Thoughts on WL Product

[MikeyInsurance]

Once again, I'm new to the biz. I just wanted to hear some thoughts on whole life. I get that for some people WL is a great product but for a majority it's not. The company I work for pushes straight whole life. No matter what the prospects needs are -- they want us to sell them whole life. They don't even want us to offer them term because it's not nearly as pricy premium wise. Any inputs are appreciated... Sarcastic or not!

 

[DHK]

Before you can sell whole life, you have to be sold yourself. Right now, based on your post, I can tell... you aren't sold.

However, I'm also "not sold" on non-participating whole life... which is probably what you've got with AIL.

The only way I could rationalize a non-par product... was that it could be a substitute for someone's group life insurance with a level premium. Also good for older people who may not be able to qualify for other products (Final Expense sales).

Term is not appropriate for a final expense solution. Check out the FE forum for more details on that.

If you want to REALLY sell whole life, you need to be with a company that has a great whole life product, such as NYL, MassMutual, Ohio National, etc.

 

[WinoBlues]

Once again, I'm new to the biz. I just wanted to hear some thoughts on whole life. I get that for some people WL is a great product but for a majority it's not. The company I work for pushes straight whole life. No matter what the prospects needs are -- they want us to sell them whole life. They don't even want us to offer them term because it's not nearly as pricy premium wise. Any inputs are appreciated... Sarcastic or not!

A $1,000.00 AP of Whole Life cost the same as $1,000.00 AP of Term and a $1,000.00 AP of a Blended plan.

Find the problem(s), build a solution up to their budget for the solution to their problem(s).

 

[DHK]

The job of the ethical life insurance agent is to:

1) Determine the need (face amount).

2) Determine the best way to pay for it.


Here's a tip: If you want to sell permanent life insurance... STOP SELLING INSURANCE. Yes, you heard me. Stop selling "insurance" and start selling and emphasizing benefits.

The word "insurance" is a word that attracts people who want to benefit from that insurance. The poor risks would gravitate to it because they want what they can't have.

However, the good risks see insurance as a "need"... and see the only way to differentiate is by price.

No wonder agents have a hard time getting going in this career! Bad risks will waste time... and good risks don't want to pay much!

If you had a client that needed (and could qualify for) $500,000 in coverage, they could pay $500/year or $10,000/year... which would they choose? They'd probably pick the $500/year... unless they saw the benefit of paying an additional $9,500/year.


Even Ben Feldman said that he doesn't sell insurance. He sold packages of money. "I sell money for pennies on the dollar for future delivery."

Until you can see the benefits for paying more for permanent life insurance... you won't sell much of it.

 

[MikeyInsurance]

I get that but when I look at the rates on a lot of the whole life policies that the company offers the policy holder will be paying more into the policy than the actual worth. Why not just start an investment account? I guess the only logical answer would be an unexpected death? Let's make this easier.. In what situation would you say a person absolutely needs a whole life policy?

 

[DHK]

Whole life is not a need product. Whole life is a WANT product.

Read Larry Tew's PDF file about "Life Insurance - The Whole Story" as a good intro to the subject:
http://www.insurance-forums.net/for...s-investment-account-t69919-2.html#post938528

----------

I get that but when I look at the rates on a lot of the whole life policies that the company offers the policy holder will be paying more into the policy than the actual worth.

What do you mean by that? I don't understand.

 

[Tothetop]

----------



What do you mean by that? I don't understand.[/quote]

i.e. 30 years of premium may equal more than the death benefit for example. Maybe thats what he meant. If that is you see that more in poor WL products

 

[MikeyInsurance]

---------- What do you mean by that? I don't understand.

i.e. 30 years of premium may equal more than the death benefit for example. Maybe thats what he meant. If that is you see that more in poor WL products[/QUOTE] that's exactly what I meant. The forum wouldn't let me reply to DHK for some reason but yes that's what I meant and I see it in almost every WL policy we sell.

 

[Tothetop]

i.e. 30 years of premium may equal more than the death benefit for example. Maybe thats what he meant. If that is you see that more in poor WL products

that's exactly what I meant. The forum wouldn't let me reply to DHK for some reason but yes that's what I meant and I see it in almost every WL policy we sell.

As stated earlier build a solution based on need not product and go to strong mutuals like NYL and Mass for example and you will really see what a participating whole life can do.

 

[DHK]

i.e. 30 years of premium may equal more than the death benefit for example. Maybe thats what he meant. If that is you see that more in poor WL products

that's exactly what I meant. The forum wouldn't let me reply to DHK for some reason but yes that's what I meant and I see it in almost every WL policy we sell.[/QUOTE]

Your eyes are opening... and your days at your current job are numbered.

Why? Because you're seeing the flaws and inadequacies of your product line.

Same thing happened to me at Combined Insurance. After nearly 6 months, I discovered that there were only 2 products I liked... out of 7.

Either sell a LOT of the other stuff, find a new position, or both. Pressure from management to make unethical product sales... won't go away.