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One thing I learned many years ago because I couldn't understand the reasoning for some low income people with burial policies that weren't big enough to pay for anything. I was telling them to just put the premium amount in a savings account each week and save up the money.
What I learned is, poor people usually think of their insurance policy the way we think of our net worth. When you hear them say "He died and didn't have any insurance" what they are really saying is he was a mooch and a deadbeat.
They consider people with SOME amount of insurance as responsible and people with no insurance to be irresponsible.
They really do use the cash value and take loans against these policies too.
I don't do much business with the lowest income people but they DO buy a LOT of small life insurance policies from someone. We have to understand that it's not just a burial policy to them...it's more like a bank account in their mind. It's forced savings that they would never do otherwise.
What I learned is, poor people usually think of their insurance policy the way we think of our net worth. When you hear them say "He died and didn't have any insurance" what they are really saying is he was a mooch and a deadbeat.
They consider people with SOME amount of insurance as responsible and people with no insurance to be irresponsible.
They really do use the cash value and take loans against these policies too.
I don't do much business with the lowest income people but they DO buy a LOT of small life insurance policies from someone. We have to understand that it's not just a burial policy to them...it's more like a bank account in their mind. It's forced savings that they would never do otherwise.