Life Insurance - Learn From an Old Agent

Life Insurance is an insurance product that pays at the death of the insured. It really should be called "Death Insurance," but people don't like that name. But it insures the death of an individual. Actually, what is insured is the economic loss that would occur at the death of the person insured.

Those economic losses take a lot of different forms, such as:

- the income stream of either "breadwinner" in a family

- the loss of services to the family of a stay-at-home-mom

- the final expenses at the death of a child

- final expenses of an individual after an illness and medical treatment

- "Keyman" coverage, which insures the owner or valuable employee of a business against the economic loss the business would suffer at their death

- estate planning insurance, where a person is insured to pay estate taxes at death

- "Buy and Sell Agreements," in which life insurance is purchased to fund a business transaction at the untimely death of parties in the transaction

- Accidental death insurance, in which a person buys a policy that pays in case they die due to an accident

- Mortgage life insurance, in which the borrower buys a policy that pays off the mortgage at death - and many more.

Life insurance has been around for hundreds of years, and in some cases, has become a much better product. The insurance companies have been able to develop mortality tables, which are studies of statistical patterns of human death over time...usually over a lifetime of 100 years. These mortality tables are surprisingly accurate, and allow the insurance companies to closely predict how many people of any given age will die each year. From these tables and other information, the insurance companies derive the cost of the insurance policy.

The cost is customarily expressed in an annual cost per thousand of coverage. For example, if you wanted to buy $10,000 of coverage, and the cost per thousand was $10.00, your annual premium would be $100.00.

Modern medicine and better nutrition has increased the life expectancy of most people. Increased life expectancy has facilitated a sharp decrease in life insurance premiums. In many cases, the cost of insurance is only pennies per thousand.

There is really only one type of life insurance, and that is Term Insurance. That means that a person is insured for a certain period of time, or a term. All of the other life insurance products have term insurance as their main ingredient. There is no other ingredient they can use. However, the insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. They also vastly enrich the insurance companies.

Term Insurance

The most basic life insurance is an annual renewable term policy. Each year, the premium is a little higher as a person ages. The insurance companies designed a level premium policy, which stopped the annual premium increases for policyholders. The insurers basically added up all the premiums from age 0 to age 100 and then divided by 100. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost.

The same level term product can be designed for terms of any length, like 5, 10, 20, 25 or 30 year terms. The method of premium averaging is much the same in each case.

But this new product caused some problems. Insurers know that the vast majority of policyholders do not keep a policy for life. Consequently the level term policyholders were paying future premiums and then cancelling their policies. The insurance companies were delighted because they got to keep the money. But over time, they developed the concept of Cash Value.

Cash Value Insurance

With Cash Value insurance, a portion of the unused premium you spend is credited to an account tied to your policy. The money is not yours...it belongs entirely to the insurance company. If you cancel your policy and request a refund, they will refund that money to you. Otherwise, you have other choices:

1. Use the cash value to buy more insurance

2. Use the cash value to pay existing premiums

3. You may borrow the money at interest

4. If you die, the insurance company keeps the cash value and only pays the face amount of the insurance policy.

So, does this cash value product make sense? My response is "NO!"

Cash Value Life Insurance comes in lots of other names, such as:

- Whole Life

- Universal Life

- Variable Life

- Interest Sensitive Life

- Non-Participating Life (no dividends)

- Participating Life (pays dividends)

Many life insurance agents and companies tout their products as an investment product. But cash value insurance is not an investment. Investment dollars and insurance premiums should never be combined into one product. And investment dollars should NEVER be invested with an insurance company. They are middle men. They will take your investment and invest it themselves, and keep the difference.

Think about the methods that agents use to sell life insurance, and compare them to any other type of insurance. What you'll see is that life insurance sales tactics and techniques are ridiculous when compared to other insurance products.

Would you ever consider buying a car insurance policy, or homeowners policy, or business insurance policy in which you paid extra premium that the insurance company kept, or made you borrow from them? But, curiously, life insurance agents have been wildly successful convincing otherwise intelligent people that cash value life insurance is a good product to buy.

Care to guess why insurance agents have aggressively sold cash value insurance and eschewed term insurance?

Commissions.

The insurance companies have become vastly wealthy on cash value insurance. So, to encourage sales, they pay huge commissions. Term insurance commissions can range from 10% to 50%, sometimes even 100%. But cash value insurance commissions can be up to 100% of the first year's premium, and handsome renewal commissions for years after.

But it's not just the commission rate that matters. It's also the premium rates that come into play. Term insurance is FAR CHEAPER than cash value insurance.

