The Complete Idiot's Guide to Buying Insurance and Annuities

Markingriffin · 05-10-2009, 08:04 PM

One time while working with a client, I noticed he had the book "The Complete Idiot's Guide to Buying Insurance and Annuities " in plan view.

Let me tell you that I didn't end up selling him.

I'm going to have to order this book to see what in the world they told him.

I bet who wrote it really knows nothing about Insurance or Annuities.

I've noticed a couple of books on amazon.com. I wonder how many clients read these books.

Amazon.com: The Complete Idiot's Guide to Buying...
And

Amazon.com: Questions and Answers on Life...

What do you think about these kinds of books?

xrac · 05-10-2009, 08:07 PM

Originally Posted by Markingriffin

One time while working with a client, I noticed he had the book "The Complete Idiot's Guide to Buying Insurance and Annuities " in plan view.

Let me tell you that I didn't end up selling him.

I'm going to have to order this book to see what in the world they told him.

I bet who wrote it really knows nothing about Insurance or Annuities.

I've noticed a couple of books on amazon.com. I wonder how many clients read these books.

Amazon.com: The Complete Idiot's Guide to Buying Insurance and Annuities: Brian H.; Breuel, Brian Breuel: Books

And

Amazon.com: Questions and Answers on Life Insurance: The Life Insurance Toolbook: Anthony Steuer: Books

What do you think about these kinds of books?

I bet the book touted term insurance. Most of the books for the general public rehash the same old basic information. They are only good for some very basic understanding.

insuranceexec · 05-10-2009, 10:12 PM

Mark,

Xrac's opinion is spot on. These books are used for giving individuals a VERY brief description of how annuities work and when they should be used.

In my opinion the individual would still be better served by seeking the advice from a competent professional that they, the consumer, trust. Good question.

Y.L. Prinzel · 05-11-2009, 09:21 AM

In my opinion, these books do very little to discuss all the options available for annuities and life insurance policies. Annuities especially--you'd think straight life was it for payout options, and no books discuss annuity DB or the fact that it can be a great investment when not annuitized too.

Then of course, because the agent is going to make a commission on the sale, the consumer assumes they can't be trusted. So you can explain them until you're blue in the face and you are still viewed as a snake oil salesman.

So, what did your client say during your meeting? Anything that can help us understand why he didn't buy?

Markingriffin · 05-11-2009, 09:26 AM

To be honest with you, I think it was a set up. He just wanted to jump on an insurance agent after reading his book.

HE acted like " I've read this book now and I know the truth". He treated me like a used car saleman.

I don't think he even really wanted to buy life insurance. I think he just wanted to test his book out on an agent.
The book was a bunch of crap. The book was outdated also and left a lot of blanks to be filled in. If it was not in the book, then it was not true in his mind.

Norwayguy · 05-11-2009, 09:35 AM

You get the same type of thing with Dave Ramsey listeners. God forbid you mention anything other than term insurance and some of those 12% mutual funds that Dave always talks about...

What I really love is when they tell me during the meeting that I was just convienent to them so they could ask there questions while they wait on the guy Dave recommends gets back to them. (You can bet after they told me this I asked them why they thought I was there personal teacher and doormat and left) The other thing is I've called this guy that Dave recommends and he doesn't meet with clients he offers them 1 quote over the phone and 1 premade mutual fund selection.

insuranceexec · 05-11-2009, 09:44 AM

Originally Posted by Norwayguy

You get the same type of thing with Dave Ramsey listeners. God forbid you mention anything other than term insurance and some of those 12% mutual funds that Dave always talks about...

What I really love is when they tell me during the meeting that I was just convienent to them so they could ask there questions while they wait on the guy Dave recommends gets back to them. (You can bet after they told me this I asked them why they thought I was there personal teacher and doormat and left) The other thing is I've called this guy that Dave recommends and he doesn't meet with clients he offers them 1 quote over the phone and 1 premade mutual fund selection.

Sounds like a stand up guy.............LOL. The media is full of bad advice.

I was watching a news program on CNBC last night, and they were interviewing a SEC attorney. This attorney with all of his question dodging and retort made a point to clarify that a "professional" stockbroker does not visit people in their homes, and to be leery of anyone who does.

