Question for the FE Guys

[Newby]

I just got off the phone with a Foresters sales rep and we again discussed the cash value issue at length. We were comparing the differences of thier SIWL and their Plan Right policy He used an illustration to help show me the fifference between the two policies. We assumed we had a man with a $25,000 SIWL policy which he had had for about ten years. It showed a cash value of about $4,800. If the guy died at that point in time his death benefit would have been around $28,500. I aske d him where the rest of the cash value went and he stated it would be used to cover costs,

So it appears the SIWL policy is much better than the plan right in regards to cash value but technically you do not get all of the cash value in adition to the face amount upon death, You only get most of it.

In regards to your statement

"Thats the kind of stuff that gives us all a bad name."

I got news for you. Your a salesman. The rest of the world doesn't care whether your a car salesman, a mortgage broker or an insurance salesman. You already have a bad name So get off your high horse and admit to the world your nothing more than a glorified carney. The first step is to admit what you are.

The difference is, I'm a salesman that understands what I'm selling. If you ever put in writing what you are saying, you will be sued. NO portion of cash value is paid in addition to the death benefit on whole-life. It is VERY misleading to explain it that way. An increasing death benefit does NOT come from cash value. They are entirely different things.

 

[WinoBlues]

I just got off the phone with a Foresters sales rep and we again discussed the cash value issue at length. We were comparing the differences of thier SIWL and their Plan Right policy He used an illustration to help show me the fifference between the two policies. We assumed we had a man with a $25,000 SIWL policy which he had had for about ten years. It showed a cash value of about $4,800. If the guy died at that point in time his death benefit would have been around $28,500. I aske d him where the rest of the cash value went and he stated it would be used to cover costs,

So it appears the SIWL policy is much better than the plan right in regards to cash value but technically you do not get all of the cash value in adition to the face amount upon death, You only get most of it.

In regards to your statement

"Thats the kind of stuff that gives us all a bad name."

I got news for you. Your a salesman. The rest of the world doesn't care whether your a car salesman, a mortgage broker or an insurance salesman. You already have a bad name So get off your high horse and admit to the world your nothing more than a glorified carney. The first step is to admit what you are.

No, technically you get zero of your cash value, You get the paid up additions. Look at the Guaranteed death benefit in years 10, 20 or 30. It will still be $25,000.00

On your "glorified carney" comment. You are talking about the FE agents I had run across. Until I came to this forum I thought they were all unkempt, stained polyester tie, hucksters. Most are very easy to replace as they know nothing about insurance. You are correct there are Insurance Agents and there are insurance salesmen. But even a salesman should know the basics of what they are selling. Assuming they are not just flat out lying to people. Those are the people we need out of this business.

Edit: took a call midway through posting and wound up posting what Newby posted. So what he said Xs 2.

 

[Chicken Coop]

Shortsighted. It's very likely the parents know that if something happens to their daughter they will be responsible for...the two kids. Much bigger liability.

OP here, these are EXACTLY my thoughts.

When the parents asked me about coverage for their 24 year old daughter and grandkids, my initial feeling was that a 20 year level term policy with a child rider would be a good solution. For example, a 100k policy 20 year term policy with 15k child rider could be written for roughly 20 bucks a month, quite probably even less, which the parents can afford.

I have NOT written the term policy yet and have another question.

If a 100k policy was written on the daughter and a death claim happened one day and 100k gets paid to the parents, would any kind of government benefit program, such as medicaid, get
affected or reduced?

Please keep in mind, I don't know medicaid issues and am only trying to do the right thing for these people.

Thanks for all your replies.

 

[VolAgent]

I have NOT written the term policy yet and have another question.

If a 100k policy was written on the daughter and a death claim happened one day and 100k gets paid to the parents, would any kind of government benefit program, such as medicaid, get
affected or reduced?

Please keep in mind, I don't know medicaid issues and am only trying to do the right thing for these people.

Thanks for all your replies.

I don't claim to be a Medicaid expert, so please verify.

The parents would have two choices. Report the income and expect some kind of spend down until it was gone. Don't report the income and worry about being charged with Medicaid fraud.

A better option would be to create a trust to hold the policy and the proceeds for benefit of the children.

