Speaking ill of Life Insurance

May 1, 2008

  1. jmk2k
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    jmk2k New Member

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    I want to start a thread dealing with CFPs and financial advisers who speak ill of life insurance. Who has experienced this and how did you deal with it?

    I'll get the ball rolling
    I've used:

    -Financial advisers cannot sell life insurance (in most cases) and therefore had a fiscal incentive not to recommend it.

    -Financial advisers tend to focus on rate of return and fees while ignoring risk and taxes.

    Anyone else have helpful sales tips when dealing with the haters
     
    jmk2k, May 1, 2008
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  2. URDRWHO
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    URDRWHO Guru

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    Hm? Most CFP's do think that life insurance, disability insurance, etc. are part of financial planning goals. I used to be asked to do seminars for a big CPA firm that would invite CFP's. The CFP's I meant told me that insurance was very important. They were very big on disability insurance. On that one I always agreed with them.

     
    URDRWHO, May 1, 2008
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  3. Winter_123
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    Winter_123 Guru

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    In many instances, it is the financial advisors who have misused/abused life insurance, VUL in particular. No matter what your circumstances are, Ameriprise has a VUL that will allegedly fix it, at a price of course.

    You get advisors telling clients that if they invested the amount of their insurance premium every month that by age 65 they would be golden. Two totally different concepts and goals. First time you deliver a death benefit payout to a family, it changes your view of this business, bigtime.

    Winter
     
  4. djs
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    djs Super Moderator Moderator

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    I've never ran into this. Part of the CFP course is why life insurance is important. I've never had a financial planner not recommend it as part of the plan.

    That said, they may not recommend cash value life insurance. I can understand that, won't even try to get around this, sell term, move on.

    Are you really running into financial advisors recommending against life insurance? That's one of those that just hits me funny.

    Dan
     
    djs, May 1, 2008
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  5. Mr. Bill
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    Mr. Bill Guru

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    As has been said, there's the "buy term and invest the difference" crowd, and the "life insurance as useful tool" crowd. Believe it or not, the CFP course doesn't really cover concepts like infinite banking, missed fortune, and the like. Most FPs will look at life insurance as a replacement tool, not as a strategic accumulation/tax-free income vehicle. Can you be a bit more specific about what you're trying to overcome?
     
  6. bluemarlin08
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    bluemarlin08 Guru

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    Believe it or not, the CFP course doesn't really cover concepts like infinite banking, missed fortune, and the like


    Do you really think they should? Maybe they feel, like many do, that those insurance concepts are more geared toward generating commissions than helping the client???
     
  7. WBunch
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    WBunch Super Genius

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    Ok. I have finally taken my CFP exam in Feb. but had all the classes done, as all of the classes for ChFC are the same as CFP, just a different test, I can say your entire post about CFP's speaking ill on insurance is just plain utter stupidity. I am one of these Financial Advisors you speak of. And you know what, the first thing that is implemented with all of my clients are their respective insurance programs, life, disability, health, etc. Then the investment phase is implemented. I believe the people that you are referring to speaking ill of insurance are the Wire House Rats. They believe that you don't need insurance if you have assets. Now let me clear the air and let you know that I have my Life, Health,and Accident and Series7/66. I do a hybrid commission/fee based model that has really worked for me. At the close of 2007 the company I own had 79.8million in assets under management. Now my business has been around for going on 5 years now and it is growing beyond anything that I could ever dream of. I can add tha t being an alum of LSU has been a great help. Meet alot of movers and shakers as well as hooked up with a few sports players. I just think you need to do a little more research before you go blasting us Financial Advisors.
     
    WBunch, May 2, 2008
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  8. SportsNut
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    SportsNut Guru

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    You really don't count in the equation, since you come from the background of CLU, ChFC, then onto CFP... Of course you recognize the importance of life insurance, since you are one... so to speak.

    I think that the CFP's who would blast life ins would be so small, that the figure would not be recognizable on the tremble meter. I would imagine the experience that the original poster had from Fincl advisor or CFP is their reaction to the "type of policy" as opposed to life or no life. Many CFP's and advisors find a problem with the heavy loads of c/v life ins. Sure, it can be the right vehicle in a higher net worth individuals plan, but my feeling is that there are many who own c/v life insurance that shouldn't. Term is the answer for most folks in the accumulation mode, and plenty of it. Once the candidate has cash dripping from every orifice, then yes, there are many decent plans available. Just not for everyone.

    Nice job BTW, to have 80 mil under mgmt within 5 yrs. You are doing more than a few things right. Congrats. (from a 20+ yr CFP)
     
  9. HomeService
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    Most financial planners I know are licensed to sell life and speak very highly of it, as in, the client's number one priority should be life insurance.
     
  10. Michael
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    Michael New Member

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    The most successful producers...

    Don't "sell" at all. They position themselves as advisors and educate their clients. The sale will follow naturally - especially in the Advanced Sales Market dealing with business owners and other Centers of Influence (i.e. CPAs, attorneys, banks, P&C firms.)
     
    Michael, May 2, 2008
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