I get what you're saying and I'm not knocking your products either, everyone has their preference. I've just seen a lot of agents/companies (not saying you) push the more expensive UL or whole life policies, (God forbid a VGLI, don't even get me started on those, lol) because they either want the higher commission, or that's what they've been taught/pushed to sell and don't even offer Term, until we approach the client and show them how much coverage they could be getting and how much they would be saving. And I've had this happen; when they go to cancel and explain to their agent why they're canceling, the agent says, well we can get you a Term policy if that's what you want. And the customer is pissed because they were never presented with the option of Term Insurance because for whatever reason the agent thought that's what was best for their client and didn't present them with all the options. That has been my experience. If the customer already has a Term policy, and after reviewing their policy with them line by line. If we see they have a good policy; properly protected and have a good premium, we congratulate them and tell them; hey you're good.
In our presentations, we fully explain Cash Value type products vs Term and always talk about the investment aspect, and paying off their debt faster. Depending on their age; how to budget, invest properly so that by retirement they'll have no debt and enough money in a retirement account to be self-insured. If they're a little bit older and in a lot of debt, that's a different conversation, of course they will need insurance into and beyond retirement.
For example, this is what I've seen and it doesn't make sense to me. Having someone paying upwards of $200 per month for one family member for a cash value policy earning 3% or less, with no cash value build up in the first 1-5 years, depending on the company, and a death benefit of $150,000. Especially when the beneficiary can't keep both, the death benefit and cash value when the policyholder dies. Yes, they can get a loan on the cash value and "borrow" their own money but have to pay it back at a much higher interest rate than they were originally earning. To me it makes more sense to get the entire family covered, mom, dad and kids with a Term policy (depending on their age and health) for less than $150 per month for 10 times their yearly income, which is what every insured should have, to have their families properly protected. Then invest the difference of what they were already paying, as well as taking the cash value from the old policy, and putting it into an investment product. We can start the investment process right then and there for as little as $25 per month. Of course, we would advise it would be in their best interest to put in more per month, but whatever they feel comfortable with.
But if they are already used to paying $200 per month, they are more likely to continue spending that amount, or close to that amount, if they know that not only do they have more insurance coverage for less, but they're also going to be earning more interest on their money, and their beneficiary can keep both if they die before retirement. If saving for retirement was the goal when buying the Cash Value policy, its still going to be their goal at the time they switch. I've found they have no problem making that change if it makes sense to them. If they don't see the value in what we have to offer (not everybody does) and they feel a Whole Life policy or UL is the right vehicle for them, then we don't push the issue. No hard feeling, they either keep what they have or when we end the appointment we can refer them to one of the companies we partner with that offers what they are looking for. But because we do partner with various other companies we can offer them so much more than just affordable life insurance, we're able to help them in other capacities; not going to go into all of the details here, because I'm not trying to advertise. But I've worked for a few other companies and this hands down is the one for me. Not saying yours is wrong and mine is right; this just makes sense to me that's all, as I'm sure yours makes sense to you. I love this company, we're a family, this is where I feel at home.
Hey, I've enjoyed our discussion. I love hearing other peoples point of view. I wish you all the best.
