A real estate developer and self-proclaimed expert negotiator recently psychologically projection-vomited all over me about pitching products to people who don’t really want them.
… saying things like:
- Life insurance agents sell life insurance based on fear tactics and use guilt or manipulation.
- People loathe whole life and so have to be “talked into” buying it.
- Whole life is verging on a scam product.
- Yours Truly mayhaps doesn’t disclose all relevant facts before the sale so people end up not really understanding what they’re buying.
- People under my “negative reviews” have had a bad experience with me.
That last bit is amusing because people do write in occasionally to complain… but none of these people are clients and none of them were even PROSPECTIVE clients.
They are people who had a triggertantrum when I brought up the topic of whole life insurance either in one of my daily emails or in a public forum somewhere.
I disclose that in an attempt to present at least part of the other side of the story.
Which brings me to the remark about transparency.
That part is really very amusing.
I suppose I went out of my way to design a financial calculator (with the help of a CPA) which exists solely for the purpose of disclosing ALL of a permanent life insurance policy’s internal costs… and then recorded numerous in-depth life insurance explainer videos and meticulously edited them for clarity… and give every prospect and client an extended version of their life insurance policy illustration… and THEN comb through their contract and explain “the fine print” to them (and what it means)… AND THEN send clients a weekly email newsletter to show them how to use their policies and how to better understand their life insurance policy and their insurance company and the insurance industry in general…
… and I recorded a multi-part video series for my Monegenix Media™ Learnistic app users (which is free to access if you sign up to my email list), which walks them through a life insurance policy illustration in excruciating detail, and also every niggling little detail of a sample whole life insurance policy contract before they ever see or talk to me about life insurance…
… I suppose I do all of that as some sort of lame attempt to hide something or avoid disclosing all relevant facts so people end up not really understanding what they’re buying.
Anyway, this whole experience got me thinking about a few things.
One of those things is…
I’ve never had to put the screws to anyone to buy from me. And, even if I had the opportunity to do so, it would be a stupid thing to do.
Because a client who is pressured into buying will cancel (quite predictably), within the first month… probably before the first premium check has been cashed. When this happens, the insurance company will “claw back” any commissions and fees they’ve paid me… plus they’ll get really really upset with me because… believe it or not… insurance companies don’t make a profit on these contracts for at least a year and… in many cases it takes several years for them to recoup their costs. In fact, for a lot of companies, they won’t see a real return on the policies they underwrite for another 10 to 15 years. In other words, for the insurance company, selling whole life insurance is the ultimate long game. That’s why so few publicly traded insurers do it. It’s too capital intensive and it takes too long to pay off.
There are enormous costs.
- Paying underwriters to do their job.
- Paying for lab tests for the underwriting process.
- Transaction costs for the investments used to guarantee the death benefit and cash values.
And so on.
This is why I ask people very plainly: “Do you want to buy a policy? Do you want me to design a life insurance policy for you? ARE YOU SURE?”
I don’t want people canceling on me.
And, for the most part, they don’t.
My 10-year lapse rate is almost non-existent — less than 5 people. That means less than 5 people have ever canceled a policy I designed and sold to them. That’s unheard of in the industry.
But maybe the self-proclaimed negotiation expert is right. Maybe my clients are witless boobs who are easily wooed and fooled into buying scam products from a bunko artist.
That would be truly stunning since my clients are some of the most intelligent, independent, self-made individuals walking the Earth.
None of my clients have ever told me they felt pressured to buy… in fact, when I ask them, they often tell me (and their friends) the opposite.
There’s a reason I do business this way: It’s simple.
It’s simpler than trying to be a kung-fu negotiator or a guilt-tripping, sleazy, insurance salesman.
And it’s less stressful than scamming people and then constantly looking over my shoulder… waiting for a subpoena.
It’s more practical than trying to hide relevant facts and details from people who entrust me with their savings.
And, when you shuck it all down to the cob, it’s really the only moral way to do business.
Anyway, my main goal here is to provide facts and value and let you make your own decision.
If that means you don’t do business with me, so be it.
And I sincerely mean that. I don’t want people to become clients if they don’t value what I offer… I don’t want people to feel cajoled or tricked into buying something from me.
Not only is that sleazy… it creates ENDLESS drama and legal trouble and headaches for ME… AND for my crew (who are counting on me NOT to get them into legal hot water).
Anyway, the way I figure it is even if you DON’T do biz with me… at least you know this side of the financial planning story before you go.
Speaking of which, if you want to know the way my financial planning methods work… and you want to know whether they will work for you… then go check out my new video and book an appointment with me to chat about your finances.
It’s up to you.
More details when you join my email list.