Real Horror Stories.

[DHK]

I don't think that 'scare stories' or 'horror stories' are the best way to go in a meeting with a client.

Either the client sees the benefits of insurance coverage (as presented) or not.

Either the client sees the economic benefits of permanent life coverage or not. If not, have them buy term.

If you have to try too hard to 'convince' someone to buy coverage... that policy will lapse.

Find motivated people... don't try to motivate them, at least not too hard.

Explain the benefits and present the option to buy... but don't scare them into buying.

I remember on another 'insurance' forum where the forum owner talked about getting a report of 1st year claims statistics from one or more life insurance companies - people who bought and died in the 1st year of owning the policy. It's that kind tactic that can lead people to think that insurance agents are also related to the grim reaper... and that it's better to avoid us than to buy coverage.

Now, there is an exception to this for me. When you're talking about disability coverage, I do like to talk about how benefits can be paid. Here's one piece of literature I like:

https://www.standard.com/di/forms/di/mkt/14319si_sny.pdf

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This particular thread has a story of a guy I was helping with a 401k rollover... and he was murdered. But I'm not about to use this story to tell people that's why they should buy. It IS a story as to why I focus on life insurance though.

http://www.insurance-forums.net/for...about-getting-out-biz-t75458.html#post1004732

 

[yogooglethis]

Have had people insisting they didn't need life insurance because they were not going to die.. they were going to be raptured.. since I started in 1971... Since the rapture has not taken place, I assume some of them are now well over 100 years old..

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Not really a "horror" story but I met a fellow this afternoon that I first met when I was working a debit in 1971. I sold him some WL insurance at that time. We were talking about how long we had know each other and how we first met. He said, "I sure wish I still had that insurance today instead of dropping it." He had bought into the BTID with AL Williams. Now, he has no insurance and doesn't feel he can afford the premium. At least with the WL, he would have more than enough Paid up to pay funeral expenses. As I have said before, I have never met anyone face to face that has said they were happy they bought term as their sole life insurance product.

need a marketing piece that addresses the high cost associated with premature rapture - especially for the un raptured loved ones left below.

 

[Big Stick]

My Dad.
Had a 250k term insurance policy he was paying into for over 20years. By the time he was 60, he became disabled with Emphysema, on oxygen full time. He was one of those guys who wouldn't share or open up to others. He also never asked for help.

He was paying $850/month for that term policy by the time he was living on a fixed disability income, alone in a trailer home. He plowed through all his savings to keep the policy alive. When funds ran out, he called my brother and I for help. First time that man asked for help from us. He went without heat, without phone, without gas for his truck....but never missed an insurance payment.

We discovered the premium was going to jump to $1200/mo in a couple years. There was just no way my brother and I could help pay for the policy at the time. We had our own financial mess on our hands.

In desperation, he looked for a Final Expense product that would pay at lease enough to cover cremation. Coverage wasn't the best since he was still smoking and on O2 full time. My brother and I had to pitch in each month to help get enough coverage for him.

All those years of paying money to the term insurance company resulted in no payout. It was obvious that he wanted my brother and I to have that insurance policy after going months without heat and phone, etc.

He was a proud man. Didn't ask for, or want help, at any time. He would always say "My problems are MY problems. I am NOT going to make them yours or anyone else's!" He stuck with that his whole life really. The first time he broke free from that rule is when he called asking for help with his life insurance payment.

I cannot begin to imagine the sacrifice he made trying to keep the policy alive towards the end. Breaks my heart. It was because of him, that I now focus on final expense sales. I was in retail operations management before.

It just seems obvious that people were falling pray to the BTID approach. Many of the baby boomers fell for it and most lived pay check to pay check without saving a dime. Many also fell pray to universal life in the 80's that are now imploding.

It's no wonder that the average Joe has doubt over insurance agents. In their mind, all we've done is screwed them or somebody in their family. Their mom/dad may have died without the coverage they thought they had.

If we don't focus on doing what's right for the client and help them make the best decision possible to ensure a payout upon death, agents are going to effectively push all future sales through internet or phone orders.

