Why sell permanent Insurance?

[Delta76]

I agree there is no one size fits all. The advantage to permanent insurance is it gives you options:

1. Continue it for life, guaranteed to collect.
2. Surrender it and take the cash value.

ROP is basically forced savings, but it doesn't give you the option to continue the policy if health conditions prevent buying another policy. Convertable term gives the policy owner an option to convert into a permanent insurance policy, but the later it gets in life, the more difficult it makes it for the insured to make it cash flow for their situation (in general). I personally am a fan of blended policies to cover the need and preserve some options for continuing the coverage later in life.

 

[moonlightandmargaritas]

Here is another reason to sell permanent life insurance:

This fund is exclusively invested in stable-value group annuity contracts from major U.S. life insurance companies—not volatile mutual funds.

I'm a little confused...it's referring to group annuity contracts, not permanent life insurance...

 

[CHUMPS FROM OXFORD]

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[Mark]

This listing rating shows best insurers. What do you think of this list and have you seen other sources?

That website sucks!! They even place a paypal button up top asking you to just give them money because they showed you a list of companies ratings....

and since you have did noting but post this link over and over, I have a feeling it is your website...

But then again, I think the website sucks and it low class asking clients for money like that.

 

[STIBROKER]

That website sucks!! They even place a paypal button up top asking you to just give them money because they showed you a list of companies ratings....

and since you have did noting but post this link over and over, I have a feeling it is your website...

But then again, I think the website sucks and it low class asking clients for money like that.

he already has his own thread....

Insurance Agent Forum

 

[arnguy]

Simple answer to the title of this thread: Because it is permanent!

 

[xrac]

I'm a little confused...it's referring to group annuity contracts, not permanent life insurance...

My point is that stable value products like annuities or whole life are not subject to the wild fluctuations and risks of other instruments.

 

[Franz Kafka]

Simple answer to the title of this thread: Because it is permanent!

Jawohl. Some sell permanent life insurance because SOME PEOPLE WANT TO BUY permanent life insurance. All the rest of B.S. is exactly that - B.S.

 

[padthaiforlunch]

I can on my own (on a yellow legal pad (don't need leap)) easily show how taking out a 30 yr loan and paying the difference of a 15 yr loan (in a safe investment account) that one could easily pay off the house quicker with the 30 yr loan! Even if you earn 2% points less on the investment side as you do on the loan side. This is basically what I use for more normal people and promoting the use of safe investment such as a Annuity or Life Contract. Yet I wouldn't do it if I had to show anything greater than 5% to make it work. Yet when it comes to Realstate investors or House Flippers, the guarantee or protection is all that is needed to show to make it a winning idea.

Here are a few key points taken directly from the study:

* We show that a significant number of households can perform a tax arbitrage by cutting back on their additional mortgage payments and increasing their contributions to tax-deferred accounts (TDA).

* We show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice. For these households, reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar, depending on the choice of investment assets.

* In aggregate, these mis-allocated savings are costing U.S. households as much as 1.5 billion dollars per year.

http://www.strategicequity.com/TileItems/TI182/FedStudy-Mortgage_pre-payment_tradeoff.pdf

 

[termlifeinsuranceus]

For small amounts, like 100K, I find most people will want that coverage guaranteed for life. But by the time most people are in their 80's you have to figure they should have paid off most of their debts and won't need a large amount of coverage anymore (of course, in some cases, clients still will need large amounts), but what I end up doing in many cases is selling a large term policy along with a small GUL.