Do You Add ADB

[KRobby]

First, your comment doesn't even make sense.

To be clear, I'm not assuming anything. This whole discussion centers around information disclosure. The guy in this thread says he offers ADR as an additional "value". However, he does not tell these clients how truly unlikely it is they will collect on this value. If he began doing this, almost nobody would buy the ADR once they learn the truth.

Whether you are selling UL, WL, term, ADR or whatever, it's our job to inform our clients what we know about the insurance we are proposing to sell them. There are pros and cons to all types of life insurance. The client needs to know this risks & rewards, so they have all the facts to assess whether or not what we are recommending is consistent with their objectives.

This is especially true when we know that a potential contract is like buying a lotto ticket hoping to win $25,000 (ADR).

You can't claim "the premium reflects the risk" and use that as logic to justify why we don't need to inform our clients the improbability of ADR.

Again, why would you assume he (or anyone) is misrepresenting?

If you truly think it's unethical to add the rider, write your insurance commissioner and give him a detailed explanation as to how you arrived to this conclusion. I'm sure he could use a good belly laugh.

 

[rousemark]

Zig is awesome, and upselling is great if the product you are selling has actual value.

When you decide to push something onto a client you know has virtually no value at all and you choose not to disclose pertinent information, that's extremely low. It's just like Lincoln Heritage agents who preach the FCGS value as a reason why their clients should spend 30%-100% more on their final expense insurance.

You are selling bottled air. Would zig sell bottled air? I very much doubt it. From his books and CDs, he strikes me as a man of honor.

I'm done with this conversation. If you or anyone else wants to push a product that you know has nearly 0 chance of ever paying off that's your choice. I prefer to be honest with everyone especially my clients.

Of course this is a younger client but I have one lady that you would be hard pressed telling her that her husband bought bottled air.. They were in their late 20s and had 3 small children. I tried to sell them life insurance but the husband would not budge. Finally as I prepared to leave I asked him if he died in the next few years what would be the cause. He agreed it would be an accident. I told him that for $15.00 pr month he could get $180,000 payable at the rate of $1500.00 per month for ten years... He bought it and was killed in a car accident a couple of years later. The young lady gives me a hug every time she sees me.

 

[nfl72]

I have not read the entire thread but knowing what I know about the typical FE buyer, ie; more than likely they are lower income, rent their home and live in a less desirable neighborhood. They are more likely to be around guns and drugs than the average American citizen. I would also assume they are around accidental death way more than we are.

Back when my go to companies offered AD I sold it most of the time, because over time it adds up. When I was an F&I manager in the car business my computer had a penny rollup feature. Every time we quoted a payment it rolled the payment up to a payment ending in 99 cents. It might not sound like much but it adds up to several hundred dollars after just a few months. It was free money.

Its really no difference than selling AD. If they are willing to spend $67.00 per month on a FE policy they more than likely won't object to paying a few more dollars for an added benefit that is very easy to sell and takes just a few seconds of your time.