 

[Gooner]

My Dad. Had a 250k term insurance policy he was paying into for over 20years. By the time he was 60, he became disabled with Emphysema, on oxygen full time. He was one of those guys who wouldn't share or open up to others. He also never asked for help. He was paying $850/month for that term policy by the time he was living on a fixed disability income, alone in a trailer home. He plowed through all his savings to keep the policy alive. When funds ran out, he called my brother and I for help. First time that man asked for help from us. He went without heat, without phone, without gas for his truck....but never missed an insurance payment. We discovered the premium was going to jump to $1200/mo in a couple years. There was just no way my brother and I could help pay for the policy at the time. We had our own financial mess on our hands. In desperation, he looked for a Final Expense product that would pay at lease enough to cover cremation. Coverage wasn't the best since he was still smoking and on O2 full time. My brother and I had to pitch in each month to help get enough coverage for him. All those years of paying money to the term insurance company resulted in no payout. It was obvious that he wanted my brother and I to have that insurance policy after going months without heat and phone, etc. He was a proud man. Didn't ask for, or want help, at any time. He would always say "My problems are MY problems. I am NOT going to make them yours or anyone else's!" He stuck with that his whole life really. The first time he broke free from that rule is when he called asking for help with his life insurance payment. I cannot begin to imagine the sacrifice he made trying to keep the policy alive towards the end. Breaks my heart. It was because of him, that I now focus on final expense sales. I was in retail operations management before. It just seems obvious that people were falling pray to the BTID approach. Many of the baby boomers fell for it and most lived pay check to pay check without saving a dime. Many also fell pray to universal life in the 80's that are now imploding. It's no wonder that the average Joe has doubt over insurance agents. In their mind, all we've done is screwed them or somebody in their family. Their mom/dad may have died without the coverage they thought they had. If we don't focus on doing what's right for the client and help them make the best decision possible to ensure a payout upon death, agents are going to effectively push all future sales through internet or phone orders.

So it was the insurance agents fault that he bought the term and didn't invest the difference. Term coverage is just that. I'm sorry your family went through such a hardship, but the term product did exactly what it was supposed to do. It can't be the agents fault that he didn't follow through with the plan.

If anybody wants to take a shot...how much would a $2 million WL product cost for a 36 yo NT...I'd be curious to see what my payment would be? Preferred.

I'm currently paying under $100/month for my 20 yr term.

 

[Rearden]

Just make the damn sale today - something is better than nothing.

 

[Big Stick]

So it was the insurance agents fault that he bought the term and didn't invest the difference. Term coverage is just that. I'm sorry your family went through such a hardship, but the term product did exactly what it was supposed to do. It can't be the agents fault that he didn't follow through with the plan. If anybody wants to take a shot...how much would a $2 million WL product cost for a 36 yo NT...I'd be curious to see what my payment would be? Preferred. I'm currently paying under $100/month for my 20 yr term.

I should clarify....the agent that sold him was a friend of the family. In sure it wasn't in his mind to screw my dad. You are right, my dad did not do what he was supposed to do. He did have cash saved, but lost much of it to capital gains taxes upon the sale of his business, divorce, and health issues. Life happens.

The unfortunate part is that surving families do not look at it that way. They just blame it on the insurance companies. Same thing with UL. The client was probably given a choice at the time, and they chose to go for the investment factor. End result is families think life insurance is a bad investment.

 

[rousemark]

So it was the insurance agents fault that he bought the term and didn't invest the difference. Term coverage is just that. I'm sorry your family went through such a hardship, but the term product did exactly what it was supposed to do. It can't be the agents fault that he didn't follow through with the plan.

If anybody wants to take a shot...how much would a $2 million WL product cost for a 36 yo NT...I'd be curious to see what my payment would be? Preferred.

I'm currently paying under $100/month for my 20 yr term.

Non Par Around $1500 per month. Take $1Million Paid up for Life In 20 years. You must not have been an FE agent when you bought it..

 

[Gooner]

Non Par Around $1500 per month. Take $1Million Paid up for Life In 20 years. You must not have been an FE agent when you bought it..

Or I could actually invest the difference and have $800-900k in a retirement fund in the same 20 years...using 7% interest...which is far below what I average.

 

[WinoBlues]

I have been in business long enough to have clients that are 20+ years into their policies. I definitely get calls from people that retire with paid for homes and or nice pensions and assets. However, I get a lot more that are having to buy less coverage than they need or want at much higher premiums than they want or can afford.

Life happens.

 

[somarco]

Projections based on averages and assumptions are nice. However, percentage of people who actually follow through with BTID are rare.

That being said, there are a lot that buy some form of permanent when young then either borrow to the hilt or cash it in only to later realize they should have kept it and left it alone.

Many do the same with their house.

Buy with little or no money down then constantly use cash out refi to finance their lifestyle.

We are a nation of spenders, not savers.

That includes DC.