Here's an example of a 30 year old male, non-smoker, buying $100,000 of coverage:

Term insurance costs $0.50 per thousand for a premium of $50.00. At 100% commission, the commission would be $50.00.

Cash Value insurance costs $12.50 per thousand for a premium of $1,250.00. At 100% commission, the commission would be $1,250.00.

So you see that it would be easy for an agent to place his own financial well-being ahead of the well-being of his client. He would have to sell 25 term policies to make the same commission as only one cash value policy.

But, in my opinion, that agent would have violated his fiduciary duty to the client, which is the duty to place the client's needs above his own. The agent would also have to set aside his conscience.

My opinion is that life insurance agents operate from one of three positions:

1. Ignorance - they simply don't know how cash value insurance works.

2. Greed - they know exactly how cash value insurance works and sell it anyway.

3. Knowledge and Duty - they sell term insurance.

Which agent do you want to do business with?

How do I know this stuff? Because I sold cash value life insurance early in my career.

When I started as an insurance agent in 1973 I knew absolutely nothing about how life insurance worked. The insurance company taught me to sell whole life insurance, and to discourage clients from term insurance. But, after some time of reading and research, I learned that cash value insurance is a bad deal. I began to sell only term insurance. I refused to set aside my conscience. I also went back to some early clients and switched their policies from cash value to term.

The insurance company fired me for that decision.

I found a new insurance company that only sold term insurance and also paid high commissions. I made a good living selling term insurance, so I know it can be done.

So, as you shop for life insurance, please accept the advice of an old agent. Never, never, ever buy cash value life insurance. Buy term insurance.

Now, I'd like to offer you two special reports at no cost. One is "5 Things To Do When Shopping For Car Insurance," and the other is "5 Things To Avoid When Shopping For Car Insurance." Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.

P.S. WARNING!! Do Not Buy Insurance, or Submit an Insurance Claim Without Visiting This Website!
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Life Insurance Quotes: What To Expect From An Agent

If you are looking for life insurance quotes, sooner or later you'll talk to an agent or representative of the life insurance company. Here are some ways to prepare, and know what to expect when you are ready to meet with an agent

You should have a pretty good idea of how much coverage and what type of life insurance policy you think is best for your situation. This isn't absolutely necessary: a good life insurance agent will take the time to assess your financial situation and explain your choices. But if you've have a general idea, you can make the most of your time with the agent. It also allows you to get accurate comparison quotes between different agents before you meet with them.

Most likely, an agent will start by asking you questions about your income, net worth and financial goals such as putting children through college. They may ask you basic questions about your health such as your age, any medical conditions, your family medical histories and whether you smoke or not. Of course you may be required to take a medical exam when you apply.

The agent should explain the different types of insurance policies that are available to you. This would include different term life insurance and whole life insurance plans. They also might talk to you about annuities and other financial products if they seem appropriate to your situation.

It's important that you feel comfortable with the way the agent is explaining your options and how he or she listens to your needs. If you feel like they are being pushy, particular with one type of policy, you'll at least want to get a second or third opinion. And make sure you understand completely all the different aspects and definitions of a policy. After all, a policy is a legal document.

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What role cites a game officer when obtaining a term life insurance?

The agent has long been the individual one invoked when seeking life insurance coverage. The agent has always been the expert who had the relationship with the customer and work on behalf of the client for the right product at the best rate. But wait a minute! By definition, the agent is "one authorized representative of an insurance company that sells and services of insurance contracts." Therefore a plu degree or less is also representing the interests of the insurance company, which may open the door to conflict.
Perhaps that is part of the reason more and more life insurance is sold on the internet on the web sites that employ sophisticated quoting software to compare rates between insurance providers and to provide data for comparison to the client, automatically regardless of what business has the lowest rate.
Here is how the process online. The person search term life insurance quote. It is presented with a choice of many web sites corresponding to the search. On the choice of the site, the login page presents a quote form. Several simple questions are answered on the date of birth, sex, if a smoker or step, the State of residence, the amount of coverage required, the term desired of the insurance policy, and if premiums will be paid every month or every year. That's all! The form is submitted and a few seconds software collects information from dozens of insurance providers competing for the site speed, amounts, etc. requested on the application form. The comparison information is provided to the applicant and it allows you to select the best rate.
Although there are still insurance agents in the business of selling insurance for certain insurance contracts, the trend today is for the person to go online and to use a site citing which makes available all providers rates without obligation to any business. In the process online agent no role in obtaining a quote for life insurance term.