BAD ADVICE!

Newby · 05-11-2009, 12:33 PM

I was reading through a Suzi Orman book the other day I bought for a dollar at a library sale.

There was a question and answer section about life insurance and someone asked what CLU stood for. Suzi's answer was that it doesn't mean anything. All life insurance agents must pass the CLU certification before they can sell life insurance.

Norwayguy · 05-11-2009, 01:13 PM

Originally Posted by Newby

I was reading through a Suzi Orman book the other day I bought for a dollar at a library sale.

There was a question and answer section about life insurance and someone asked what CLU stood for. Suzi's answer was that it doesn't mean anything. All life insurance agents must pass the CLU certification before they can sell life insurance.

The problem here is that you waste your time trying to correct this with the client because you haven't written a book.

The only thing that works for me these days is that I tell people I make my living by working with real people on there financial problems, other people make there living selling books. Who would you rather work with.

moonlightandmargaritas · 05-11-2009, 01:20 PM

An interesting thread.

I think the true issue is being missed. The true issue is TRUST.

If you can't establish it or maintain it, move on. Why waste your time?

DJM · 05-11-2009, 01:43 PM

Originally Posted by moonlightandmargaritas

An interesting thread.

I think the true issue is being missed. The true issue is TRUST.

If you can't establish it or maintain it, move on. Why waste your time?

100% agree with this truth.

Charpress · 05-11-2009, 01:54 PM

Suze Orman in "The Road to Wealth":

Page 510:

Q. My financial advisor is recommending that I buy a variable annuity within my retirement account. What should I do?
A. Get yourself another financial advisor, pronto.

Page 513:

Q. How do I know if an index annuity is right for me?
A. If you do not want to take any risks but still want to play the stock market, a good index annuity may be right for you.

Here's my point: If you stay familiar with what the consumer "experts" are saying, you can probably find something positive to quote about whatever you want to sell.

With Suze it is a no-go for variables, but on indexes she says "I have to admit I like the concept..."

pistol_saf · 05-11-2009, 05:41 PM

A few months ago, I bought Insurance for Dummies by Jack Hungelmann who has the CIC and CPCU designations. The book had a few good points. He explained what each designation means and he suggested if you can, buy from a life insurance agent who has the CLU designation. He also mentions how people are underinsured when it comes to risks of disability.

moonlightandmargaritas · 05-11-2009, 06:32 PM

Originally Posted by Charpress

Page 510:Q. My financial advisor is recommending that I buy a variable annuity within my retirement account. What should I do?
A. Get yourself another financial advisor, pronto.

Is there some reason to put "tax-deferred inside of tax-deferred" that holds up to the scrutiny of what's best for the client?

What is it?

briko3 · 05-11-2009, 09:57 PM

In my opinion, not with variable. I can see why a risk averse person would want an indexed annuity in their IRA if they want some market gains without the risk of loss.

dansam59 · 05-11-2009, 10:04 PM

I never understood that argument. While you don't gain any extra tax-deferment, is there any harm in putting a tax-deferred vehicle inside an IRA, 401k, etc? You could argue that expenses are higher for most annuities, but what's the point that I'm missing with this overused logic?

xrac · 05-11-2009, 10:24 PM

"The Complete Idiot's Guide to Buying Insurance and Annuities" is it the book specifically written for the followers of Susie Ormond and Dave Ramsey?????

moonlightandmargaritas · 05-12-2009, 06:50 AM

Originally Posted by dansam59

You could argue that expenses are higher for most annuities

That's what I'm talking about.

insuranceexec · 05-12-2009, 09:20 AM

Originally Posted by dansam59

I never understood that argument. While you don't gain any extra tax-deferment, is there any harm in putting a tax-deferred vehicle inside an IRA, 401k, etc? You could argue that expenses are higher for most annuities, but what's the point that I'm missing with this overused logic?

Expenses are higher compared to what? Most fixed annuities have no fees.

Charpress · 05-12-2009, 10:32 AM

Tax deferral is certainly one advantage of an annuity. But in my experience, most people don't care that much about that aspect.

What matters is guarantees of principal and guarantees as to growth and as to income.

If you want an IRA that will not die before you do, an annuity is the only thing available in this country that can guarantee lifetime income.