NBC News – Investing In Life Insurance
November 19, 2009 by
Filed under life insurance
Investing in life insurance can be an important asset in your investment portfolio.
Helping you find the best prices and quality insurance
November 19, 2009 by
Filed under life insurance
Investing in life insurance can be an important asset in your investment portfolio.
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The only ones that think it is fair are WL agents. The cash value belongs to the company, not the client. If the client borrowed at no interest then direct recognition makes sense. But the client is borrowing at what 6 to 8%.
Now we are getting somewhere. Even though you won’t/can’t admit WL features suck. A person can get a better loan on the cash value from the bank than the actual insurance company that is holding the CV.
What I don’t understand is that, if this term policy is about to expirein 3 months, how can this client convert to permanent? The conversion period would of expired. That is strike 3 IOBK. You are out. You better learn your products.
13 Reasons why Primerica is Sub Par
Reason 3: The few LI products that Primerica offers are not particularly cheap. If you check on-line web pages that compare Life Insurance (winquote . net), you’ll find there are many cheaper options for most product comparisons.
Yes, I think it’s fair. The flexibility of the repayment terms of the loan, in my opinion, is worth the cost. The repayment of the loan could actually boost the cash value and death benefit of the policy. However, if the policyholder wanted a loan, he could easily assign his cash value to a bank and get a loan from there. It would be a secure loan, so rates would be low, and there would be no reduction in dividends. Payment terms would be less flexible though. Direct rec crisis avoided.
No one was wrapped up in the whose money it really is… The point was why does the client get a lower dividend interest credit when there is a loan against the cash values? The cash value belongs to the company right? The client has to pay interest on the loan and is penalized dividend wise. Do you think it is fair to the client who takes out a loan against the cash value?
(cont) without underwriting and that’s a big deal. If you don’t think it is, then talk to the spouse of my client whose husband has cancer with only 2 years to live but only has term insurance that will expire in 3 months but because of her convertibility she can convert 125% of her term into WL w/out underwriting. So for her that’s an additional $500k of insurance with no questions asked. Can PFS provide that to its clients?
OK…so lets get wrapped around the axle about whose money it really is but if I paid for term insurance for 35 years and don’t die during that time…who keeps the premiums in that scenario? What happens when the client realizes that he wants to keep insurance all the way to his death? Oh, now he needs permanent insurance and either 1.) can’t get it because of medical conditions or 2.) can’t afford it because he’s 35 years older. With our term, at least he could convert it without underwriting.
(cont) in that it will increase the cash value and death benefit upon the repayment of the loan. Or, dividends can be applied to repay the loan of the loaned policy. In many cases, the dividend can completely pay the loan back over time. Since dividends aren’t taxed in this scenario, the policy owner is able to pay back a loan with pre-tax dollars. That’s a good deal.
The fact is, I can access cash values to my policies by loans, dividend withdrawal, and by surrendering the policy for cash. You can get all twisted up about who the cash value belongs to all you want, but when I want a check for my cash value, the check is made out to ME. Practically speaking, the money is mine.
I didn’t say it benefits the person who takes the loan. I said it was fair in that it rewards the non loaned policy with a higher dividend. The loaned policy still benefits…
Wait, wait, wait. Life insurance strictly dictates that all paid premiums belongs to the company. Cash values belongs to the company. So if the policyholder borrows against the cash value which is not his, how does that benefit him when he has to take a lower dividend rate? You dam right it is another way among many for the company to make money.
13 Reasons why Primerica is Sub Par
Reason 2: The few LI products that PFS offers have little depth. The pretty much only offer level term. There are a number of other types of insurance that are often better fits than level term.
i got mega on the ropes he post earlier some bs and i caught him in a huge lie lol
It’s fair to the client who doesn’t max out the policy with loans. But the client who took a loan, pd the interest, and paid back the loan will ultimately have a higher cash value and death benefit than the non-loaned policy in some interest rate environments. He will have paid some interest for it, but he doesn’t lose all of it. I’ll give you this, direct rec is another way for ins companies to make more money, but if I’m a mutual policyholder, I’m ok with that.
banterking,
What does this sound like? “They buy from us because they get value. It is like buying a Mercedes vs. a Honda”.
In reallity it is more like everyone else charges $100-$120. But a select few charges $180 to $220 and promises a rebate of $50 but you have to jump through hoops to get the rebate.
banterking,
Do you think that the client knows about this? No, cause agents like IOBK doesn’t even know about this.
inswiz it is very fair…..to the insurance companies however , they could care less about the families.
dividends lol !!!!
When the client takes out the loan aren’t they being charged interest? Now I also can’t get the max. dividend?
Agents/companies promote how you can accumulate cash in WL and the benefit of dividends. The instant I start to taking out loans, I am penalized with with a lower dividend. Tell me how is that fair?
direct rec takes into account policy loans when determining the dividend paid to the policyholder. It’s “good” becasue it’s fair. Dividends continue to be paid to policies with loans, but higher dividends are paid to policies with no loans.
Tell us how being direct recogniton works, and how it is good.
how bout you stop being my bitch, and answer a simple question? EXPERT MY ASS!! you are my little toe puppet!!!!
i thought the expert wodog was going to answer with his stupid 13 reasons . i guess we have to wait for him to post how waiver of premium works.
I’m still waiting on banter (or someone) to explain to me how PFS’s waiver of premium works, exactly. Please explain it to me as if I were your prospect. (I assume you explain that to them, anyway)
13 Reasons why Primerica is Sub Par.
Reason 1: PFS agents are captive, meaning they can’t search around for products from other companies. There are thousands of LI products on the market. PFS offers less than 10.
Banter, I am glad you asked about “why I hate pfs so much”. This, by the way, was the only thing I could make out from your jumble of words below. I don’t hate PFS, I just think they are sub par. Most of their clients would be better off being serviced by other companies.
In order to illustrate this I have created a series called “13 Reasons why Primerica is Sub Par”. I will release one reason per day for the next 2 weeks. I hope you enjoy it and learn from it.