Life INSURANCE AGENT TRAINING: Different TYPES OF LIFE INSURANCE Products? (Tips for Beginners)

do you ever get confused of the

different types of life insurance that

are out there

stay with me because today i'm going to

break them down and show you the

difference between each

hi my name is jeremy smith and over the

better part of the last 16 years i've

been an agent

a manager an owner operator of my own

brokerage and for the last seven years

i've been a business coach

traveling the country helping agents and

agency owners grow their practice

stay with me because i'm going to try

and help you grow yours if you've been

on youtube before then you know

the game please like comment hit

subscribe so welcome to life insurance

101.

there's three main types of life

insurance term

whole life and universal life i'm gonna

i'm gonna break down each one of these

three

let's start with term because it's it's

the easiest to understand

term is a life insurance policy that has

a specific premium for a specific

death benefit for a specific set of time

of all the three insurance options out

there term is the cheapest insurance

there is

it normally goes in variations but

normally it's

10 20 or 30 year terms the longer you

have

uh the term the more expensive the

premium is going to be

the reason i say it's a lot of times an

insurance policy bought by younger

people

is because once you get older let's say

you're maybe 55 years old

that's probably about the the latest

you're ever going to be able to buy a

30-year term

insurance policy for you most likely 20

years is probably the most at that point

you get up to 60 65 years old

the most you may be able to buy at that

point might might be a 10 or a 15-year

term

so the older we get the less our options

are and therefore that's why a lot of

times term is a policy

for younger people it's obviously the

cheapest policy and life insurance

policy you can buy as well

let me move on and talk to you about the

second type of insurance

a whole life policy is a permanent

insurance

and typically people buy whole life

policies for one of two reasons

number one is to leave money

to their beneficiaries or their estate

it's a policy that should always be

there and never run out if it's

written correctly unfortunately too many

times in my career have i seen policies

that are not written correctly

one of the things about a whole like

policy that's supposed to do is the cash

value is supposed to build

in your accumulation stage when you're

making premium payments

and the cash value is supposed to build

up enough that when you get later in

life

the cash value can will pay the premiums

on that policy for the rest of your life

so you don't have to make those premium

payments

when you get older and you're not

working and the income is lower

unfortunately what i see all the time is

that insurance agents in the past have

written these policies

and they haven't they haven't

established enough premium

for the client in the beginning stages

of the life insurance policy

so therefore not enough cash value is

built up

through their later years in life and

therefore the policy explodes

in their late 80s before a lot of people

are passing away or dying these days

and so then what happens in that

scenario is they've either got to make

some huge premium payment

to keep the policy alive or the whole

thing collapses and they made all those

premium payments for nothing

this however though is a huge

opportunity for you as an agent because

there is i'm telling you there's

so many policies that are out there

right now that are going to blow up

and so you as an agent just getting the

basic information

uh of these policies from your clients

what their premium is what their death

benefit is

how much cash value do they have in the

policy and taking that to your life

marketer

you can be a hero to that client and and

and replace that life insurance policy

and write it properly so it doesn't blow

up in their face

and the best thing about that is you

don't have to talk them into buying it

they already have it

your job as an insurance agent is just

to find the problems

and give them the solutions the other

reason people buy whole life insurance

policies

is to build cash value a lot of younger

people

do this they'll build cash value make

premium payments and build the cash

value through their accumulation stage

so that when they get later in life they

can use that cash value themselves

okay the it's a theory called the be

your own banker

theory or be your own banker system it's

something i'll i'm going to do a whole

video just on that on that theory and

that system

the logic though is this the logic is is

that you build that cash value up in

your life insurance policy

and you borrow from it instead of

borrowing from the bank

and therefore paying yourself interest

instead of the bank interest

so the third type of insurance is called

universal life insurance

i'm a big fan of universal life

insurance and in mainly just because of

the flexibility that this policy allows

it allows you as the agent to manipulate

the cash value or the death benefit or

the premium

in order to make the goals of the client

happen for example

if the goal of your client is to leave

as much money behind to

their kids or grandkids or their church

or their charities

then what you can do in a universal life

insurance policy is is you can actually

build it

to where the cash value builds super

slow

super low so the death benefit can be at

a max

okay you can you can fluctuate those uh

those different uh

buttons kind of like the equalizer on

your stereo

just the opposite i personally have a

universal light policy and the reason

isn't

so that i can leave a lot of money to my

kids or grandkids in it

it's so that i can use kind of like in

the whole life policy we talked about so

i can use the cash value of it

and borrow that money tax-free

interest-free payback myself

so my universal life policy i've got a

two hundred thousand dollar death

benefit

a hundred dollar a month premium but

what i do is i do what they call super

funding it

so i pay 500 a month into that premium

therefore not my death benefit but my

cash value is growing

super fast therefore once again i can

use that cash value when i need to

to purchase something down the road like

a car rather than go in the bank to

purchase that car

again the big value to me in a universal

light policy is the ability

to maneuver and manipulate those

different those different levers

the flexibility of a universal light

policy is the true value of it

so if you watched some of my earlier

videos a couple different videos i

talked about

my agencies uh back in the day when i

had an agency

we never sold a lot of life insurance

what we did do though is we replaced a

lot of life insurance

and if you are really new to life

insurance or you're new to this channel

and you haven't watched some of my

earlier videos

i want to i want to teach you something

that's that's super vital for you as an

agent to understand

it used to be back in the 1950s 1960s

when we bought a life insurance policy

it was based on about four things it was

based on her age

it was based on her health it was based

on how much coverage we wanted

and it was based on a mortality table or

how long were expected to live

well when you buy life insurance policy

today it's still based upon those same

things

the difference though is that just these

last few years

has the insurance companies finally

updated their mortality tables

to represent that we're living longer

therefore stretching out

the cost of insurance lowering the cost

of insurance

if you find a life insurance policy i

don't care if it's a term a whole life

or a universal life

you find in a life insurance policy

that's older than say five or six years

old

there's a really good chance that as

long as they're they're still

still have their health they can still

qualify for a new life insurance policy

that you can replace that policy and

give them more death benefit

or lower their premiums improve their

policy one way or another

just with the stroke of a pen and it's

all because

these mortality tables have finally been

updated by the insurance companies to

represent that we're living longer

so in your practice i don't know what

you do whether you sell medicare

supplements or final expense

if you sell annuities if you sell

everything hopefully you're using a fact

finder

but in your in your appointments with

your clients if you just simply ask the

question do you have life insurance

and then find out their death benefit

their premium

their cash value and maybe their term

and take that information back to your

marketer

you will find that a good percentage of

your clients will give that information

to you very easily

if you identify a problem it'll be the

easiest lay down sale you ever had and

you'll be a hero to your client

i look forward to seeing our next video

i'm going to break down on our next

video

the last type of insurance that i think

is the most overlooked product that we

as insurance agents in the united states

miss and don't offer