Posted: Fri Mar 02, 2007 7:49 am Post subject: Buy Term or WL?
Here is a flow chart I found that is interesting and easy to use. Not saying I agree with everything 100% but it isn't a bad little way of figuring on what to buy.
wow, this is a good source of information rick. thanks for sharing it. this is just right. For those who are willing to buy a life insurance coverage, it is just right to know the needs before jumping into conclusion on what kind of plan to buy. For the part of the insurance agents, they need to qualify these needs in order for them to provide good advice on what kind of insurance do their client needs. Insurance agents should always remember that they are not in the industry only for the purpose of earning money. They are in the insurance industry to provide service to the people who needs financial advice and financial planning. As agents, they should stick with the concept of helping their clients. Agents don't really sell, they just help.
I don't totally agree with this flow chart but for the most part it is correct. I would question the 150 grand income before the trigger to use CV Insurance and replace it partially with the mindset of the client. Some believe in the equity market some do not, IMHO most are leary about getting to far into the market. For those people the long term savings within a WL or UL isn't a bad deal at all. Generally speaking that is about 6-7% growth of ones money which will keep up with most MF's or the general index such as the SP and others over a 20-30 year period.
I see the need of insurance as a curve, you have peaks and valleys of need. I try to figure out how much coverage is the basic amount, the amount they could always use as in life long. Generally speaking I'll suggest around 150-250 grand of W/L or UL than if income replacement or debt coverage is needed that is where term comes into play to fill the gap of the WL policy can not cover.
Now that is simplistic, if a business of any sort is involve of course it gets more complicated!
I didn't make it, I don't even agree with it for the most part but it does address the idea of how to come to a conclusion. I got this from an email sent by a friend, checking out the link of the image you find a the legacylifegroup.com/, removed the http according to forum rules. I'm sure if you ask them for permission they be more then happy to grant you usage, well they might want you to get appointed with a carrier thru them! I'm not even sure if it were they that created it, seems like I've seen it years ago thru someone else.
I personally use a yellow pad and a Curve Line to demostrate the need for Perm. and Term Insurance that seems to work effectively for me. LOL, I don't even use a laptop while meeting with clients! Use to use a flip chart but that went away real fast.
That is a very cool chart...rick anyway I could use that and show it to some agents on my team that are just starting out?? I think it would be a great thing for them to use!! _________________ ~Monique~