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"Benefits of a local insurance agent vs online direct" "insurance"

Since the year 2000 started direct insurance like GEICO and progressive, as are top players in the insurance industry. The insurance industry calls "direkten" because they sell directly to you on the Internet without agents who can advise these companies which cover may be right for you, and they offer only a product of the company. I read an article about the amount of these companies spend money on advertising, "said the October 2010 consumer reports, these quirky characters in car insurance TV show could you more laughs than actual savings." "According to a survey 2009 only 14 percent of consumers, the premiums compared, found that she had saved money to my switch to the direct air carrier".
Here, three main points, is why a local insurance agent is a must for the purchase of insurance is.
(1) The first point and probably most importantly, if you buy from a local agent, they are face to face to help you in selecting the right cover. A local agent can collect some information about your assets and chose the correct liability to protect cover you, your family and your assets. You can help the deductible on your vehicles according to your budget and needs focus also give you the right comprehensive and collision. Stay local and the only way to go is an agent, who cares if you are properly insured and always the best value possible.
2. Claims! No one everyone thinks, that they want, have a claim. But you have to have ever you would like to purchase from Kagi, a local agent. A process, the claims can be a long ordeal when dealing with insurance. If it ever a problem, will you want to a local agent, that it to help. Otherwise, if you purchased insurance directly online and not have an agent, it is the insurance company you vs.. No one is on your side to defend your rights.
3. Saves money! In the long run, will you go to save money with a good local independent agent. Is a general misconception about insurance, that is with local agents more, costs you wrong. Some companies want to, since go, then they not numbers of agents commissions of the bag. For example, progressive rates are identical, if you go through an agent or directly online with the exception of one case. They started an incentive for consumers, direct, where they offer a discount of $50 on your first 6 months of premium buy. Then your rate jumps back to level with what an agent can offer you. Is $50 for 6 months, no representatives of worth, you make sure that you have the right coverage? I do not believe, but this is for you to decide.
As you can see, it is very important a local insurance agent. Insurance companies are relieved every day, to insurance online and as insurance gets more complex purchase to a local caring agent to protect you, want to.

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Become An Insurance Agent

Handsome commissions allow between 20 and 35% for anyone with the right skills and build motivation, a successful business in the insurance industry. Whether you decide to start a franchise to buy or your business from scratch, has this business potential, a handsome return and at the same time, to help others manage their risks effectively produce.
Before, you don't get us even ahead of us
Insurance agent requirements differ from country to country, so it's important, before you begin to do research. Their local Department of Commerce or searching on good place to Google started to get. In most countries, you need a license agent. This includes usually a relatively short course and examination.
Finally you need to succeed with excellent sales skills. Most of your working day will be issued to make consulting with clients and sales. Its very important that you are relaxed to foreign and sell your policy can make without potential customers feel pushed or unpleasant.
The start-up
There is not much need to get started. You need to a small office at home with a work area, desk, Chair, computer, printer, Office software and business stationary such as business cards, letterheads, and an invoice template. If you are on a tight budget you should download software suite open Office instead of the purchase of Microsoft Office as your.
The choice of a go it alone or buying insurance franchise depends largely on your budget. Franchises sell for between $50,000 and 75,000 US dollar (USD). If you can afford this one is much simpler route to take. Training, licensing, branding and support a few will all give you provided. If you do not have the budget or simply prefer to start your own business, is the independent option for you. As an independent insurance agent, you must be connected with an insurance company. Extensive online research in the features and benefits offered by each insurance company before registering for a program to do. Is the best information to seek feedback from actual agents, that information is as follows, often found on forums, user groups, such as Yahoo groups and maybe even the occasional blog.
Making it work
The key to success in this highly competitive industry is to specialize in a small part of the market. For example, you could focus on small business insurance or commercial property insurance, the possibilities are endless. Companies fail rarely out to fokussierend; shy you focus not on a very small niche in the industry. Home business vs. small business insurance is insurance a good example of this.
Marketing
Once you're set up, Word of mouth for a large part of your new business will be. Up to this point, you must work hard to establish itself in this very competitive industry. Advertise your services in the local classifieds, community of publications, on posters, signed outside your home online by developing a Web site with useful content and cold calls.
Their advertising efforts directly in your chosen niche target. If for example you in insurance for boat's, focus specialize your efforts often is by advertising in places this target group. Places like shipping publications or Yacht Club.
Do not forget
Do not forget hidden costs, such as membership fees to be taken into account, industry associations and omissions insurance.

