top of page
Search

What should you know about life insurance awareness month????

September rolls around every year like clock work and you begin to see a lot of Agents pushing Life Insurance. Because of COURSE, IT IS LIFE INSURANCE AWARENESS MONTH!! However, my agency and I talk about Life Insurance all year long, because we live and breathe life insurance. (Yes, pun intended.)


The truth is not all insurance companies are created equal.

The truth is not all life insurance policies are created equal.

The truth is not all AGENTS are created equal.



Here is a short 5 minute video on Life insurance. Watch before you buy!


The truth is not all insurance companies are created equal.

Listen there are over 700 life insurance companies in the United States. Not all of them are the same. Just like coaches in women's basketball. We know that Kim Mulkey is one of the best because she just signed a 10 year contract for over $32 Million dollars. Whether you like her or not, she is an ASSET to LSU's basketball organization! Offense sells tickets, Defense wins games! Just like life insurance companies. They are assets to the individual policy owner. We know that life insurance is a tier one capital asset. Some insurance companies are solid on Whole Life, some Indexed Universal Life, others are great at final expense, & I can go on and on. What we know is that their is NOT one insurance company who is GREAT at all types of policies. Some pay higher dividends. Some are better at just term policies. Some are guaranteed issue. So... Not all insurance companies are created equal.


The truth is not all life insurance policies are created equal.

I do believe their is a time and place for all policies. I wouldn't be an insurance agent if I didn't truly believe that. However, the point of this section is for you to understand that the same types of policies are not created equal either. For example; a whole life insurance policy is not the same as a participating whole life insurance policy. So, if an agent is selling you a policy based on cash value you should be asking them what is the Rate of Return and does this insurance carrier pay dividends. A person can buy a term policy and it just be a death benefit or they can purchase a term policy with a return of premium/cash back option or they can purchase a term that can convert. To cover their debt for 30 years and convert to permanent to cover them the rest of their lives. Bottom line is you need to understand that not all insurance policies are the same, even if they have the same name. (If you remember from above insurance companies are not the same. They have different specialties and that makes a difference in their policies.)


The truth is not all AGENTS are created equal.

I may catch some heat for stating this, but not all agents are created equal and honestly I do believe everyone should stay in their own lane. Just like I wouldn't go tell Kim Mulkey how to Coach her team, would I? Those women on her team is her specialty and winning games is her specialty. Truth of the matter is... Just like the 2 sections above we are not all the same. We may hold the same State Licenses, but we all have our own specialties. Some agents do specialize on the financial side of the industry. (That would be my agency and I.) Some Agents primarily write property and casualty with a little bit a life just to give you a discount on your auto. Some agents only write Medicare or Health insurance, while some only write annuities. The list can go on and on.... This makes a huge difference when you go to purchase are policy, because are you going to want to buy a policy from an agent who writes a couple life policies a year or from an agent who only has access to ONE carrier? No, your not. Well you shouldn't, but I see this all the time.


However, before you purchase a life insurance policy you should ask yourself....


1. What is this agents specialty?

  • This is important to know before you buy, because you want to buy from someone that KNOWS what you need and the best carrier for your situation.

2. Can they write only ONE insurance carrier or multiple insurance carriers?

  • This is important to know before you buy, because you want to know you are getting the best option for you and your financial goals.

3. What is my purpose for buying this policy?

  • This is important to know before you buy, because how would the agent know what carrier and policy is best for you and your situation if they don't know your purpose.

4. Are they just giving me a quote and telling me to pick one?

  • This is important to know before you buy, because the truth is this agent does NOT write life every day or even come close to writing it on a regular basis.

5. Are they explaining my rate of returns and dividends?

  • This is important to know before you buy, because if you are buying a policy for the CASH VALUE option you should always be told your ROR and if they pay dividends and how long has that company paid dividends. Have they missed any years paying, etc.

6. Are they explaining guaranteed numbers and non guaranteed numbers to you?

  • This is important to know before you buy, because you should be seeing a full illustration with a lot of numbers on the pages with specific meanings. Truth is if you are buying a policy with Cash Value your agent should be discussing all of these things with you.

7. Are they explaining the financial strength of the insurance carrier?

  • This is important to know before you buy, because the better the carrier the better the dividends, better returns, etc. Remember above when I said not all insurance carriers are not created the same.... Well, the financial strength of the carrier is a BIG deal.

8. Are they comparing out your options with multiple carriers?

  • If you are buying a life insurance for the purpose of CASH VALUE and they only have ONE option for you, I want you to go get a 2nd opinion and option to go over. THIS IS HUGE, ESPECIALLY WHEN YOU ARE OVERFUNDING A POLICY!!!

  • Or is it just a death benefit and just looking for that cheap term? Is it the cheapest term?

9. Are they telling you to buy term and invest the rest?

  • Truth of the matter this is my most HATED statement, especially when it comes straight from an AGENT. If an agent is stating this to you they are uneducated on Life Insurance and you should always get a second opinion. Here's an example for funnies.... & lets take it back to basketball for reference... Your star starting point guard who has 30 assist a game and scores 20 points a game comes down on her knee... You go to the first orthopedic doctor and that doctor states... This player will never play another game in her lifetime. Do you take that at Face Value or do you go get a second opinion?

  • Let me give you another reason why this is a dumb statement.... I sit with WAY too many seniors for Medicare & Retirement guess what??? They want that large term again that cost pennies on the dollar and guess what???? It is NOT obtainable for that client. They are older now and usually have some sort of health issue. Therefore, buy term and invest the rest does NOT happen often. Most of these seniors still have debt and living pay check to pay check and on Medicaid and Medicare, because they never invested the rest.

  • We also know that Life insurance is an asset. You can put away as much money in life insurance that you want. (Because of the IRS code 7702.) We know that rich people do not use cash to buy things or pay off things... We know they buy an asset and leverage an asset. It is a protected asset as well.


10. Are they asking you a series of questions before you are purchasing this policy?

  • I am not sure I really need to explain this, but if an agent doesn't understand your why how can they make a Professional suggestion and option on your situation.

It is life insurance awareness month and although we love this month, because people are talking about life insurance a lot. It is SO important to know the insurance carrier, policy and agent. There is a place for everyone and a place for every policy.


20 views0 comments

Recent Posts

See All

Comments


bottom of page