Question of Ethics

Ethics has nothing to do with it as long as you honestly represent the pro's & con's of each.

If price becomes the ONLY determining issue in buying insurance, including term, then we become expendable.
 
Everyone is missing the point here.

Let's assume that ALL THINGS ARE EQUAL.

The client wants a 20 year term - period. He's never going to convert. He doesn't need it in 20 years and one day. All he wants is level term for 20 years.

Any company can go out of business and the size of the carrier is not indicative of future performance.

Given the above, is it ethical to recommend the same coverage for $100 a year more?

I understand the wish to make it a clean choice, but I just want to throw out there that most people with term will never want to convert, yet, there might be someone who gets sick in year 19, and the conversion will be a huge help.

In any case, I don't think that there is a moral imperative to sell the absolute cheapest policy, all things being equal. I think that anything within a "reasonable variance" is fine, and everyone needs to decide their own reasonable variances.

A CPA has no imperative to charge the least for doing your taxes, unless he represents that there is no one cheaper.

A lawyer has no imperative to charge the least per hour unless he claims to be the absolute cheapest.

A tire store has no imperative to charge the least unless they claim to be the absolute cheapest.

Likewise, as has been mentioned before, an insurance agent has absolutely no imperative to sell the cheapest policy, even if all things else are equal. The only time there is a problem is if you misrepresent what you are selling as the absolute cheapest.
 
This "cheapest" stuff is insane. Since when is anyone supposed to sell the cheapest of anything and how is it tied to ethics.

So if I walk into Best Buy ethically they have to show me the cheapest computer? TV? I go to a car lot and ethically they have to show me the cheapest car? My real estate agent is supposed to show me the cheapest house?

You cannot sell anything that's too expensive anyway. So I decide to be unethical, just driven by commission so I'm gonna sell that 30 year old client a $400 a month health plan? Good luck. I'm gonna convince a family of 4 to pay $1,500 a month so I can get a huge commission? Hmmmm, why aren't they returning my calls?
 
That is absolutely true. Your first recommendation should be what you and your family have - however that obviously changes due to health concerns and underwriting. Still, I would never recommend a plan I wouldn't put my family on.
 
" term and KNOWS he won't ever convert. "

He can not KNOW anything. He may think he will never convert. Yet he can not KNOW he never will. Your statement is not valid at all.

He can not know what may happen next week much less 5, 10, 15 or 19 years from now. He may even die next week. He may live 40 more years. Nobody can know what he may want in 15 years. So say so is not a very wise thing to say. I'm sure you understand that point.

What he thinks and what he knows are two different things. Like I told you, give him the same advice you'd take yourself. That is always the right thing to do. You would do what is best for you right? If so well do the same thing for him.
 
Don't worry about having the cheapest premium. You'll go mad trying to find the cheapest companies. Sell the customer on you and your service and (within reason) price will not be an issue.

Find 3-4 companies where you can meet 90% of the needs you encounter. Place 90% of your business with these companies and don't worry if West Coast Life is seven dollars less.

Never allow a prospect to get you engaged in a bidding war on term.
 
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