Comments on: Why do universal life and whole life policies fail? http://hinermangroup.com/blog/2007/03/10/why-do-universal-life-and-whole-life-policies-fail/ Who do you trust in Life? Wed, 07 Jan 2009 00:13:16 +0000 http://wordpress.org/?v=2.6.2 By: Hinerman http://hinermangroup.com/blog/2007/03/10/why-do-universal-life-and-whole-life-policies-fail/#comment-22328 Hinerman Tue, 16 Sep 2008 12:47:08 +0000 http://hinermangroup.com/blog/2007/03/10/why-do-universal-life-and-whole-life-policies-fail/#comment-22328 When a whole life or UL fail, the premium that has historically been paid is no longer adequate to pay the costs of insurance. The customer is asked to pay more and if they do, they will be asked to pay more again. Once a policy reaches the point where it isn't meeting it's own needs, the problem gets worse each year with higher mortality costs. Those go up every year period. If the customer doesn't pay the higher costs, the policy runs out of cash and lapses. This may take some years, say 5-10, but it will happen. When a whole life or UL fail, the premium that has historically been paid is no longer adequate to pay the costs of insurance. The customer is asked to pay more and if they do, they will be asked to pay more again. Once a policy reaches the point where it isn’t meeting it’s own needs, the problem gets worse each year with higher mortality costs. Those go up every year period.

If the customer doesn’t pay the higher costs, the policy runs out of cash and lapses. This may take some years, say 5-10, but it will happen.

]]> By: Carl S http://hinermangroup.com/blog/2007/03/10/why-do-universal-life-and-whole-life-policies-fail/#comment-22322 Carl S Tue, 16 Sep 2008 03:51:10 +0000 http://hinermangroup.com/blog/2007/03/10/why-do-universal-life-and-whole-life-policies-fail/#comment-22322 Can you explain exactly what happens when the policy unravels? You mention a bunch of different things in this article. It is a tough business and most agents fail and those that last are not what you would consider successful. OK. So it is tough because of the product confusion. Life insurance has such a bad reputation and going to this and all your related articles makes me think, OH, this is why Life insurance is evil? You're successful right? How come? Thank you, Can you explain exactly what happens when the policy unravels? You mention a bunch of different things in this article. It is a tough business and most agents fail and those that last are not what you would consider successful.
OK. So it is tough because of the product confusion. Life insurance has such a bad reputation and going to this and all your related articles makes me think, OH, this is why Life insurance is evil?
You’re successful right? How come?

Thank you,

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