Whole Life Policy Review

[WinoBlues]

In general it is true. Any rate up you get now, will likely equal the increased COI two or three years from now from being older.

And if I had $100 for every client and every prospect that claimed they would be rated better in 1 or 2 years from now because they were going to lose weight or would stop smoking or whatever... I could retire a whole lot earlier. What happens if you have another wreck? Or a speeding ticket or two? Are you telling me that you never ever speed? There is a small chance that what you say could be true... but there is a much greater chance that it will not be true... regardless of your driving record.

In the next 2 years you could also develop cancer or some other disease and not be able to get any life insurance at all...

Yeah but...........

 

[scagnt83]

Yeah but...........

Coulda woulda shoulda... then real life slaps you in the face

Im sure you have 3 times the amount of stories that I do of people who put off coverage only to get a condition that made them uninsurable... or even worse died.

 

[WinoBlues]

I just realized this isnt necessarily true. I'm in my 20's and I just had two car accidents last year. If I stay in shape and have a clean driving record after 2 years I can qualify or cheaper insurance.

IF. If only. Shoulda, Woulda, Coulda

Assuming those two accidents were at fault is someone else going to start doing the driving?

Are you going to tell your chubby prospects to lose 20 lbs and call you back in a year?

What scagent said.

 

[AboutThatLife]

In general it is true. Any rate up you get now, will likely equal the increased COI two or three years from now from being older.

And if I had $100 for every client and every prospect that claimed they would be rated better in 1 or 2 years from now because they were going to lose weight or would stop smoking or whatever... I could retire a whole lot earlier. What happens if you have another wreck? Or a speeding ticket or two? Are you telling me that you never ever speed? There is a small chance that what you say could be true... but there is a much greater chance that it will not be true... regardless of your driving record.

In the next 2 years you could also develop cancer or some other disease and not be able to get any life insurance at all...

True. What has aggravated me, is speed camera tickets have started showing up on your insurance now. So, it will be quite hard to get that "preferred" rate. I can avoid the accidents, can't avoid 40MPH speed trap cameras on the interstate.

 

[scagnt83]

I'm always baffled by the small mindedness that some agents have regarding life insurance. Some people really do live in a color-by-numbers world.

Needing life insurance and wanting it for it's safe cash accumulation and tax benefits are two completely different things.

Needing people to buy term insurance to support your business and wanting people to buy term to support your business are two completely different things as well

 

[WinoBlues]

Coulda woulda shoulda... then real life slaps you in the face

Im sure you have 3 times the amount of stories that I do of people who put off coverage only to get a condition that made them uninsurable... or even worse died.

hahaha, great minds.....

Yup, sadly I have a ton of them. I get calls from family members that find my card in a person's "insurance" file. They call me hoping there is a policy. Many time there is not. People kick the can down the road till they run out of road.

 

[DHK]

People generally don't change. It's not so bad for the 'coulda, woulda, shoulda'. That supposedly shows remorse for poor decisions.

It's the delusion of the word "gonna". "I'm gonna do x, y, and z. You'll see."

It's the same as planning a vacation to "Someday Isle".

I take people as they are now. If they change, great. We'll get you re-examined and see if you qualify for a better rate. I'll see them in a year anyway. If not, they still have the offer of coverage (hopefully) to take advantage of today.

Just got to be real with them, even and especially when they aren't being real with themselves. That's the emotional and 'art' to this business that isn't covered in any of the industry textbooks. There's asking questions to get them involved, and then there's being completely frank with them - because you care and you don't want them deluding themselves.

 

[LGilmore]

I just realized this isnt necessarily true. I'm in my 20's and I just had two car accidents last year. If I stay in shape and have a clean driving record after 2 years I can qualify or cheaper insurance.

Do you really want to go with this statement? You should maybe think about it a bit because well you're exposing your thought process here and I am just shaking my head.

 

[WinoBlues]

Do you really want to go with this statement? You should maybe think about it a bit because well you're exposing your thought process here and I am just shaking my head.

That.

Larry, are you more insurable today than you were two years ago?

 

[Golfnut2112]

In all fairness, you started selling life insurance when we had historically high interest rates. Which meant that WL dividends were at historic highs (and UL interest rates). Since the early 90s, interest rates have steadily declined. Which in turn as caused WL dividends & UL interest rates to decline.

As agents, we need to be aware of how the economic environment affects the product we sell and set client expectations accordingly. Im not saying that you dont, just making a general observation based on your comment.

I also agree that a Roth is a great thing to do. Which is better? Depends on what he values. If he has the money he should do both imo. If he doesnt have the money then he can always do the Roth... but he cant necessarily always do the insurance... and the insurance will never cost less for him than it does today. Very few people regret purchasing a quality WL policy 30 or 40 years down the road, especially if it is overfunded.

You got that right!! When I started they were showing UL's at 11% and paying premiums for 7 years. Who would have thought interest rates would be on a 30 year decline?