Insurance is a Scam

[titeye]

Let's be honest. We all know there are some who have, in fact, been screwed by insurance companies. That's an undeniable fact! Those individuals have fact-based reasons for making such claims. Putting that aside for a moment....
Yesterday, a prospect calls me over to his house to ask me a few questions about insurance. Prior to arriving, I assumed we would continue a conversation we had a while back regarding Medicare, since he is disabled and on Medicaid. Instead, he asked me to explain a letter he received from Primerica, concerning a policy his godmother placed on him 14 years ago. As I am looking at it, he throws a policy in my lap. The policy, however, is through Mut.of Omaha, which he recently purchased after seeing a tv commercial. All the while I'm reviewing the letter, he's telling me "Insurance is a scam. Insurance is a scam." His godmother passed away recently and he thought he could cash it in, which clued me in that he was completely oblivious to insurance. After explaining to him that it was likely that the policy was term insurance w/o a cash value feature, he yells, "Insurance is a scam!" Sure enough, it was a 20-yr term policy and scheduled to renew in 6 more years. After explaining to him that the premium would continue to increase every 5 years, he shut it down and again yelled at me, "Insurance is a scam!"
Moving on to review the MoO policy, I observe that it was Graded. I asked him several questions about his health, which he responded favorably: Sixty years old, one pain medication for his back, non-smoker, cancer-free for more than 15 years, no history of any other health issues. When I asked him why he had a graded policy with a 2-yr waiting period, he shrugged his shoulders. He said the agent on the phone told him it would pay out upon death. When I read the policy aloud to him, he yelled at me again, "Insurance is a scam!!"
All the while I'm writing him up a new policy, showing how I'm saving him money, increasing coverage at the same time, and got him qualified for day-1 coverage, he's still yelling at me, "Insurance is a scam!"
After submitting his application and other docs electronically, he walks me to the door. As I'm reaching to open my car door, he yells out one more time, "INSURANCE IS A SCAM....BUT YOU'RE ALRIGHT WITH ME!!!"
He and I both busted out laughing!

 

[Al3x Lee]

Ladies and gentlemen, I present, an actual conversation I had in a comment thread on Facebook. The original post had nothing to do with insurance. The logic: Impeccable, The prowess: Righteous, and above all, he is not one of the sheeple who believes insurance is a real, viable product. Instead, he has pulled back the wool from over people's eyes and shown that insurance, much like a casino is an utter scam. Without further ado, I present a random Facebook man:

Random Facebook Person:
Salesperson are awful but there is no human being more despicable than an insurance salesman.

Alex:
Why's that?

Random Facebook Person:
Salespeople are motivated to sell you as much stuff as possible, often times they convince you to purchase things you don't even need. Not all salespeople are awful but the career is inherently unethical most of the time.
Insurance is basically the same as gambling. The goal of any company is to gain more money than they lose. If an insurance company pays out more money to its customers than it takes in, then eventually over enough time they will go out of business. The only way an insurance company or casino can exist is if they are gaining and the customers are losing.
Any business has the potential to be unethical but I can at least respect any business that provides a real tangible product or service for society.

Alex:
Isn't it the goal of every company to bring in more than they spend? By that logic, every company could be compared to a casino

Random Facebook Person:
A company who builds fences, will provide you with a fence. A grocery store will provide you with groceries.
Any company that takes your money with a possibility of getting more money back is not providing anything for society. The only way that you can have a positive experience as a consumer is if that company screws over enough other people to pay you back more than you paid in to it.

He has shown with his superior intellect that any company that produces is tangible product is worthy of your respect, but those who don't are not. By his argument, I can only presume he doesn't have a bank account, use the software on his computer, or have any insurance policies.

 

[shawnmwalker]

People don't understand this, it gets going about 2 mins in:

 

[Al3x Lee]

People don't understand this, it gets going about 2 mins in:

That's a great video, I've watched it before

 

[titeye]

Ladies and gentlemen, I present, an actual conversation I had in a comment thread on Facebook. The original post had nothing to do with insurance. The logic: Impeccable, The prowess: Righteous, and above all, he is not one of the sheeple who believes insurance is a real, viable product. Instead, he has pulled back the wool from over people's eyes and shown that insurance, much like a casino is an utter scam. Without further ado, I present a random Facebook man:

Random Facebook Person:
Salesperson are awful but there is no human being more despicable than an insurance salesman.

Alex:
Why's that?

