Is this Impossible?

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...
 
A couple of 70 year old friends made their own Life Insurance Company.

Each wanted $15,000 for final expenses and was willing to pay 1000 a year, so between them they eventually paid 30,000 and covered their expenses.

Joe lived 1 year and paid 1000 dollars! Bill lived 29 years and paid 29,000 dollars! Joe was the lucky one, hmmmm? Would Bill trade?

Life insurance companies are matchmakers.They match people up so they can pay for their final expenses.

Luckily for us they collect our money and invest it, and add these profits to our premiums, making it a lot quicker for us too!
 
Can we agree that they are going to have to pay for a funeral whether they have life insurance or not? If so, then the life insurance doesn't cost them anything more than they where going to pay anyway until year 20. If she passed away today will she have the ability stroke a check for $10,000.00? They can, however, afford $60/month. Side note: If they have $0 in their bank account today, what makes you think that they will suddenly COMPLETELY REVERSE the way they've handled money for 60 years? The auto bank draft is the only way that most of them will make the life insurance OR saving the money work. Although this RARELY comes up, if you can think of the policy as an accelerated savings plan, it makes sense. You can deposit $60 per month in a bank account or a life insurance account. If you die in the next 10 years with a bank account you will get half of what the life insurance will pay. 10 years seems optimistic for the OP's client.
 
Good points, all! Still not a niche I'd like to work in much, but you guys made some great points.

Since the heartattack and stents have been within the last year, it looks like GI is the only way to go. She originally wanted 20-30k, but that was out of her price range. Fixed income and all. So we're going with a modified WL with Gerber for 10k at 50/month. 110% of premium in the first two years, 100% db in 3+.

Thanks again...most excellent advice. You've opened my eyes quite a bit... :)
 
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