Why Term over Final Expense?

[WinoBlues]

Regular term.

What happens at 81 is that if the insured has survived to that age, then his or her Social Security payment has been made until that age. This means that the event being insured against, namely the severe drop in Social Security income when one spouse dies, has not happened. This means that the insurance has served its purpose.

BTW Steve, I was not arguing with you. Mostly just replying. I agree that it is a good concept. Income replacement and Transition income needs is old School needs selling.

 

[steve heller]

You miss my point. She is still going to suffer a loss in income if he dies at age 82 after the term has expired.

According to your theory, no one should ever buy term, because if they survive the term, then they won't get a payout.

Do you see the flaw in your logic yet?

 

[VolAgent]

According to your theory, no one should ever buy term, because if they survive the term, then they won't get a payout.

Do you see the flaw in your logic yet?

Not at all, you assumed I was saying something I wasn't.

Term is for temporary needs, perm is for permanent needs. It is why it is named the way it is. If you doubt this, see Wino's real life case. Yes, he sold them term and fortunately he documented everything. Now they have outlived the term policy and either have to go without or buy another policy being 10 years older and often in poorer health. Knowing him, I bet he clearly told them it was only for 10 years, but now they have selective memory.

There is nothing wrong with Pension Max, which this is. But you better be prepared for the inevitable case where someone outlives the term.

Show them both a GUL and a term policy, and then make them sign off that THEY chose the term policy.

 

[steve heller]

BTW Steve, I was not arguing with you. Mostly just replying. I agree that it is a good concept. Income replacement and Transition income needs is old School needs selling.

Thanks, I appreciate your explanation.

Of course this is a variation of an old school approach.

But the differences are:

1. I don't know anyone who is selling term for the specific purpose of replacing Social Security income in the event of relatively early death of one spouse.

2. I have developed a program that calculates and illustrates the benefit of this approach, suitable for any life agent's use. That program is a free download with no obligation to buy the companion book, although of course I would appreciate that. :-)

 

[steve heller]

Not at all, you assumed I was saying something I wasn't.

Term is for temporary needs, perm is for permanent needs. It is why it is named the way it is. If you doubt this, see Wino's real life case. Yes, he sold them term and fortunately he documented everything. Now they have outlived the term policy and either have to go without or buy another policy being 10 years older and often in poorer health. Knowing him, I bet he clearly told them it was only for 10 years, but now they have selective memory.

There is nothing wrong with Pension Max, which this is. But you better be prepared for the inevitable case where someone outlives the term.

Show them both a GUL and a term policy, and then make them sign off that THEY chose the term policy.

I'm sure some people will outlive the term, and a lot will lapse before the end of the term. Otherwise the insurance company would go broke.

But how is this different from selling 30 year term to a 35 year old? In that case, it is even more unlikely that he will die before the end of the term.

 

[VolAgent]

I'm sure some people will outlive the term, and a lot will lapse before the end of the term. Otherwise the insurance company would go broke.

But how is this different from selling 30 year term to a 35 year old? In that case, it is even more unlikely that he will die before the end of the term.

When I sell term, I sell it to replace a temporary need. Mortgage, income until kids are grown, retirement, etc. Now, many people have a way of turning a temporary need into a permanent need, but I can only do so much. That is the hole in what I do in selling term insurance, but I know its there, so I can deal with it when it happens.

Also, you really seem to be missing the big picture here. Instead of getting combative, you should be thanking Wino and myself. You can adjust your software and book to address this very issue. Help agents handle it when they encounter it and perhaps even get a GUL sale instead of a term sale, or be able to sell a new policy when the term runs out because they weren't blindsided.

 

[steve heller]

When I sell term, I sell it to replace a temporary need. Mortgage, income until kids are grown, retirement, etc. Now, many people have a way of turning a temporary need into a permanent need, but I can only do so much. That is the hole in what I do in selling term insurance, but I know its there, so I can deal with it when it happens.

Also, you really seem to be missing the big picture here. Instead of getting combative, you should be thanking Wino and myself. You can adjust your software and book to address this very issue. Help agents handle it when they encounter it and perhaps even get a GUL sale instead of a term sale, or be able to sell a new policy when the term runs out because they weren't blindsided.

Yes, sorry, you're right. Any feedback could be very useful for improving what I have developed.

My book is coming out in a couple of weeks and is already in final form, so I can't do much about that. Maybe for the second edition...

But I can adapt the software whenever and as much as I like. I'll see if I can figure out a way to include this.

Would you (or Wino, for that matter) be interested in seeing what I have now and commenting on it in more detail? I'd be happy to send either or both of you a copy of the PDF of the book as well as information on trying out the software.

 

[VolAgent]

I would be glad to, for what it is worth. You really should try to get Wino to look at it, he works this market much more than I do.

 

[steve heller]

BTW Steve, I was not arguing with you. Mostly just replying. I agree that it is a good concept. Income replacement and Transition income needs is old School needs selling.

Would you be interested in looking at my book and software? VolAgent suggested that you might be a good source for feedback on its viability, how it could be improved, and so on.

 

[steve heller]

I would be glad to, for what it is worth. You really should try to get Wino to look at it, he works this market much more than I do.

Is there a private messaging feature on this board? I'd like to send you some information but don't want it to clog up this thread with (any more) irrelevancies.