WARNING! Yesterday I came across a story so heartbreaking and horrific that I got very angry. It was Sunday and I keep from posting any business material on that day for good reason. I sent a message to the troubled young man who posted this story on an Agent's Life Insurance Facebook page called "LIFE INSURANCE AGENT DISCUSSION" I will keep him nameless but you can go to the Facebook page and see his post for yourself.
I warn people constantly and preach when it comes to life insurance "BUY TERM and invest the difference" because it works. 98% of the total U.S. population does not need a permanent cash value life insurance policy. ONLY THE ULTRA-WEALTHY do for estate tax reasons. The main purpose of a policy is to replace lost income due to the PREMATURE DEATH OF THE FAMILY BREADWINNER(S). Who would be relying on your income at age 75? 80? 85? 90? and up. Of all the policies in force right now only around 22% are cost-effective affordable term policies. The rest are in my opinion "Rip-off policies that are fleecing the masses" What this Agent did in my opinion was criminal and yet thousands of people are sold this type of policy every month. What this young man and wife needed were 2 (30) term policies. This is what should have been originally sold to him. What happened? Now he is buried in Whole life policies that will ruin his life. Read his desperation below. I did reach out to him to solve his problem but he has not responded yet. HE WROTE THIS:
"I'm not an agent. I need some help to better understand my options from professionals not emotionally or financially attached to my policies. Here's what I have:
My WL Policy: $3,451,718 (face) - $3098 per mo.
Wife WL Policy: $2,000,000 (face) - $1586 per mo.
Twin Boy 1 Policy: $2,225,890 (face) - $834 per mo.
Twin Boy 2 Policy: $2,225,890 (face) - $834 per mo.
My Disability Policy: $13,780 (mo. indemnity amt.) - $756 per mo.
All of the WL polices noted above are through Guardian and Paid-Up at 121. All policies started from zero and we're looking at cash balances around $100 on each.
Purchased my policies in Nov. of 2018 and my wife and kids policies in February of 2019. My twin boys were born in November of 2018.
Total spend across all policies: $7108 per month.
The agent who sold me these polices is a family friend so I went along with his plan. I knew in my gut something was wrong in March of 2019 and have expressed financial concerns on a handful of occasions (6+) by phone where he's talked me off the ledge and encouraged me to "keep going" because there's "nothing that can be done" until after 12-13 months paying into the polices and I'd lose everything we "worked so hard" to put together.
I signed these policies while sleep deprived, adjusting to being a new Dad myself, and was encouraged by my Dad's friend (the agent) that I was doing the right thing to protect and provide for my family now and for generations to come...
We can't afford these payments (7 months of runway on liquidity without selling assets) so I'm looking for options. Our household expenses with twin boys increased a ton over the past 13 months and my wife and I lack the time to drastically increase our income to pay the premiums as someone needs to watch the twins.
I don't care about the agent getting "charged back" at this point as he's robbed a year of my life and put myself in a space of unnecessary stress, fear, anxiety, guilt, and hopelessness at certain points.
My wife doesn't work much because she watches the twins so she's making less than $20k per year now and the boys obviously don't produce income. I'm healthy, work from home, and trying to rebuild my business after a tough year of being in a poor state of mind."
I'd like to significantly reduce the face amounts to actually protect my family with proper coverage and have Guardian cut me a check back for the difference on what was already paid in, given the circumstances. Would that be possible or an option?
I need to overcome my fear of dealing with this agent with some quick guidance from other professionals.
Asking for this help was not easy. Thank you in advance.
If you feel that you have also become a victim contact me @ (602) 425-0825