What is the psychology behind final expense??

[somarco]

It is very well known in the business that AL Williams and then primerica gave term insurance an abolutely horrible name

I started in this business in 1973; full time in 1975.

Art Williams did not give term insurance a bad name, He gave the carriers who insisted on selling only whole life a bad name. Along the way he also came up with this goofy BTID philosophy which has never worked.

Art's band of merry men sold over-priced 10 yr term thru folks like Millico and an even crappier annuity as a "side fund".

Frankly, the industry needed to be turned on their ear. We had folks like Marshall Wolper and Tom Wolff doing CNA on folks, telling them they needed $350,000 of life insurance to fulfill their financial goals. However there was a problem. The client could only afford $50,000 right now so that is what he was sold.

The idea was, the agent would come back next year after he got a raise and sell him another $50,000 and so forth until he finally owned $350,000 of whole life.

But what if he died or became uninsurable in the interim?

Too bad. At least his family had something and something was better than nothing they had before the agent walked in the door.

Please tell me you don't believe this BS.

I generally know who to suggest tem to- and who may toss me out on the street -if I even bring up term.

If you are working with uneducated, poor people then I can understand. Those are the folks who will buy whole life even if it is inadequate.

They just won't buy into it

They wont buy it . . . or you wont sell it.

Which is it?

 

[HomeService]

dang, somarco, I thought you knew what market I was in, I'm sorry I did not make it clear. My mistake.
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They wont buy it . . . or you wont sell it.

Which is it?

I said many times I sell term and will sell term and have sold term. In most markets.

 

[bobson]

I'm certainly no financial expert. I'm not a planner. I'm not a CFP. But it seems to me our country is in terrible shape financially. Those people that bought term and actually did invest the difference are quickly learning maybe that isn't the right strategy either. Consumer debt is sky rocketing. Mortgages are being foreclosed on. I know plenty of people that don't think they'll be able to retire now when they planned on it.

But those in control of the stock market while worried a little bit still charge their annul fees.

 

[360]

Oh, and 20 years ago, term was higher in premium. It has come down since then. So yes, now a young mom can buy way more life with term for the $$$. But some of these folks are really traditional and sentimental or whatever, and they just won't have it. The term that is. They just won't buy into it, even if it's a way better deal, now. I can't help it if people are stuck in another decade ...{ heck, I'm stuck in the 1980's} ... but I can recognize it and roll with it.

Got my license in 1991

It's not traditional or sentimental it is plain and simple...SAD. From what I gather from your posts, it's in the hood...and I get that. Trying to sell term to that young mom would be a tough job. I guess some coverage is better than no coverage. My point was if you actually beleived it was what is best for her or if you sell it just because it's all she'll buy?

As far as BTID, it's only the concept preached by nearly every single financial planner (that doesn't sell UL/WL). If we took of poll of agents on this forum I would venture a guess that 95% are buying term and investing the difference. I know, I know, there will be a few kool-aid drinkers socking all their money into UL/WL products but we're not taking about the select few, we're talking about what's right for the majority of folks. So what then, it's good enough for us but not for our clients?

 

[HomeService]

yep, win, I sell in the hood sometimes, but I sell elsewhere as well. I spread myself around a bit. { In more ways than one when I gain weight, ha ha } But anyhow, just trying to let people know about some philosophies and psychologies. I'm not really hammering folks for what they like to sell, to each his own. I have opinions, some are a little strong, some are dated. I am trying like heck to learn the "ways of the information age"....oh well, I wish everyone success in what they are trying to accomplish.

As far as what's good enough for me verses the rest of the folks: I own an older adjustable premium flexible whole life!! It's old, it was AGLA's way of getting around calling it a UL.

 

[somarco]

The only real question is . . . are you doing right by your client or are you short-changing their beneficiaries by taking the easy road and simply giving them what they ask for?

 

[HomeService]

I personally think I'm doing right. I can sleep at night.

 

[Guest]

I believe if you fact find by asking questions of the prospect you will find the pain. Then just offer them a good solution for that pain. It may not be perfect but what is?

 

[retread]

As far as BTID goes, I'm going to suggest investing the difference in what? The Stock Market? In selling FE, we are only talking about a short window. The only credible product for a senior is W/L.

 

[Guest]

Okay, I see some buzz on final expense ... what is the angle for selling this? The small face value and the high premiums ... I'm trying to wrap my mind around it and if it's really in demand? I'm interested in selling it .. but need some more information on how to sell it ... what is a good company to be appointed with?

I sell term and whole life but this was the original post so I will write about this only. Final expense insurance, especially in the senior market is undoubtedly in high demand. It is only going to get higher as life expectancy goes up.

There are many good companies that offer it. Just do a search in this section and you will see many offers and companies to go with it.

Many of these clients will have moderate to severe health issues. Some will only qualify for Guaranteed Issue policies which are extremely high in price and limited in coverage allowed. For those that do not qualify at all you may can help by offering annuities they can pay for monthly or in a single payment.

If you feel comfortable with older people and convey to them your desire to solve their problem in this area you will do fine and make a good living. Hard work will go a long way in this arena.

Personally, this age clientele is my favorite. They may be slower to trust you (many have been burned before) but when they do, it is very gratifying to work with them and give them some peace of mind about the future. My father died at age 82 with no life inurance so I have some personal experience with not having it.