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

[junkman]

It doesn't matter. They will get old and convert if you sell something to maintain that option. You will want to sell something when you're old. Best way to do that is to sell something now - and stay in contact.

 

[shonceman]

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.

Since we're in the FE forum, when @HoosierLife says "most people" I assume he means our particular clients. Unfortunately that also seems to be Primerica's target market. More sophisticated and/or affluent people usually get a much better rate for term, leaving them even more "difference" to invest.

 

[KRobby]

Since we're in the FE forum, when @HoosierLife says "most people" I assume he means our particular clients.

You're probably right on that and that's what I figured too.
OP meant for the discussion to be fe market aside though but posted in this forum for responses. Maybe op is just stirring bahaha

More sophisticated and/or affluent people usually get a much better rate for term, leaving them even more "difference" to invest.

And they're not looking at it as a "difference" if they're not looking at whole life premium as the denominator. There's actually more premium sold in annuities than life insurance and look at how small the annuity market is by comparison of other investment vehicles.

 

[myinsurebiz]

Yes. Buy term and invest the difference.

If you have the fortitude to do so...

Most always forget the "invest" part . . .

There has to be an easy way to make this work. High face value while young and exposed. Long term investment goals for retirement. Retire at 55 or 60 too - not when they too old to do anything.

Most Insurance Agents don't have the necessary licensing for the "investment" part.

 

[myinsurebiz]

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.

Agreed. But need a product that the everyday Insurance Agent could sell.

 

[myinsurebiz]

It doesn't matter. They will get old and convert if you sell something to maintain that option. You will want to sell something when you're old. Best way to do that is to sell something now - and stay in contact.

The conversion option is attractive since they have no health issues to worry about.

 

[Life Hawk]

Agreed. But need a product that the everyday Insurance Agent could sell.

People purchase insurance because of percieved risk, they invest because of a percieved gain.

Two different mindsets. Two different emotions.

 

[shonceman]

Most always forget the "invest" part . . .

There has to be an easy way to make this work. High face value while young and exposed. Long term investment goals for retirement. Retire at 55 or 60 too - not when they too old to do anything.

Most Insurance Agents don't have the necessary licensing for the "investment" part.

Well, I used to sell max funded UL's that way, back when interest rates were still in double digits. I remember a policy illustration for a young guy spending about $30-35/month showing $1 million in the accumulation fund by age 65. On a fixed interest account! At that age (26) I believed my manager (who was about 29!) when he said there's no way interest rates would ever drop back into single digits! Of course, interest rates had only ever gone up for our entire life at that point. I finally got with a slightly older manager who warned that the interest rate bubble would burst, and taught me to be more cautious with illustrations.

 

[rousemark]

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.

What do you mean "renew"? It has never died down. Termites have always been around, even long before Art Williams..

 

[HoosierLife]

I had an agent schedule an appt to chat with us and she was from Primerica. She said she was out of the California office where most of the production comes from.

She'd written, I can't remember exactly, but it was a decent amount like $60k in 6 months. But she wanted access to a real system with leads and stuff because she had run out of her warm market to sell to.

I started to explain FE and started to cover the WL aspect up front and told her I understood she was coming from Primerica and I know how they teach her.

She went on to lecture me that she doesn't believe in Whole Life, not because of her Primerica indoctrination, but because of what had happened personally to her.

She had had like 8 people die in her family in the last year. All the folks who had whole life policies had taken out loans and didn't have enough money to bury them.

If they had only had Term then this wouldn't have happened.

I thanked her for her time and hung up. Convinced against their will and all that.