Random Facebook Person:
Salespeople are motivated to sell you as much stuff as possible, often times they convince you to purchase things you don't even need. Not all salespeople are awful but the career is inherently unethical most of the time.
Insurance is basically the same as gambling. The goal of any company is to gain more money than they lose. If an insurance company pays out more money to its customers than it takes in, then eventually over enough time they will go out of business. The only way an insurance company or casino can exist is if they are gaining and the customers are losing.
Any business has the potential to be unethical but I can at least respect any business that provides a real tangible product or service for society.

Alex:
Isn't it the goal of every company to bring in more than they spend? By that logic, every company could be compared to a casino

Random Facebook Person:
A company who builds fences, will provide you with a fence. A grocery store will provide you with groceries.
Any company that takes your money with a possibility of getting more money back is not providing anything for society. The only way that you can have a positive experience as a consumer is if that company screws over enough other people to pay you back more than you paid in to it.

He has shown with his superior intellect that any company that produces is tangible product is worthy of your respect, but those who don't are not. By his argument, I can only presume he doesn't have a bank account, use the software on his computer, or have any insurance policies.

He doesn't realize it, but he is actually suggesting (and possibly believes) that everything he purchases is being sold to him at the manufacturer's cost. Not only does he not understand the insurance business, he doesn't understand the concept of business.

 

[Allen Trent]

Ladies and gentlemen, I present, an actual conversation I had in a comment thread on Facebook. The original post had nothing to do with insurance. The logic: Impeccable, The prowess: Righteous, and above all, he is not one of the sheeple who believes insurance is a real, viable product. Instead, he has pulled back the wool from over people's eyes and shown that insurance, much like a casino is an utter scam. Without further ado, I present a random Facebook man:

Random Facebook Person:
Salesperson are awful but there is no human being more despicable than an insurance salesman.

Alex:
Why's that?

Random Facebook Person:
Salespeople are motivated to sell you as much stuff as possible, often times they convince you to purchase things you don't even need. Not all salespeople are awful but the career is inherently unethical most of the time.
Insurance is basically the same as gambling. The goal of any company is to gain more money than they lose. If an insurance company pays out more money to its customers than it takes in, then eventually over enough time they will go out of business. The only way an insurance company or casino can exist is if they are gaining and the customers are losing.
Any business has the potential to be unethical but I can at least respect any business that provides a real tangible product or service for society.

Alex:
Isn't it the goal of every company to bring in more than they spend? By that logic, every company could be compared to a casino

Random Facebook Person:
A company who builds fences, will provide you with a fence. A grocery store will provide you with groceries.
Any company that takes your money with a possibility of getting more money back is not providing anything for society. The only way that you can have a positive experience as a consumer is if that company screws over enough other people to pay you back more than you paid in to it.

He has shown with his superior intellect that any company that produces is tangible product is worthy of your respect, but those who don't are not. By his argument, I can only presume he doesn't have a bank account, use the software on his computer, or have any insurance policies.

which congressional district in California does this random facebook person serve in the legislature.................LOL

 

[shawnmwalker]

Are insurance companies always true to the Law of Large numbers when it comes to race, or redheads, or, or, or, or.

 

[Al3x Lee]

People don't understand this, it gets going about 2 mins in:

I gave this another watch, it truly should be something every new P&C agent watches

 

[shawnmwalker]

@Al3x Lee , you'd be surprised how many seasoned agents learn from it as well! At the very least newbies should watch! At the very least! Thanks!

 

[Allen Trent]

@Al3x Lee , you'd be surprised how many seasoned agents learn from it as well! At the very least newbies should watch! At the very least! Thanks!

Didn't watch entire video, but the parts I watched were great & very informative.

The only aspect I didn't love & may have missed further clarification is the several times you mentioned 10% as the investment return & mentioned the stock market many times. Because of many regulations as to where carriers can invest & how much can be in the stock market, this does give even agents the wrong perspective that carriers are investing in higher risk/return securities. If I am not mistaken, a much greater percentage of carrier monies are invested in shorter term fixed securities, bonds, corporate bonds & commercial mortgages

According to NAIC, 2022 was a much improved investment year for P&C carriers, but it was only a 3.7% yield.

Aside from that, I really liked every other item & clarification. I just think consumers & agents need to realize how limited carriers are in investment returns, otherwise agents & consumers expect greatly improved rates when stock market has good years, but too little is invested in equities to move the needle