Selling Final Expense Policies

[Newby]

It's very simple...when they need the coverage for a limited time you write term. When they need/want the coverage as long as they live you write whole life. Most young people either get a mix or buy convertable term and convert it as they get older.
Seniors need/ buy whole life as a rule.
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Telling EVERYONE they only need term is a great way to screw them over. Primerica and Dave Ramsey both make millions doing that. They may have started out believing their own BS but they have been around long enough now to have seen results. It's too profitable for them to stop and would derail thier money train to change lanes now.
Very few people buy term and invest the difference. They SPEND the difference. And usually there is no difference because they are not going for a lower premium, they are paying the same premium and getting a higher face amount. But at the end of the term if they still have insurance needs...it's NICE to be able to convert to whole life.

The decreasing cash value example your manager is telling you about is NOT whole life. That describes an underfunded UL universal life police. With whole life the the cash value can ONLY increase each year and the premium is level for life or until it is a paid up policy.

I agree that Primerica is one of the worst places to be. They WANT to keep you ignorant.

 

[arnguy]

really, spelling cracks? as if you didn't know what i meant?.........

Maybe, maybe not. I would just classify it as a brain fart (apologies to Mark R.).

 

[Mark]

Maybe, maybe not. I would just classify it as a brain fart (apologies to Mark R.).

I charge 25 cent everytime someone uses my catch phrase. I have a copy right on it.

I have daily brain farts.

 

[tampacochran]

It's very simple...when they need the coverage for a limited time you write term. When they need/want the coverage as long as they live you write whole life. Most young people either get a mix or buy convertable term and convert it as they get older.
Seniors need/ buy whole life as a rule.
- - - - - - - - - - - - - - - - - -
Telling EVERYONE they only need term is a great way to screw them over. Primerica and Dave Ramsey both make millions doing that. They may have started out believing their own BS but they have been around long enough now to have seen results. It's too profitable for them to stop and would derail thier money train to change lanes now.
Very few people buy term and invest the difference. They SPEND the difference. And usually there is no difference because they are not going for a lower premium, they are paying the same premium and getting a higher face amount. But at the end of the term if they still have insurance needs...it's NICE to be able to convert to whole life.

The decreasing cash value example your manager is telling you about is NOT whole life. That describes an underfunded UL universal life police. With whole life the the cash value can ONLY increase each year and the premium is level for life or until it is a paid up policy.

I agree that Primerica is one of the worst places to be. They WANT to keep you ignorant.

+1 . . . Primerica is a joke.

 

[NC Coach]

+1 . . . Primerica is a joke.

Agreed. Not to mention their products are woefully overpriced. Even if you did believe in "Buy term, invest the difference" you could do it for much more compensation, AND much lower premiums for your customer elsewhere.

One size (i.e. term insurance) does not fit all in this industry.