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Oh boy. Somebody's new.
#1 - You don't know how dividends work. A dividend RATE is completely different than a rate of return on a policy.
#2 - Because you don't know how dividends work, you are misrepresenting dividends and unethically replacing policies.
If your post is an example of the training at a captive agency... you're better off by NOT going captive.
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Misrepresentation and ignorance: A dangerous blend for ethics | LifeHealthPro
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Ever wonder why you don't get 7% per year for the first 10 years in the illustration?
Do the math sometime and figure it out.
I have. Here's the deal: company earnings surplus for dividends are distributed in a proprietary way - primarily: length of time the policy is in force, current cash values (may be affected by loans or not - depending on company), underwriting status, and other criteria.
That's why you want a favorable underwriting classification and keep the policy in force long-term... like a fine wine.
But if you're promising 7.1% per year from year one... you're going to have problems.
#1 - You don't know how dividends work. A dividend RATE is completely different than a rate of return on a policy.
#2 - Because you don't know how dividends work, you are misrepresenting dividends and unethically replacing policies.
If your post is an example of the training at a captive agency... you're better off by NOT going captive.
----------
Misrepresentation and ignorance: A dangerous blend for ethics | LifeHealthPro
----------
Ever wonder why you don't get 7% per year for the first 10 years in the illustration?
Do the math sometime and figure it out.
I have. Here's the deal: company earnings surplus for dividends are distributed in a proprietary way - primarily: length of time the policy is in force, current cash values (may be affected by loans or not - depending on company), underwriting status, and other criteria.
That's why you want a favorable underwriting classification and keep the policy in force long-term... like a fine wine.
But if you're promising 7.1% per year from year one... you're going to have problems.