Term Conversions

[Michael Haislip]

I know you guys will go on debating term vs. perm all day. However, conversions on smaller final expense term policies--you know, under $50K--are usually cheaper in the long run for the client.

(Also, I wish I lived in an area where people could afford a million dollar policy. )

 

[James]

I believe life insurance is there to protect a mortgage, kids while they're growing up and the spouse.

The mortgage eventually gets paid, the kids grow up and move out and you're supposed to have investments.

Now, if you don't have the discipline to invest than you need permanent life. If you do have the discipline to invest then permanent life is a bad purchase. I can destroy the returns of any permanent life policy and triple my DB with term.

Plus, what difference does it make to a family of 5 where the wife's at home, bills up the wazoo, and hubby doesn't make much? You can't properly insure him with permanent life and have him afford the premiums.

I'm all for the correct DB. What I've seen all too often is $50,000 or $100,000 UL policies and just the mortgage alone is $200,000. What good does that do?

I'd MUCH rather give someone a million in 30 year term then an incorrect DB for UL. Maybe the proper mix is some permanent with a term rider.

So basically you totally miss the mark completely, as in building a solid Insurance Contract right through whom you would find as a possible prospect. Even though I know you been thru these discussions before but you keep the same misinformation going! Its simply no use I suppose? Like this comment:Now, if you don't have the discipline to invest than you need permanent life., nothing can be further from the truth!

 

[Sam]

I have a very large term policy on myself and my wife, because it is cheap and it covers the immediate need for coverage. I have a much smaller IUL that is way over funded, which is part of my investment pyramid.

They are both very important to my overall financial health. If something happens to me in the next 26 years, my family will not have to change anything of their lifestyle. If I make it past then, my IUL should have a very nice cash value that I can take interest and tax free loans from. However, I would shoot myself before telling a client to take a heloc in order to buy one. It is 5th or 6th in line of prudent investments, and it certainly does not compete with owning a house.

 

[johncm]

Sell them what they want and service them. Stay in contact and do your reviews.
Some times you just need to nurture the relationship to a point where they will start listening to you vs. just shopping based on price.
Yes,a mix of perm w/ term is a good idea.
I don't care how well you can invest, safety is and should be a first concern. Gamble with what you can afford to loose only. With a solid base, even a loss in your risky areas would not ruin your lifestyle. May nat be what you wanted, but you can sleep at night knowing that you are not loosing your home. Just may not get your new exotic sports car.