Subject: Re: Re: Re: Primerica Insurance Sales

Comments:
: Most of the magazinaes your read recieve heavy advertising revenues from mutual fund companies. : Buy Term and invest the difference concept has been around for about 40 years, but it became popular in the 70's and early 80's when money market accounts were paying 8-10%. At that time, it DID make sense, since money markets offer little to no risk, and at that time, was non taxable. : With the advent of universal life (in particular variable life) this concept lost a lot of its benefit due to the tax advantaged status of the internal cash buildup of life insurance. If you're in any tax bracket other than the lowest, its a significant savings. Many mutual fund companies then successfully lobbied the Feds to change the laws and now we have '7 pay limit' laws that limit that tax advantage-- somewhat (however still advantageous). Also, now, no risk money market accounts are only offering 2-3%..at best 4-5. and the interest gained is fully taxable on a LIFO basis. : However, the real boat that this concept misses is that you DON'T make permanent insurance premiums forever (unless it was sold wrong). Ususally a permanent insurance policy either premium offsets, or cash offsets in about the 12-18th year..depending on company and/or policy. IN MOST CASES, this means that if you total a 35yr olds term premiums to 65 and compare with a permanent policy that has offset, THAT FIGURE IS ALMOST IDENTICAL!!!.. Why?..because the risk to the insurance company is IDENTICAL over that same period of time. Add that to the fact that with term insurance you will have LITTLE TO NO protection at age 70+ *(unless you want to pay exorbitant premiums) it's a no brainer to me. Primerica agents seem to insist you won't need life insurance past 65. That's wrong..a lot of times you need MORE- for a lot of reasons too lengthy to spell out here. If Primerica agents recieved the training they so desperately need, they would understand that-as Iv'e said before, they rarely have any advanced planning skills. : There's also one last issue...even if you spreadsheet it out, there's the human factor to consider. We very rarely live life like a spreadsheet- life is a messy business. We get divorces, sell our homes, tragedy hits etc. So to make the assumptions that we have our house paid off, that our investments always return 12%, that we never miss a premium, that we never need to change our policies..in my opinion, lacks a certain sophistication to financial planning. : The only person making a lot of money to the detriment of their clients is Primerica agents who skip town after they cash their paychecks. Has anyone ever been to a Primerica OFFICE? I'd like to hear from those people. Besides, I hope anyone handling money for people knows how to earn it well. AND...GOOD advice rarely comes cheaply. You get what you pay for in this world. : PS.Primerica agents are usually compensation about 95% of the first years premium (most term policies outside mutual life companies do) whereas good term or permanent rarely pays above 50%. Why? Insurance companies want the agents to sell this kind of term life--its pure profit-- less than 2% of term policies EVER pay ANY kind of benefit according to a study done by the US Government at the University of Penn about 7 years ago. : : Who are you kidding? Don't you read The Wall Street Journal, Business Week, Fortune, Forbes, Money? 99% of the time "Buy term, invest the difference" is highly recommended. Obviously, you sell the other crap, or have been brainwashed by your agent who is making a lot of money off of you!

Please enter the characters in the image above.