- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Whole Life Insurance Lapse Rate
Posted on 1/26/14 at 10:09 pm to GoCrazyAuburn
Posted on 1/26/14 at 10:09 pm to GoCrazyAuburn
quote:
Now, how is holding your policy to maturity a bad "investment"?
Never said the above was bad, maybe not great, but never said it was bad.
quote:
It's a starting point, but has no standing on an individual basis.
To me, this is like saying the quality of the pitcher has no bearing on whether a hitter gets a hit or not, getting a hit is entirely within the control of the hitter.
I believe that the high lapse ratio of WL is directly related to the aggressive salesmanship of agents who sell to people who are either too dumb to understand they should hold on to the policy forever, too dumb to realize what they are buying so they change their mind and drop it, or are too poor to afford it over their lifetime.
Posted on 1/26/14 at 10:13 pm to Stingray
quote:
To me, this is like saying the quality of the pitcher has no bearing on whether a hitter gets a hit or not, getting a hit is entirely within the control of the hitter.
No. The reason I say it is a starting point is because projecting past results as a perfect indication of future results isn't wise.
quote:
I believe that the high lapse ratio of WL is directly related to the aggressive salesmanship of agents who sell to people who are either too dumb to understand they should hold on to the policy forever, too dumb to realize what they are buying so they change their mind and drop it, or are too poor to afford it over their lifetime.
Ah, finally, you've stumbled into the correct realization. People don't understand the product, agents are dishonest, and sell it to people who are not in the situation to need or afford it. Thank you for finally admitting it. None of this makes WL bad. It makes agents who don't do their job bad.
A much more accurate way to interpret the study (though i'll disagree with the overall number) is 80% of people shouldn't have been sold WL. Obviously this isn't an accurate number considering the most lapses are after year 10 when the lapse could be due to surrendering the policy for its cash.
This post was edited on 1/26/14 at 10:23 pm
Popular
Back to top
Follow TigerDroppings for LSU Football News