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What is A home based travel agent?

Many people are unclear about the travel industry. Travel agents are often as be the same as real estate agents. A travel agent or more specifically a home based travel agent is an exciting career change or retirement option. Some people do it full time while many are doing it as a part time company.
A travel agent books travel for customers and suppliers paid a Commission on the reservation. For bookings which suppliers can a Commission not on numbers, a service charge for its time calculate also the client a travel agency. An example is checked out, when a hotel for a client to book the hotel then would send you a review of the Agency to the client. Before taxes and charges, most hotels pay 10% of the price of the hotel. A $100 per night hotel reservation $10 per night for the travel agency means that the booking is made. This hotel would the same cost, whether the customer a travel agent or books through the hotel directly. In many cases, the travel agency can get a better price. It costs the customer not use the travel if the travel agency does not charge service fees.
Can someone do this? To work with suppliers, you must have established an account with the supplier. Most require an agency that contains a number, IATAN, CLIA or arc. IATAN travel agent is available for international airlines network. CLIA is for cruise lines International Association. ARC stands for airline reporting Corporation. Each requires different things including the sales, money in the Bank, this membership experience or training in the industry and membership fees. Many will require $1,000,000 or more insurance mistakes and omissions.
For the average travel agency, membership, no way with some organizations and independent representatives or external agent is so that the agent is a team with an agency. There are not enough also benefits of working with an agency, because the most travel agents can earn Commission in higher and bonuses with a particular supplier. Working with an agency with many agents can increase the Commission percentages, which calls the agent for joint sales of all agents of the Agency. Support is also very important as a successful agent. Agents that work with others tend to feel more isolated and to learn, to do all solo. Because no agent can have experience, anywhere in the world or stay in any hotel or resort, others can advice you which is really helpful.
The future of the travel agencies will be always in question. The truth is that the industry has changed in many ways. Some changes have been for the better, some for the worse. Many airlines have cut commissions to travel agents. There are however many other suppliers, travel agencies more than ten years ago to pay. Cruises uses, only the rich and now people in every book income booked cruises. Every year people on cruises are going more and more. Most people say they want to want to go on a cruise at least once and many who go on their first come home to another book.
You can earn Commission on many travel reservations.
Hotels rental cars tour packages of cruises some airline tickets of international airline tickets travel insurance ground transportation including limos attraction tickets and train tickets
All people must travel arrangements at some point in time. If you need reservations road trips. Those who have to need on a business trip airline tickets, car rentals and hotel reservations. Families want to love holiday with their experience. People visit family and relatives. Most people who gain money say that they want to spend it to a pleasant stay. Newly married couples go on honeymoon. You are selling something, this is hard to sell. People contact you for help, you are not called them or approach them trying to Don?t want to sell it to them.
Awareness is the main thing have to do any travel agency. Most people put travel agents in the same category as real estate agents. You believe that it costs in addition to a travel agency use. This is not true. In many cases, a travel agency can get a better price than the general public by the supplier, working only with travel agencies. Many people know book not all options for a holiday. A good travel agency does. As soon as people paid as a travel agency gets trained, they are more willing to work with travel agencies. If a person who knows, if he or she can book a hotel and it costs the same price regardless, he or she will work with you. It is important, so that people know how to save time and money on their travel arrangements can help.
So as get you in the industry? Many people think they need to go to school or are certified. This is not true. You can in the industry and begin training. I recommend Don?t thousands on a travel School spend everyone until he or she knows this is a career, he or she really want to pursue. The truth is that you avoid the trained thousands spend to get. There are many courses to travel agent of suppliers. There are also organizations as ICTA (Institute of certified travel of agents), the courses offer how to get more years experience in the industry. CLIA also offers courses. There are some agencies, which will offer training. Even if you choose a career, you want to track that this is you have to not spend to be thousands, educated and competent travel agent. There are many courses you can take with suppliers and organizations to obtain a better education in travel. I really think that a Hands? is the best way to a better travel agency. Is your clients need to learn to find cooperation with suppliers and how the information an important part of becoming a good travel agency.
How is one an agency with work? There are a few organizations dedicated to independent travel agencies. NACTA and OSSN are the top organizations. NACTA is for the National Association of commissioned travel agents. OSSN stands for outside sales support network. You can search online for travel agency home based programs. I would never someone spending a lot of money, recommend this company to reasons. It is the key to the first try and see if it is something that you really want to do and training received, before you invest too much money in you. First you get in the industry and see whether it is really a career that is best for you.

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