Now don't be getting on 6-5 Agent
For young families starting out without a lot of discretionary income I'd say term would be best route in most cases--but will agree with you permanant most definately has its place. amazingly most permanant products I write are on older people-many above 60--whose term ran out.
--have had a little lull with the revamping of estate taxes--but think they will be returned to days of old--unfortunately.
Franky--I like the ROP term for people in mid 30's 40's-- that are good candidates for estate problems later--they pay the term premium--if they die benificiary gets proceeds--if they don't they have 2 alternatives--if they want permanant plan and health warrents it they can dump the cash back lump sum into universal life and premium won't be much diff than if they took it out 20/30 years ago--if they don't need it they got nice little bonus for retirement.
Agent-- Have a story to share with you. I have nest of wealthy clients in little town up north of BG--most old money or made a lot in coal--however they don't like things they can't understand--Can't talk to them in terms they couldn't understand--or be to analytical. had most of their health insurance for years and was playing golf with one oneday and he asked me about estate taxes and tells me that he and several others had been to seminar but couldn't grasp concept and didn't like dealing with strangers.
He ask me if I stop by afterwards and look over material they gave everyone and try to explain to him what guy was talking about.
I stopped by after golf and this guy had about 20 papers with charts-graphs-IRS codes you name it--enough info to confuse a banker.I'm sitting there wondering where to start--(you don't ask these people their net worth--and the better the friend the more it applies.)
I turn paper on blank side and tell Ed--I'm going to make this as simple as I can--If you don't have trust after you and wife die you will pay about X% in taxes to gov on any assetts you have over X amount. Now if you choose rather than give it to gov you can take small amounts out of taxable amount and give (at that time $10,000) to each of your kids--which I would suggest you do immediately if not doing so already--and if you want to and your health allows you--you can consider alternative-compound the $10,000 via life insurance tax free to them-told him if he'd like to know about 2nd option to call me and I'd run some quotes.
So only thing I left him was sheet of paper with Estate taxes cap and % he would owe of any amount over.
Next day he called and said when I was in town next week - to drop by his house. I did--showed him the figures--only thing he asked was -I have 4 children--does that mean I can do $10,000 for each one?
I said yep--and this was just the beginging--as with small nest word gets around--several others from country club called in the following month--and most of their calls was "wayne I got X amount of kids--will you run one of those on me. Seldom did amount of insurance ever enter the picture--all premiums were based on amount per child.
They won-their children won-I won--and the feds got hosed--a happy ending
