Double Agent Posted March 5, 2008 Share Posted March 5, 2008 I don't sell LTD. I'm licensed to but I've never had a market for it. So I may be completely off on the quote. But I know I only pay $9 a month for mine through a group plan. I know short term disability is more expensive than long term. A good short term policy shouldn't cost more than $40 a month. So that tells me that someone in their 30s should be able to find a LTD policy for less than $20 a month. I think LTD is more important than STD. Most STD policies only pay a few months of wages. I'm not worried about losing 3 months pay. I'm worried about losing 2 years of pay. You could make the argument that social security would kick in before then...but there's no guarantee of that. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 Perhaps the insurance agent I spoke with is an idiot, because I asked for long-term disability and he quoted me some ridiculous amount that was was in no way worth it. If the rates are as low as you and Shiznit say, then I will definitely look into it (because the expected benefits may then indeed outweigh the expected costs). Forgive me if I was an arse...but I am passionate about my business. I am a multiple qualifier to MDRT and believe in protecting people form bad things that DO happen everyday. That being said, I ran a quote in Illinois for a Glazier....guy who cuts glass....and his premium for a 2 year benefit for a monthly income of 1500 per month was 140 per month.....this is a bad occupation class so it is more expensive. If youare a professional...white collar...rates are better because are you seriously in danger of falling out of your desk chair and getting hurt. Prinicpal and MetLife...along with Guardian have some good Dispay language for professionals.....rates are reasonable. Again, look at all the premiums...like payable to age 65...but worse case scenario....check out the two to three year periods as they are way more affordable and you could be on Social Security disability by three years in any event. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 I don't sell LTD. I'm licensed to but I've never had a market for it. So I may be completely off on the quote. But I know I only pay $9 a month for mine through a group plan. I know short term disability is more expensive than long term. A good short term policy shouldn't cost more than $40 a month. So that tells me that someone in their 30s should be able to find a LTD policy for less than $20 a month. I think LTD is more important than STD. Most STD policies only pay a few months of wages. I'm not worried about losing 3 months pay. I'm worried about losing 2 years of pay. You could make the argument that social security would kick in before then...but there's no guarantee of that. STD is usually picked up by some of the major employers....they self insure it. Some offer AFLAC and companies like it like Assurant. STD is VERY important as most claims are of this variety. LTD is equally important...but if a guy could only afford one...I pick STD. Now, the cost for LTD for a 30 year old will depend on his Occ. class. If he is a guy who builds sky scrapers...and his protected income is 5000 per month...no way it costs 20 bucks. You could read up on it versus guessing. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 STD is usually picked up by some of the major employers....they self insure it. Some offer AFLAC and companies like it like Assurant. STD is VERY important as most claims are of this variety. LTD is equally important...but if a guy could only afford one...I pick STD. Now, the cost for LTD for a 30 year old will depend on his Occ. class. If he is a guy who builds sky scrapers...and his protected income is 5000 per month...no way it costs 20 bucks. You could read up on it versus guessing. Thank you for the insight. I'll go read up on guys who build sky scrapers. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 Thank you for the insight. I'll go read up on guys who build sky scrapers. Just a suggestion...don't take it personal. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 Just a suggestion...don't take it personal. I'm not taking it personal. I just find it amusing that you take one of the most dangerous jobs and throw out a quote. Like I said earlier, I really don't have a market for LTD. I'm a different kind of agent. Not that there's any thing wrong with agents that sell whole life and LTD...but it's not my business. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 I'm not taking it personal. I just find it amusing that you take one of the most dangerous jobs and throw out a quote. Like I said earlier, I really don't have a market for LTD. I'm a different kind of agent. Not that there's any thing wrong with agents that sell whole life and LTD...but it's not my business. I guess my broader point DA was to make a much greater suggestion to you. let me ask you a question. Do you talk people out of buying permanent insurance policies? If so, why....and if you make this recommendation, are you prepared to get sued when it is the wrong recommendation. So, to fix that, why not put an A,B,C scenario to your recommendations. that way you can explain the pros and cons of each plan and allow the CLIENT to choose...then document. You will get sued by the heirs if they find out about this type of advice. If you do not believe me, ask the attorneys on this board. Objectivity is the key when you hold yourself out to the public as an advisor. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 I love permanent life insurance...just not whole life. I'll only write VULs and the occasional UL. Why would you purchase a whole life policy when the return is greater on a UL and it's guaranteed. The guaranteed rate on most whole life policies are 2-3%. You know whole life policies are a scam. Do the math. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 I love permanent life insurance...just not whole life. I'll only write VULs and the occasional UL. Why would you purchase a whole life policy when the return is greater on a UL and it's guaranteed. The guaranteed rate on most whole life policies are 2-3%. You know whole life policies are a scam. Do the math. Whole life is dividend paying life policies....permanent life is VUL's and UL's. Why is a whole life policy a scam? I would not suggest it as a hugh moneymaker....but certainly not a scam. Most can own them and stop paying premiums within about 20 years if the dividend growth is good. With a UL or a VUL...that guarantee is not available. Now, you can buy a guaranteed UL where you pay a premium for whatever years you wish to pick and the DB is guaranteed paid for, but those policies have virtually no cash growth and after about 30 years. Also, UL's tend to blow up if they are not funded properly....cause the interest rate is not guaranteed.....it fluctuates. Again, I like VUL's and UL's......but I am mindful of the fact that whole life is not a scam....when used in the proper scenario. Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted March 5, 2008 Share Posted March 5, 2008 (edited) This is worth reading if only to see weigie getting street cred. Edited March 5, 2008 by cre8tiff Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 Shiz, we'll just have to agree to disagree. There are lots of hidden secrets on the whole life policies. Do you tell your clients that they only get the death benefit if they die? That the accumulation account is not paid to the beneficiary and is retained by the company. I will not do that to my clients just so I can get a larger commission. I would rather them purchase a 30 year term and invest the difference into a Roth. At least they truly own it that way. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 (edited) Shiz, we'll just have to agree to disagree. There are lots of hidden secrets on the whole life policies. Do you tell your clients that they only get the death benefit if they die? That the accumulation account is not paid to the beneficiary and is retained by the company. I will not do that to my clients just so I can get a larger commission. I would rather them purchase a 30 year term and invest the difference into a Roth. At least they truly own it that way. You do understand net amount at risk and how to dissect a life insurance contract correct. VUL and UL's are all fine and dandy if they are funded properly...but in the later years, when that mortality curve shoots straight up....really puts a crimp on that cash account....and that only happens if you pick a variable death benefit...which means your clients are always paying for the net amount at risk. If you can dumb this down for your clients...it is easily explainable, however, you do however get PUA's via dividends....if the policy is participating. I would NEVER sell a non-par whole life policy....you are correct there. But one that is participating....that is a different story....that being said, I only sell about 10 whole life policies each year....the rest are overfunded VUL's or the single paid UL's......oh yeah....and LOTS of term. Edited March 5, 2008 by TheShiznit Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 This is worth reading if only to see weigie getting street cred. I don't understand what that means...why would weigie be getting street cred? Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 You do understand net amount at risk and how to dissect a life insurance contract correct. What's a contract? Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 What's a contract? Oh jeebers!!!!! Quote Link to comment Share on other sites More sharing options...
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