Time to renew "Buy Term & Invest The Difference" ?

[myinsurebiz]

I know it's not " final expense " - but, I also know that being here will bring out the best comments.

So - is it time to renew the "Buy Term & Invest The Difference" concept?

With all the online Investment sites - someone can easily start their own investment portfolio and " Invest The Difference " . . .

Easier than ever to qualify for simple issue non-med Term coverage too - especially with ROP options. Get issued and paid in days versus the weeks, even months, in the 80's.

Back in the day - there weren't any Living Benefits, nor very few Riders. Term is more attractive now.

Also - there wasn't any IUL's, GUL's, etc . . . Another option.

Many auxiliary products too - Final Expense, Hospital Indemnity, DVH, Cancer, Worksite, Annuities and even Medicare . . .

Just thinking outloud.

 

[myinsurebiz]

Top 2 fully underwritten Term carriers with quick issue and eApp / Phone applications?

Most of these Millennials are in great health and could qualify for better rates / coverage.

 

[Rob Lion]

Top 2 fully underwritten Term carriers with quick issue and eApp / Phone applications?

Most of these Millennials are in great health and could qualify for better rates / coverage.

Protective has the fastest turn around time but hey are tight on UW. ANICO is a great company and has living benefits.

 

[Tahoe Ray]

I know it's not " final expense " - but, I also know that being here will bring out the best comments.

So - is it time to renew the "Buy Term & Invest The Difference" concept?

With all the online Investment sites - someone can easily start their own investment portfolio and " Invest The Difference " . . .

Easier than ever to qualify for simple issue non-med Term coverage too - especially with ROP options. Get issued and paid in days versus the weeks, even months, in the 80's.

Back in the day - there weren't any Living Benefits, nor very few Riders. Term is more attractive now.

Also - there wasn't any IUL's, GUL's, etc . . . Another option.

Many auxiliary products too - Final Expense, Hospital Indemnity, DVH, Cancer, Worksite, Annuities and even Medicare . . .

Just thinking outloud.

Yes. Buy term and invest the difference.

If you have the fortitude to do so...

 

[DHK]

Just thinking outloud.

Yeah... um... you can stop that now.

 

[KRobby]

I know it's not " final expense " - but, I also know that being here will bring out the best comments.

So - is it time to renew the "Buy Term & Invest The Difference" concept?

With all the online Investment sites - someone can easily start their own investment portfolio and " Invest The Difference " . . .

There's over $17 trillion in net assets in mutual funds registered in the United States.
Keeping insurance and investment needs separate is not a new concept or anything to renew.
Maybe term fits the LI needs perfectly, maybe it doesn't.

 

[HoosierLife]

Might be cool to have a product where 60% goes toward insurance and 40% goes toward a vanguard fund automatically.

But then you'd some extra licenses to sell it.

Obviously the problem with BTID is that people don't invest the difference. If it was just part of the monthly payment, maybe it could work.

 

[shonceman]

Might be cool to have a product where 60% goes toward insurance and 40% goes toward a vanguard fund automatically.

But then you'd some extra licenses to sell it.

Obviously the problem with BTID is that people don't invest the difference. If it was just part of the monthly payment, maybe it could work.

As I understand them, variable insurance products (which require securities licensing) sort of address that idea of combining insurance with investment accounts.

Our FE clientele is more likely to BTSD (Buy Term Spend Difference)! Over the years, many of my clients have been tempted by the Primerica termites. If they'll talk to me about it, I don't normally lose them. I've replaced far more badly placed term policies than I've ever lost. But it's an appealing conspiracy theory to believe that the big, bad, insurance company is getting rich at my expense, but my friend at work has learned the truth and is here to rescue me! Unfortunately, those that fall prey really do intend to buy term and invest. They might even do it for awhile, until some emergency comes along (which it always does). So they put off the investment part, then before they know it, their 20 years is up on the term policy. Now they have neither investments nor insurance!

When I was running debits at AGLA, we could offer a rider called the Supplemental Annuity Benefit Rider (SABR). It was a fixed interest account that was packaged with an insurance policy. So, for example, let's say Ms Smith's premium was $32.50. You could round it up to an even $35 or $40 with the difference going to the SABR. It was a nice add-on for people with no savings discipline. If they had an emergency need, they could get money from the rider instead of getting a policy loan. It also helped a few kids with college money. If they died, the proceeds in the account were added to the insurance proceeds as a combined death benefit, so it could provide a hedge against funeral cost inflation, much like Option B on a UL. All in all pretty useful for a low income clientele. I'd love to be able to offer something like that again. Unfortunately, not many agents wrote it. I think there may also have been some issue with state insurance departments' view of it. So the company eventually scrapped it.

 

[KRobby]

Obviously the problem with BTID is that people don't invest the difference. If it was just part of the monthly payment, maybe it could work.

Your opinion is probably a bit skewed from working with so many poor people. For most, it's the opposite. They'd rather talk and participate in growing their money for a goal or retirement than paying insurance premiums or additional premium. 89% of the $17.7 trillion in mutual funds is held by retail investors.

 

[casailio]

Oh No!! Did you fall for the Primerica lie = buy term, invest the difference and come work with me. You'll make 1000'$!!!