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Exposing the Mindset of a $40 Million-Dollar Producer
Whole life insurance takes on Scrooge and Marner Bank By Jeffrey Reeves MA
Say one of your clients has an appointment with Silas Marner, the not-so-friendly banker at Scrooge & Marner Bank. After introducing himself, he says, "Good day, Mr. Marner. Thanks for taking time to speak with me today. I wish to purchase an asset of real property. Mr. Marner, the property I want to purchase is valued at $1,000,000."

Here are the terms your client says he would like to have for this purchase:
  • I want to purchase this property with no down payment other than the first monthly payment.

  • I also want to purchase the property without any credit check. I would like your decision based solely on my willingness to commit to level monthly payments.

  • I want your bank to guarantee that those payments will never increase.

  • I want a guarantee from the bank that the property will never decrease in value.

  • If your bank successfully invests my monthly payments, I want your bank to refund a portion of the earnings from those investments to me.

  • I want any growth in the value of the property I am buying to be tax-free.

  • If I decide later that I no longer wish to own this property, I want the bank to guarantee that the equity I have built up will be paid to me in cash or as a lifetime income that I cannot outlive and that the property will revert to the bank.

  • If I decide that I don't wish to make payments for some period of time, I want the bank to automatically make those payments for me as a loan against my equity and at a guaranteed rate of interest.

  • If I want to borrow against my equity for any reason, I want the bank to make the loan without question or qualification.

  • If I do borrow, I want the bank to only charge me the guaranteed rate we agree upon before signing the purchase application -- even if the loan is requested years into the future -- and I want the bank to accept any payments I make, even if they are less than enough to repay the loan.

  • If I die prematurely and before the property is fully paid for, I want the bank to pay my heirs the entire $1,000,000 less any loans I have taken, regardless of how many payments I have made -- even if I die in the very first month after purchasing the property.

  • I want to be able to make extra payments without incurring any penalty or expense, and I want the bank to keep track of them for me.

  • I want to pay the bank a few extra dollars each month so that if I get sick or hurt and can't work, the bank will make my payments for me.
"So, what do you think Mr. Marner," your client asks. "Do we have a deal?"

Silas Marner responds, "No! No to everything. Such foolishness is wasting my time. My bank doesn't work that way."

A different approach for better results

A conventional banker finds these terms ludicrous; however, if you were to apply those questions to a whole life insurance contract from a mutual company, the answers would all be "Yes!"

It's true. Your client can purchase a $1,000,000 asset that is recognized as real property and requires only that he demonstrates a need and qualifies medically. This asset:
  • Guarantees a level monthly, quarterly, semi-annual or annual premium payment

  • Lets you skip payments if you wish and automatically deducts the payments from your equity account

  • Guarantees a tax-free increase in equity each year

  • Commits to the payment of dividends when earnings exceed what was planned and expected

  • Allows you to take a loan against your equity at will, requiring no qualification and cheerfully delivering your check within a day or two

  • Guarantees the interest rate that you must pay when you borrow from your equity account

  • Allows you to repay loans against equity on your own terms

  • Provides variable amounts based on your ability and resources

  • Has irregular times based on your needs, not theirs

  • Assures heirs' full value of the asset, less any outstanding loans, at your death

  • Promises to pay your client's premium if he is sick or hurt and can't work
Wouldn't a "bank" like that be valuable to your clients?

Dividend-paying whole life insurance policies from mutual insurance companies have been delivering this kind of power and flexibility to Americans for more than 100 years. During the past 30 years or so, however, many in the financial services industry have ignored this incredible tool and even treated it with disdain.

Chasing returns became the mantra of the industry and look where it's gotten us. Take this opportunity to explore the advantages of dividend-paying whole life insurance policies from mutual insurance companies and how your clients can benefits from such a policy.

*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.