most here want to pretend that what's happening isn't happening.

Bob, get ready. You're about to agree with me.

Ready?

The vast majority of agents "sell and dash". They DON'T guide consumers on an ongoing basis. All of the guidance happens at the point of sale.

Why? Partly because of the compensation of life policies that heap commissions up front... and the lack of skills on the part of agents to build clients into referral advocates. Because of this, agents don't stay in the business long term or put in place a plan to serve their clients.

So, who is responsible?
1) The agent for not staying
2) Those who trained the agent for not teaching the skills to be a true professional, instead of just a sales hunter.
3) The industry... because it's across all companies and aside from 3rd party sales teachers and trainers, it's not really being addressed.

Policyholders who are properly served by their agents... DON'T see other agents! That's why Scagnt83 is able to go see policyholders of other inactive or passive agents and recommend more appropriate policies, or rather more efficient policies to help clients achieve their financial goals.

 

[scagnt83]

Who do you imagine is responsible for the consumers who bought the wrong policy, the consumer or the agent who recommended and sold it to them?

Obviously you failed to read all of my post. TONS of people are paying tens of thousands more over the course of their life because they were told by an agent (with the same midset as you) that term insurance was all they would ever need and that WL or UL is a rip off. Or, they were told by a financial entertainer like Suze or Dave that term is all they need and the rest is a rip off.
Actual licensed agents see this all the time. People who encountered agents like you 20 and 30 years ago often end up paying thousands more for life insurance over the course of their life as they could have.


Real licensed insurance agents understand what I wrote. But carry on with your cracker jack assessment of how life insurance is supposed to work & how agents are all dirty scumbags who only want to rip people off.

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Now while a consumer might lack the perspective on how their circumstances and finances are likely to change over time, one would hope that the "experts" (apparently everyone here except me) would be in a position to guide consumers. But we have scagnt explaining he finds lots and lost of consumers with inappropriate policies. How did that happen and who do you consider responsible?

I think all of this is blatantly obvious, except most here want to pretend that what's happening isn't happening.

Ignoring the irony of what I am doing and about to say.... you cant talk sense to someone who does not want to hear it.

There are 3 main reasons an consumer does not get the solution they need.
1. The agent fails to provide the proper recommendation
2. The consumer decides to go against the agents recommendation
3. Life changes unexpectedly


Have I ever sold someone just a term policy when what they truly needed was a combination of both term and permanent? Of course, every life agent has because we can only recommend, the client is the one who decides.

Ive had people come to me who were 100% dead set against buying a WL or UL before they ever contacted me to purchase a policy. I still recommend what they need... but few of them actually listen. Of course now Ive been in the biz long enough to have a few of those term fanatics come back to me and tell me that I was right initially and they now see that they will need coverage beyond that time period. (so now they pay more than they had to)

But I have had many more come to me with a 20 year old term policy that they were told was all they would ever need... and they now see that they need another 20, 30, even 40 more years of coverage. So they now pay $10k per year from age 60-90, instead of paying $2k per year from age 35-65.


It is not a simple answer. But most of it stems from cookie cutter solutions to peoples financial situation. There is never just 1 right type of insurance policy to buy... there is never just 1 right type of investment to get... there is never just 1 right type of loan to purchase... etc. etc. etc.

Everyones situation is unique and requires its own unique solutions.

But if I had to generalize a life insurance solution for "everyone", it would be a small properly funded WL or UL paid to age 65 that has an increasing DB, combined with Term coverage.
The Term gives them the coverage while they are young. When they are old the WL/UL will hopefully be large enough to cover their need during retirement. (or at least close enough that their need for GUL or term past age 70 is minimal)

 

[Cash]

Who do you imagine is responsible for the consumers who bought the wrong policy, the consumer or the agent who recommended and sold it to them?

The consumer is responsible for their decisions.

I am responsible for my actions and partially responsible for the actions of my wife and kids. I am not in any way responsible for what a consumer decides to buy or not buy.

I am sure as hell not responsible for what some other agent sold to some *** on a YouTube video.

Living any other way is putting a burden on your shoulders and is stealing your joy. Homeless problem in my city? Not my problem. Young adult I just sold a policy to bought less than half of what he needed? Not my problem. Bad agents out there? Sure, but not my problem.

I could have made it my problem and try to sell him more but he is not worth it. I know because I've known the guy since he was 16. I don't want him calling me up when he can't pay the premium.

How many people have failed miserably at using your software? How many never got the quote form up on their website? I bet a lot. Does that keep you up at night? It shouldn't.

I like SCagnet's plan. I bet it is the one that most seasoned life agents follow. I think it should be packaged and sold that way with a cute name. I believe they do that in England and I believe Combined slaps multiple products together.