you are a scammer if you sell UL and WL

Jan 14, 2008

  1. RedDrum1
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    RedDrum1 New Member

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    I always get frustrated when I talk to Dave Ramsey listeners who think if you are suggesting anything other than term life you are a scammer.

    Don't you know that Dave teaches that all I need Is term life. Yet my heart always brakes when his listeners call in and now they have cancer and their term life policy is about to expire. They call the show crying and Dave still dose not budge.

    He also feels that once you are out of debt you will have so much money that you can self insure. At some point in your life you don't even need term.

    here is a link to him talking about this issue



    So whats the answer?

    What can we tell these people? maybe a combination of both UL and term?

    I don't have any answers just questions please help.
     
    Last edited by a moderator: Oct 8, 2017
    RedDrum1, Jan 14, 2008
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  2. salpro22
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    salpro22 Guru

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    I've talked with a few Ramsey listeners and all of term morons comes to mind. I'm sure their are a few smart listeners out there (probably agents) who understand the mechanics of life insurance. I had one guywhom "allegedly" makes $150,000 a year and wanted to know if I could beat a $80 a month premium for a 15 year term life policy. I told him I could with somebody who had an IQ north of 80 and hung up......Oh yeah, price shoppers as well. You cannot fix stupid.
     
    salpro22, Jan 14, 2008
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  3. James
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    James Guru

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    I find the die hard Dave and Suze's fans are best left alone till they grow out of it! Their basic ideas are sound, get out of bad debt or all debt depending upon which one you listen to. Yet, neither seem well schooled on various investments and insurance needs. Take comfort, as we disagree with them on insurance the financial world takes exception to them on their so called financial advice.

    Once again, when you meet someone that touts the BTID, simply ask them about their returns. If they claim 20% or greater let them be, I seriously doubt it but, I see no sense on calling them on it. You can not reach everyone, sometimes its best just to walk away.
     
    James, Jan 14, 2008
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  4. Mr. Bill
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    Mr. Bill Guru

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    Maybe ask them how their parents afford retirement. 10-1 there's a pension there that these clowns won't have.
     
    Mr. Bill, Jan 14, 2008
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  5. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    I certainly keep an open mind with clients. But, I must admit that I have no permanent coverage on myself, and very little on my wife.

    For us...I have been fortunate enough to invest "the difference" in tax-deferred or tax free vehicles.

    The real trouble is when clients buy term and stop investing the difference. That's a bad recipe.
     
  6. James
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    James Guru

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    If you really want, you can play the Ramsey game to show his math isn't all that great. Basically you challenge his assumption of paying off the debt of least amount (which is at the heart of his plan), yet you can save a lot of money if you attack the debt of greatest cost. It just seems logical to me, plus you can always play the revolving credit card game to save interest while paying it off. Something I doubt Ramsey would support?

    Let us assume three loans,

    Auto Loan, $5,500 at 7%

    Credit Card, $7,400 at 12%

    Bank Loan, $14,000 at 8%

    Now Dave would have us pay the smallest loan first, the auto loan while paying minimum on others. You see the problem here? The credit card loan of nearly twice the interest rate is going to build a lot quicker then the Auto Loan!

    Using Credit Cards to get out of debt? This comes with a big "IF", if they still have good credit, done it myself. You go out and secure a credit card or multiple cards, that comes with "transfer balance" and "12 months free/deferred interest", you simply transfer the balance and start paying that bad boy off! Now if you can not pay it off within 12 months have another one ready to transfer in the eleventh month. Now if their credit is shot this is not an option.
     
    James, Jan 14, 2008
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  7. Crabcake Johnny
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    Crabcake Johnny Guru

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    The bottom line is your client needs the proper DB. Without that it doesn't matter what you sell.

    After a needs analysis if it's determined that the DB needs to be $500,000 and they can't afford a perm. policy with a $500,000 DB then it's a term sale, plain and simple.

    If they can afford a perm policy with a correct DB then we have a good discussion.
     
  8. James
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    James Guru

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    That is why a complete review and plan is needed, this assumption is totally off base and does not reflect any reality.
     
    James, Jan 14, 2008
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  9. somarco
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    somarco GA Medicare Expert

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  10. LGilmore
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    LGilmore Guru

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    nice link. Somarco, my sentiments exactly...

    "Because life is full of surprises."

    Convertable term. Even with the termites, it gives them an out. I will not get into a which is better arguement with a client. If they want term, they get term. Convertable term. Because simply put in 20-30 years from now they find they are wrong, they have an out. I will not debate their strategy, which more often than not is powered by pie in the sky returns and exact expectations of the future. I just simply agree and add the idea of "isn't it amazing that everything you've planned so far has turned out exactly as you hoped?" ;)

    Find me a person who's life plans are exactly as planned and .....

    If they want to buy insurance twice.. no worries
     
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