- 680
I guess what I don't get then is how you explain that to someone who buys a low db policy and live past the point where the premiums overcome the db. They've obviously lost the bet, but damn, I can't imagine trying to explain that to someone...
How on earth do you FE guys do that??
I tell them that each month part of their premium goes towards the actual cost of insuring them, and the rest goes into cash value.
Each month the cost of insurance goes up a small fraction, so a little less goes in the cash value.
This is the only way to keep your premiums the same for life.
You can access your cash value at any time, or convert it to a reduced paid up policy.
You never loose any money, it's either in your cash value, or was used to insure you for that time period.
If they still balk at that and say something like 'I could put that money in the bank and save it up in 10 years'
I just ask them why they didn't start that plan 10 years ago?
Whatever their answer, I put it back on them 'well thats exactly why you wont start doing that now...what has changed in the past 10 or 5 or 1 years? Nothing...and so there's nothing that will change after today. At least with a policy, if you die next month you're fully covered, and you can still take your cash value and start that savings plan whenever you like.
If they still balk at that, I do the 10 or 5 or 1 year statement again, except then I say 'if you don't get this policy now, with a broker showing you the best rates, and you've not saved a dime for your funeral, just as I'm standing here in the flesh before you, you will die with no savings or policy...so let me ask you, which family member is going to pay that bill, and shouldn't we go ahead and give them a courtesy call to at least give them a chance to start preparing? '
If that doesn't do it, at least I'll be early for my next appt, cause I'm packing up at that point...waste of time...