 

[nfl72]

When I first got into FE about 4 years ago I rode with the guy who got me started for one appointment. We met at a church in Flint and he had written numerous policies there and had a little presentation with 2 colored folks. In his sales presentation he clearly stated the cash value built up over time and that when the insured died they would get both the face value and the cash value. Afterwards I asked him if that was infact true becaue I didnt beleive it to be. He said yes it was. The next day I called Motorists who I was signed up with and they confirmed I was correct.

When Foresters came out with this new program I was told by at least 2 or 3 different reps that the cash value would be added to the face value upon death.

Now today I again call and get told mis information from Foresters. If the people selling the product to us don't know how should we be expected to?

I sold Toyotas for 14 years and if your going to be sucessful selling Toyotas you better know what your talking about and I always prided myself on product knowledge.
- - - - - - - - - - - - - - - - - -
And for the record is being an insurance agent supposed to be better than or worse than an insurance salesman. If someone asks me what I do for a living I tell them I am a salesman.

An insurance agent to be sounds like a very boring job. On the other hand an insurance salesman sounds much more fun. If I was sitting at the bar drinking a beer I'd much rather sit next to a salesman than an agent.

 

[WinoBlues]

When I first got into FE about 4 years ago I rode with the guy who got me started for one appointment. We met at a church in Flint and he had written numerous policies there and had a little presentation with 2 colored folks. In his sales presentation he clearly stated the cash value built up over time and that when the insured died they would get both the face value and the cash value. Afterwards I asked him if that was infact true becaue I didnt beleive it to be. He said yes it was. The next day I called Motorists who I was signed up with and they confirmed I was correct.

When Foresters came out with this new program I was told by at least 2 or 3 different reps that the cash value would be added to the face value upon death.

Now today I again call and get told mis information from Foresters. If the people selling the product to us don't know how should we be expected to?

I sold Toyotas for 14 years and if your going to be sucessful selling Toyotas you better know what your talking about and I always prided myself on product knowledge.
- - - - - - - - - - - - - - - - - -
And for the record is being an insurance agent supposed to be better than or worse than an insurance salesman. If someone asks me what I do for a living I tell them I am a salesman.

An insurance agent to be sounds like a very boring job. On the other hand an insurance salesman sounds much more fun. If I was sitting at the bar drinking a beer I'd much rather sit next to a salesman than an agent.

Another reason not to sell Foresters and why they are so easy to replace.

Who would you rather be parents agent?

 

[Norwayguy]

When I first got into FE about 4 years ago I rode with the guy who got me started for one appointment. We met at a church in Flint and he had written numerous policies there and had a little presentation with 2 colored folks. In his sales presentation he clearly stated the cash value built up over time and that when the insured died they would get both the face value and the cash value. Afterwards I asked him if that was infact true becaue I didnt beleive it to be. He said yes it was. The next day I called Motorists who I was signed up with and they confirmed I was correct.

When Foresters came out with this new program I was told by at least 2 or 3 different reps that the cash value would be added to the face value upon death.

Now today I again call and get told mis information from Foresters. If the people selling the product to us don't know how should we be expected to?

I sold Toyotas for 14 years and if your going to be sucessful selling Toyotas you better know what your talking about and I always prided myself on product knowledge.
- - - - - - - - - - - - - - - - - -
And for the record is being an insurance agent supposed to be better than or worse than an insurance salesman. If someone asks me what I do for a living I tell them I am a salesman.

An insurance agent to be sounds like a very boring job. On the other hand an insurance salesman sounds much more fun. If I was sitting at the bar drinking a beer I'd much rather sit next to a salesman than an agent.

Except for your former mentor you are the only licensed individual in the equation. Yes the home office is staffed with idiots, it does not mean you get a pass for passing out incorrect info.

 

[WinoBlues]

Another reason not to sell Foresters and why they are so easy to replace.

Who would you rather be parents agent?

Also you are not saying it is someone else's responsibility to train you, are you?

 

[moonlightandmargaritas]

...had a little presentation with 2 colored folks.

Colored folks? Really? Are you sure they weren't negroes?

PS-While you weren't looking, the calendar flipped over to 2012 from 1962...

 

[Todd King]

I was wondering what color they were. Black? Brown? Lightly Tanned? Yellow? Red? White? What??