Tips for New Agents

[andy_M]

Because I can use my cash values in more than one place.

But we can compare the S&P 500 from 2003 to 2008? lol.

This video was recorded 7 years ago, so you'd need to adjust it to 45,000 or so.

First- thank your for the reply. I did not intend a pissing match.
Here's what I see: SPY (which is the S&P) would have a 60% gain of a dollar invested in 2003 to 2008. At it's worst point that 2003 dollar hit break even in the middle of the 2009 collapse. That is ignoring the annual 1.8% dividend on the S&P. The video you linked to ignores dollar cost averages and dividends and presumes you chunk all your money in at the highest point and pull it all out at the lowest. An apples to apples comparison has the investor making the same contributions evenly - including during those lows.

Presuming you die (which is why they call it life insurance), that cash value has a 100% loss, so even the lowly DOW is looking like a pretty good return.

If you want to sell whole life, sell whole life. I don't think whole life companies are paying your commission by putting the money under a mattress or investing it into whole life which you are saying is better than the stock market...they're betting on the US economy.

 

[andy_M]

You have assumed several things:

1. The client wants term.
2. The client can qualify for term.
3. The client is looking for something to preform... maybe they just want to have coverage.
4. That they are looking at spending a large amount of money.
5. That the market isn't going to go down... like in the 20's.

Your view of what you are selling is your view. Understand your market before you go proclaiming what you are only going to offer.

? ​

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1- Most of the life producers on here are so desperate to find customers they use autodialers hitting random people. Of all the agents I interviewed before going into this, Life was a cross sell AFTER selling auto/home. So seriously, before you called, the client didn't really want anything.
2- That is a legit scenario. (I mean to offer whole life, if medical conditions dictate)
3- In that scenario, term is a better buy.
4- I assumed they wanted to spend as little as possible on insuring themselves against dying too soon.
5- Yeah- if you pull your money out of the stock market at rock bottom, you *might* lose money (but actually you won't over the span of a lifetime). Are you telling customers they get to keep that cash value when they die or are you selling them return of cash value which is really just term tacked onto the worlds worst savings account.

you're insuring an 80 something against dying too soon?
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[DHK]

Presuming you die (which is why they call it life insurance), that cash value has a 100% loss, so even the lowly DOW is looking like a pretty good return.

Net death benefit = cash values + net amount at risk - any outstanding loans.

 

[toolbelt]

Don't believe the hate on Term policies. I am a Dave Ramsey fanatic and Term is the only Life product I plan on selling.

Do you think the fact that Dave Ramsey's radio show (pre-tv show) co-host Roy Matlock Jr from Primerica had anything to do with that????

 

[toolbelt]

That is ignoring the annual 1.8% dividend

And you are ignoring the commissions and annual fees associated with taking investments through the wrong broker. Especially so with all the index funds available direct online. And if you're overpaying on the wrong term policy, that's even less money left to invest.

 

[andy_M]

And you are ignoring the commissions and annual fees associated with taking investments through the wrong broker. Especially so with all the index funds available direct online. And if you're overpaying on the wrong term policy, that's even less money left to invest.

Not sure where you're buying index funds at. The major indices (DIA, SPY, QQQ) don't hit you with fees and trades at most of the brokerages are under 10 dollars and none of them charge you interest to get to your own money.

You can overpay for term or whole life...

 

[andy_M]

Do you think the fact that Dave Ramsey's radio show (pre-tv show) co-host Roy Matlock Jr from Primerica had anything to do with that????

Don't know, I started following in about 2008. Zander is a sponsor and their goto for term. If you're asserting he pushes term for a reason other than its cheap and gets the job done, you'll need to provide more than an emoji, because the math aligns with the philosophy he evangelizes.

I get it, a lot of you guys are trying to pay the mortgage with whole life commissions and I'm not. I've spent a little more time on this thread than I care to, so best of luck to ya.

 

[Life Hawk]

Don't know, I started following in about 2008. Zander is a sponsor and their goto for term. If you're asserting he pushes term for a reason other than its cheap and gets the job done, you'll need to provide more than an emoji, because the math aligns with the philosophy he evangelizes.

I get it, a lot of you guys are trying to pay the mortgage with whole life commissions and I'm not. I've spent a little more time on this thread than I care to, so best of luck to ya.

Was listening to Jim Rohn on my way north to pick up my son from school. I'll pass along a little tid bit for you... be a student of the business, learn to listen.

Because based on your post... your not.

 

[DHK]

I get it, a lot of you guys are trying to pay the mortgage with whole life commissions and I'm not.

https://davidkinderfinancial.wixsit...sell-cash-value-policies-for-the-commissions”

 

[toolbelt]

Don't know, I started following in about 2008. Zander is a sponsor and their goto for term. If you're asserting he pushes term for a reason other than its cheap and gets the job done, you'll need to provide more than an emoji, because the math aligns with the philosophy he evangelizes.

I get it, a lot of you guys are trying to pay the mortgage with whole life commissions and I'm not. I've spent a little more time on this thread than I care to, so best of luck to ya.

Being financially independent such as DR has everything to do with the income he receives from his J-O-B and nothing to do with which form of life insurance he chooses. I would venture to assume that while he may have term insurance himself, he most likely also has some form of whole life as well. In any case, I'm not a fan of anybody who uses religious affiliations to target, rather than help.