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In Reply to: Re: Re: term vs. c.v. posted by ray on September 30, 2001 at 08:40:08:
: no, i'm comparing a death benefit to a death benefit. remember thats all that life insurance is.
Its more than that, but if you had delivered claims you'd know this. I have, so my perspective is different. =)
: : This is a good point. Cash value agents who have sold whole life insurance to customers who should have had term should be tarred and feathered and carted through town.
What about the agents that replaced permanent with term -- only to find that the insured was no longer insurable, and, being a rank amateur, did not make sure the new term policy was inforce before lapsing the permanent? This happens more often that some know.
:Likewise for those who have sold it as investments.
The life insurance contract CAN be an investment, in the right circumstances (COLI, BOLI, nonqualified plans, mortality swaps, 412(i) plans, Modified Endowment Contracts, et al.)
: well what angle do the c.v. sales people use? oh yes you'll need it to pay the estate taxes.
This is true, and has not changed. Unless you die in 2010, the tax has not been repealed. Plus, business continuation planning, succession planning, deferred compensation plans, etc., are situations where temporary solutions do not work.
: i meant an attorney on the golf course yesterday and we got to talking about this very subject. his remark about useing cash value insurance for that is nothing but B.S. and just a sales gimmick that the agent uses. he himself owns term. go figure .... that's the 2nd attorney in the last 4 months that has told me the same thing.
If you talked to only two attorneys in the last four months, I can see you're not active in the estate planning market, or for that matter, the business market and the charitable giving markets. Otherwise, you'd know smarter attorneys.
FYI - Most attorneys aren't estate planners, nor are most accountants, and for that matter, some financial planners, insurance agents or stock brokers. Anyone active in the advanced markets knows that most advisors specialize -- get them outside their specialty and you have someone who may be more educated and more intelligent than the typical lay person, but you're still dealing with a babe in the woods when it comes to areas they don't know (with your golfing buddy as case-in-point).