Rob Lion
Guru
- 653
Ran across this video this morning while having my morning coffee and decided to read the comments and i'm generally confused why there is so much hatred and and misinformation toward whole life.
Why does America hate whole life so much?
- Thread starter Rob Lion
- Start date
Ran across this video this morning while having my morning coffee and decided to read the comments and i'm generally confused why there is so much hatred and and misinformation toward whole life.
- 2,261
Multiple answers:
They wait too long to apply so the premium is high
They don't see the value of a premium which will not change
They listen to TV and radio commercials which say get 1M for pennies per day
Big Lou
They wait too long to apply so the premium is high
They don't see the value of a premium which will not change
They listen to TV and radio commercials which say get 1M for pennies per day
Big Lou
- 4,023
Ramsey
- 11,274
By the way, America is generally woefully IGNORANT about the value of whole life insurance.
Most AGENTS are woefully ignorant about the value of whole life insurance.
Once an agent understands that it's not about rate of return, but about the miracle of uninterrupted compound interest and collateralizing their policy... then everything opens up.
The Confessions of a CPA book series by Bryan Bloom (now fully available on Kindle) is a great resource for agents and the public alike.
Most AGENTS are woefully ignorant about the value of whole life insurance.
Once an agent understands that it's not about rate of return, but about the miracle of uninterrupted compound interest and collateralizing their policy... then everything opens up.
The Confessions of a CPA book series by Bryan Bloom (now fully available on Kindle) is a great resource for agents and the public alike.
It seems that due to the state of our education system, America is woefully ignorant about most things... And, before someone claims I am blaming teachers, they do not set the curriculum or write the text books.... Plus, the newer teachers are the product of the education system that has been failing its students for years so they really don't know any difference..
- 5,484
That right there is the biggest reason. 98% of the folks licensed to sell it believe the opposition rather than learn the product.
But one cannot underestimate the damage done by Art Williams's campaign in the 70's and 80's. "Buy Term, Invest the Difference" is just one example of the mass gullibility of the American consumer.
As mentioned, Americans are uneducated in the areas of money and wealth. I believe that the avg person doesn't understand life insurance very well at all, and certainly not perm life and the value it can have.
Many people dislike all insurance products. Some folks pay massive amounts for Health, P&C, etc... and it keeps rising. I've heard folks say... life insurance, I can't use it till I'm gone, so for them they don't want to spend much on it. They fall into the main stream thought process for most things is "cheaper is better", and the influential folks in the media that push buying TERM only (and for the cheapest price) only makes it worse. You end up with culture that generally steers clear without doing due diligence. I have yet to find someone that gets educated on it that doesn't have a totally different opinion of it. They may not buy it, or be a good fit....but they now know the difference.
As for the btid, yep that made an impact for sure. Still is. But most folks that bought into that, they did btsd, and now have no money or life insurance cause their term expired.
Many people dislike all insurance products. Some folks pay massive amounts for Health, P&C, etc... and it keeps rising. I've heard folks say... life insurance, I can't use it till I'm gone, so for them they don't want to spend much on it. They fall into the main stream thought process for most things is "cheaper is better", and the influential folks in the media that push buying TERM only (and for the cheapest price) only makes it worse. You end up with culture that generally steers clear without doing due diligence. I have yet to find someone that gets educated on it that doesn't have a totally different opinion of it. They may not buy it, or be a good fit....but they now know the difference.
As for the btid, yep that made an impact for sure. Still is. But most folks that bought into that, they did btsd, and now have no money or life insurance cause their term expired.
I remember people saying it was the CFP's who were spawned by the broker dealers (Wall St.) that launched a propaganda campaign because they wanted all those premium dollars for themselves. So the middle market stopped buying it (remember when Met Life and Pru were big?).
So now permanent insurance is marketed and sold exclusively to the upper markets by the likes of NML, NYL, etc. That's an over simplification, but you get the idea.
p.s.-Also, hardly any pensions these days, so the dollars are going into 401k (Wall St.).
So now permanent insurance is marketed and sold exclusively to the upper markets by the likes of NML, NYL, etc. That's an over simplification, but you get the idea.
p.s.-Also, hardly any pensions these days, so the dollars are going into 401k (Wall St.).
- 11,274
It started well before all of that. Halsey Josephson, CLU wrote this book back in the late 60's - before CFP, before A.L. Williams, etc.
Amazon product ASIN B0006BWJTS
Amazon product ASIN B0006BWJTS
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