The Sale

[James]

Very true and the correct DB is at best an arbitrary figure. How much DOES my wife need if I died tomorrow? Well, my wife would need $40,000 after taxes to get the bills paid. I'm figuring on 6% invested with a 1 mill DB or $60,000 a year pre-tax income. Then she has social security bene's coming.

But it's arbitrary. Three life insurance agents would probably recommend three diffent plans and figures. All would be right - all would be wrong. It's too subjective.

I do know this though - a low DB would greatly harm my wife. Say someone came over and sold me $100,000 of perm and left. I die tomorrow and my wife's ass-out. That's useless. I really don't care what the structure is, what plan is sold, perm VS term....to me it all doesn't matter. The CORE function is life insurance is that it needs to perform is the insured died tomorrow.

Your correct and I don't know anyone that has suggested otherwise. Yet though if I were you I would have my wife get her license and learn the business. Your renewals on your book of business can then easily go straight to her. Now if she learns the business, if there is any desire I would think only concrete her future if the need arises, hopefully not but one never knows. My wife is still fighting me about getting her license but it so easy and I think she is ready too just to get me off her back. Of course in most states the spouse could get a temporary license easy enough but IMHO its easier now than waiting till the need arises.

 

[Crabcake Johnny]

Man what a great post. I've been after my wife to get licensed and she doesn't want to hear about it. It the safest thing she can do to protect herself in case I die. I have a very nice sized book of business and all she would have to do is service them and handle referrals. She just doesn't watnt to take the test.

Heck, after listening to me she knows everything:

Me: "Just closed a deal"

Lisa: "You do the HSA with the Suite Solutions?"

For life agents reading this thread I think it's important to state my position life insurance; everything takes a back seat to the DB. Perm life for estate preservation doesn't mean squat if the DB is $250,000 for me.

My wife with $250,000 needing $40K a year? If she spent $40K a year it's gone in 6 years. Now what. My son's 11 and we still have every bill including mortgage. She'll also need a new car by then. So exactly what estate would be preserved when my wife loses the house in foreclosure?

Sell what you want; perm, UL, WL, etc....just everyone make sure that the DB is sufficient is the insured died the next day.

 

[James]

And likely if she is anything like my wife, she calls you bull headed!

 

[Crabcake Johnny]

Me: "Got to quote someone at 1pm today"

Lisa: "What the story"

Me: "husband's 44 with high blood pressure, wife is 39 and healthy"

Lisa: "So it's off to Aetna if she wants more kids unless she's done then Assurant with the 25% increase for the husband. Let me know how it turns out."

Lisa: "You close out that open requirement on the Smith deal? They shouldn't have any problem with the $2,000 CDS"

 

[Cenla Agent]

Me: "Got to quote someone at 1pm today"

Lisa: "What the story"

Me: "husband's 44 with high blood pressure, wife is 39 and healthy"

Lisa: "So it's off to Aetna if she wants more kids unless she's done then Assurant with the 25% increase for the husband. Let me know how it turns out."

Lisa: "You close out that open requirement on the Smith deal? They shouldn't have any problem with the $2,000 CDS"

LOL! Sounds like a sales manager!

 

[Crabcake Johnny]

4 years of her listing to me talk to clients. She could teach health insurance sales. Still can't convince her to get a license.

 

[Insuranceman]

WOW people actually have $ 2,000 a month mortgages. Here in rural SE
Ohio you can still buy a halfway descent home for $ 50,000. Our mortgage is only $ 400 a month.

 

[Crabcake Johnny]

You buy a home in MD in a neighborhood for less than $300,000 and you'll keep checking to make sure your car is still outside.

 

[johnrocks]

my house note is 600 and I'm sittin on 6 acres and a pond(built it in 2001)

 

[James]

If my wife goes I just need enough of a DB so I can hire a Swedish nanny.

Have you price them lately???