Justifying a Whole Life Policy
- Thread starter stci
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- whole life
Tell the boss to pay for it then...
Seriously, what would your client do with the difference in premium between the term and WL? If your answer involves investing in anything but CDs or Treasuries, then why are you using the guaranteed column? What is the rest of their financial situation like?
Selling WL doesn't necessarily involve being a "sly salesman" (although it can, just like selling anything else) but whether it is a good plan will have a lot to do with the rest of his financial needs/picture.
You are selling insurance coverage not an investment.. He is buying a lifetime of coverage for a guaranteed level premium. Your "morals" are not providing that for him.. His boss probably fell prey to the BTID frame of mind and now sees he made a mistake.
Since you are so conflicted about it, pass it on to a "sly' salesman that is open minded enough to consider all options for the client. After all I am sure you wouldn't want to violate your morals for a 4K commission.
I also wonder about a 4K premium on a 27 year old.. He would have to be an exceptional young man to make that type of commitment and carry through with it.
- 2,758
If it was me (and some will disagree), I would sell him a 20 year pay or a paid up @65 for his inevitable final expense. And the 30 year term for his financial obligations. The term would depend on how much his income would be missed. If he is only supporting himself then he may not need the term, unless he wants to leave his parents some money.
On a personal note, it's good to see someone with morals and not just looking out for themselves. My hat (if I wore one) would be off to you.
On a personal note, it's good to see someone with morals and not just looking out for themselves. My hat (if I wore one) would be off to you.
- 4,132
"I dont know if it is my morals or whatever "
I think it's more a whatever aspect and lack of knowledge than anything else. "I only use the guaranteed" What crap. What absolute crap. Please point out a major carrier who has failed to pay a dividend? Most have histories of over a century of paying a dividend every damn year. But heck, lets throw that out and not count it for s hits and giggles?
Maybe understand if it gets to that point where the major carriers aren't paying a dividend, most term carriers will be GONE because we will be in such a dire financial straights that this country would be in collapse. Remember these companies paid dividends during the depression.
Usually I find a direct relationship between an agents opinion on whole life and if they have the product in their offerings. It is very easy to dislike something you aren't licensed to sell.
This 27 year old gets to lock his cost in for the rest of his life. He can let the dividends buy paid up additions which grow both his cash values and death benefit or he could use those dividends to reduce his premiums... term in reverse.
He gets control and final say over his policy. If you're going to only go with guarantees, look at a term table and sell the guaranteed costs inside a term policy. Think people would buy term if you sold them the guaranteed premium after the level period ends? C'mon man....
I think it's more a whatever aspect and lack of knowledge than anything else. "I only use the guaranteed" What crap. What absolute crap. Please point out a major carrier who has failed to pay a dividend? Most have histories of over a century of paying a dividend every damn year. But heck, lets throw that out and not count it for s hits and giggles?
Maybe understand if it gets to that point where the major carriers aren't paying a dividend, most term carriers will be GONE because we will be in such a dire financial straights that this country would be in collapse. Remember these companies paid dividends during the depression.
Usually I find a direct relationship between an agents opinion on whole life and if they have the product in their offerings. It is very easy to dislike something you aren't licensed to sell.
This 27 year old gets to lock his cost in for the rest of his life. He can let the dividends buy paid up additions which grow both his cash values and death benefit or he could use those dividends to reduce his premiums... term in reverse.
He gets control and final say over his policy. If you're going to only go with guarantees, look at a term table and sell the guaranteed costs inside a term policy. Think people would buy term if you sold them the guaranteed premium after the level period ends? C'mon man....
- 2,758
Yes, a par plan is a better option than a run of the mill WL. If it's a good one then it can also perform like an early paid up plan of WL. (ie: my aforementioned 20YP and PU@65).
Can anybody tell me on what day did the industry memo go out that said being uninformed about how products work somehow places one on a moral pedestal?
Seriously, if you want to take the moral high ground, learn the products and the situations they fit for and quit using "morals" as an excuse for your ignorance.
And while you're at it, read Covey's 7 Habits. One of the habits he discusses is "Think Win-Win". If you truly live by the philosophy of "win-win or no deal" (meaning you don't win at your client's expense but rather you both win - or walk away), you won't need to apologize for making a living by helping clients advance financially.
Seriously, if you want to take the moral high ground, learn the products and the situations they fit for and quit using "morals" as an excuse for your ignorance.
And while you're at it, read Covey's 7 Habits. One of the habits he discusses is "Think Win-Win". If you truly live by the philosophy of "win-win or no deal" (meaning you don't win at your client's expense but rather you both win - or walk away), you won't need to apologize for making a living by helping clients advance financially.
- 15,041
I'm really curious about this product as well.
What product has a 4k annual premium for a 27 year old and only shows 3k in growth above paid premiums in 20 years?
What product has a 4k annual premium for a 27 year old and only shows 3k in growth above paid premiums in 20 years?
what ever happened to showing a combined smaller WL policy with a Term rider or separate 30yr Term
At that age, a 10:1 ratio is common from Term:WL/IUL......Try That if you cannot stomach selling what a client wants.
At that age, a 10:1 ratio is common from Term:WL/IUL......Try That if you cannot stomach selling what a client wants.
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