Comments on: NBC News – Investing In Life Insurance

By: wirehead14

wirehead14 — Tue, 01 Dec 2009 03:03:49 +0000

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.

By: wodendog

wodendog — Tue, 01 Dec 2009 02:53:31 +0000

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.

By: inswiz

inswiz — Tue, 01 Dec 2009 02:34:43 +0000

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.

By: inswiz

inswiz — Tue, 01 Dec 2009 02:11:55 +0000

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.

By: wirehead14

wirehead14 — Tue, 01 Dec 2009 01:27:01 +0000

I’d argue that the loan from the insurance company has certain advantages, as many take out loans to start businesses or in times of financial distress. This makes the flexibility of the ins co. loan more attractive. On the other hand, the bank loan might be more beneficial to someone with no cash flow worries. Regardless, a WL policy is a valuable piece of property that can give the owner multiple options. It’s certainly a better than borrowing on margin or buying a CD for collateral.

By: wirehead14

wirehead14 — Tue, 01 Dec 2009 01:10:54 +0000

As far as the “cash value belongs to the company” soundbite, that may work in convincing the lower middle class that WL is bad. However, many affluent people control assets owned by trusts and other entities they’ve set up. They understand that controlling an asset without owning it offers protection and the benefits of ownership. The policyowner is always in control of the cash value. The company is contractually bound to pay the cash value to the owner if he requests it.

By: wirehead14

wirehead14 — Tue, 01 Dec 2009 00:16:18 +0000

I do, however, see your point and agree that clients should know the impact of policy loans on their policy’s performance. I also agree that many agents fall short of offering this kind of insight.

I’ll say this again: I’m not advocating WL for every person everywhere in every situation. I’m saying there are many situations where it’s a good thing for the consumer. An assumption that WL is 100% wrong 100% of the time is illogical and much much harder to defend reasonably.

By: wodendog

wodendog — Mon, 30 Nov 2009 23:17:59 +0000

13 Reasons why Primerica is Sub Par

Reason 4: Primericans generally have no idea how insurance works at other companies. Even term products from other companies are a mystery to them. Having a primerican explain how Whole Life works is like having a communist explain capitalism (everything is biased and wrong). Primericans are grossly misinformed.

By: IOWNBANTERKING1

IOWNBANTERKING1 — Mon, 30 Nov 2009 22:46:53 +0000

The convertibility will expire. I’m sorry, I guess I’ll start having to dumb-down my lingo…I thought I was talking to people who are in the biz and can keep up with the conversation. Obviously if his insurance is about to actually expire, he wouldn’t be able to convert it. He has the insurance until age 80 but can only convert until age 60 (b/c he bought it between age 18-45). I’ll dumb it down for you as I go, inswiz.

By: inswiz

inswiz — Mon, 30 Nov 2009 22:03:16 +0000

Keep dumbing it down for me this is a great product.

This person is almost 60 and you are just now doing the conversion. IF all of a sudden they can afford all this WL, why did you wait to the last minute to do the conversion? Let’s see $2.5 million of WL for a 59 year old cost about what $11k a month? They were probably paying what $400 to $500 a month for term to 80. Yeah I believe you IOBK.