Real price of WL insurance?

[Mr. Bill]

Carol, you're best off sitting down with a FEE-ONLY financial planner (people who do not received commissions from products they sell, nor advisory fees - they only charge on a per hour basis for what they do - pay the money and then move forward), who should be able to go over your situation and give you options. From there, you can select an insurance agent who represents the right type of policy for you. I'm not a member of this group (my business is simply different), but here's how you can access someone to help - www.garrettplanningnetwork.com

Good luck!

 

[Guest]

Carol, you're best off sitting down with a FEE-ONLY financial planner

This is not the worst advice you will get, Carol, but when you wade waist-deep into this ocean there is a good chance a shark will come along and take off your knees. In most states anyone can buy a desk and a chair, put it in an office, and decide that they are a fee-based advisor. If you are going to go that route and have $2K to $3K for said advice and you have received solid recommendations from credible friends or business colleagues, than by all means proceed.

I "insist" on you working with a "named palyer"... an insurance or brokerage house that you have heard of before because these houses have standards their people have to meet. They can weed out most of the slime-balls (but not all.) They also have given their people training and they almost all have a methodology for determining your needs as opposed to a crystal ball or throwing tarot cards.

Yes, I am aligned with a major house (MoO) because I know that people feel comfortable with someone who has the logo of a major house on their business card. I wanted the training and access to the methodology and computer systems to interpret the data the fact-finding methodoogy uncovers and create multiple options and scenarios for the client to consider.

That does not make me "better" than other agents, it just give me a set of tools to use that has been proven to work well for other clients.

There is no perfect agent and there is no perfect company. Some companies are very restrictive. At MoO I can sell product from any carrier I want. Obviously I sell more MoO plans because they are good ones for the clients I market to... but not always. (Ask the question to the agent "Can you only sell your own firms' products?" and note the answer.) For example their new GUL-Complete has a sweet-spot rate for people between the 45 and 60 band... the heart of my market.

As for WL, I'm a fan of it, but prefer to sell a high-accum GUL instead... one designed to create CSV. The BTITR is fine for young savvy investors who are risk tolerant and who have the discipline to save and invest in ultra-safe issues as opposed to those who will either buy a new car each year or buy into the latest investment fad (ethenol is hot now!) My entire approach to my clients is simple: "It is not how much you make that will ultimately determine your net-worth... but how much you don't lose."

I have no issue with having money in mutuals. Everyone should, especially long-term money like 401s and IRA. But you ought to have at least half if not 2/3 of your money in safe, solid, no-care products... insurance, insured CDs, government bonds, etc.

The most important thing I tell my clients is to live just slightly below their means... and save ten cents of every dollar they make. Do that for 40 years and a well-off person you will be when you are my age (60).

HTH.

Al
Mutual of Omaha
InsuranceSolutions123 Agency

 

[SportsNut]

To sit there and tell you to buy term and invest the difference without any knowledge of your risk tolerances is MALPRACTICE.

That is YOUR opinion... My OPINION is... it is financial MALPRACTICE to sell someone a WL policy with a 3500 yr prem, when they do not own a home, and wish to... The net result of the premium may well keep her from accomplishing that goal of owning the house for a few more years, and maybe not at all.

There is nothing wrong with owning a WL policy, but it is for someone with greater financial stability than has been attained thusfar by Carol. Much better suited to one who has discretionary income to allocate to savings, investment, etc. In her situation she needs max insurance DB for the lowest cost over the next 5 to 10 yrs while her kids are in school. Also hopefully she can attain "HER GOAL" (not yours, mine or the other agents goal) of purchasing her own home. Potentially at that time she can convert the term to a more permanent plan when it suits her cash flow better; at the time the education expenses dissapate and she has the discretionary income to allocate.

Carol; buy the term insurance now. Save for the condo or home and set a realistic goal of attaining that purchase. When the term ins runs its course consider converting it into a WL or Universal Life plan then, if the premium is affordable (without pain) to you at that time.

The problem with the WL recommendation to Carol at this point is it is much better for the financial plan of the AGENT, than it is for Carol's finacnial plan; IMO... and I have a real problem with that type of recommendation.

 

[GreenSky]

I've never seen so many posts say so little. You have no money? Buy term insurance. You don't mind a 3% return (at most) and have lots of extra cash? Buy whole life.

I'm definitely not a life insurance expert but I cannot see any need for life insurance once I reach 65 or so. I've planned well enough that if I die before my wife, our assets will be sufficient to take care of her forever. Had I dropped $6,000 into whole life instead of $700 into term each year we would have less money to INVEST. Whole life is NOT an investment.

As to going with an agent with a big company, big companies did not get big by necessarily having the best products - only the best advertising. And don't think that they hire the best agents. Many companies will hire almost anyone, whether or not they have the ability to properly understand their products. (I won't point fingers here).

Go with your gut feelings as they are probably correct. I have no issue with term insurance even though it will likely expire before you do. I have homeowner and auto insurance I certainly would prefer to not file a claim.

Good luck.

Rick

 

[Crabcake Johnny]

ditto - got 30 yr term that will take me until I'm 68. At 68 there's no mortgage - son's out of college and I have assets/investments.

If my car gets stolen I'm protected. It's never been stolen nor would I imagine it will even be stolen. Am I pissing away money by having theft on my policy?

I do see that arguing about this with some life agents it a bit like our fantastic religion thread - it can be debated, heatedly, forever and no one will ever see the other's point of view.

You can do the math 100 different ways and I'll show you how putting money into perm life is a financial mistake.

yes, if you're lazy and "scared" about investing then perm life is for you. After infllation and fees might as well have buried it in a box in the back yard

 

[padthaiforlunch]

And yet another health insurance agent tells you not to buy wl.....

I think xrac summed it best. What if she becomes uninsurable? Just because you don't want perm life for yourself doesn't mean it isn't right for her.

This thread reminds me of why James doesn't post here any more. This forum is overpopulated by health agents who seem to have an irrational fear of life insurance. I say fear because that tends to be the underlying driver for dislike and hatred. And why do people fear? Typically, because they are under- and ill-informed.

The prejudice here against wl is palpable. And since I am already embarked upon a group psychoanalysis, I shall tell you why you are so afraid.... It stems from your early days trying to make a living selling insurance. It has been stated before by health agents on this forum: health insurance is an easier sale. Over the course of time, your fear of trying to make a living as a life agent has become distilled to a dislike of the source of your fear -- life insurance.

In a attempt to marginalize your fear, you poo poo wl. Your lack of self-awareness and resulting cognitive dissonance (is your penis shrinking or are you getting fatter?) releases itself as an emotional zit being squeezed for all of us to see. The pus? Bad, ill-informed, prejudiced advice.

 

[Crabcake Johnny]

"I do see that arguing about this with some life agents it a bit like our fantastic religion thread - it can be debated, heatedly, forever and no one will ever see the other's point of view."

 

[STIBROKER]

And yet another health insurance agent tells you not to buy wl....

I sell health insurance to get the life sale......and I sell WL ......to kids.....

 

[padthaiforlunch]

I sell health insurance to get the life sale......and I sell WL ......to kids.....

Well then ya ain't just another health agent....

 

[NewHealthStrategies]

I will ask again.... NOW FOR THE 5th TIME....... name me 1 recognized financial advisor that would urge the purchase of Whole Life versus term and invest in cheese-on-the-moon (I don't care where you invest it)..... find me just one!!! I keep asking and you WL kook-aid drinkers keep avoiding!!! Go figure!

Just post the link for all of us term advocates selling health insurance, so we're complete idiots will go away and bow to your superior financial planning skill set!!!!!

Hmmmmmmm?