This is a common refrain that is often said regarding financial advice and how various products and concepts may or may not apply to individual clients. It's also what most insurance agents and financial advisors say to each other to avoid their posts or ideas to be interpreted as "everyone should be doing this."
Whether a product or a contract applies is often based on a NEEDS basis to solve for a problem, not necessarily a WANTS basis.
What's the difference? Let's take an annuity as an example.
If a given client has a pension and social security (both are examples of annuities for lifetime income) and let's assume that those cover their living expenses.
Does that client NEED an annuity for their other investments or retirement savings? Maybe not! Would that client WANT or LIKE to have an annuity to guarantee additional income or principal protection with indexed interest? They just might! That would be more of a PREFERENCE on how they'd prefer to structure their financial affairs. What about permanent cash value life insurance? Is it for everyone? Yes... and no. First, it's for those who can qualify to get it. You have to qualify for an offer for insurance coverage. Those in poor health - whether it's your own fault or not - won't be eligible. (But that doesn't necessarily mean that they can't enjoy the benefits of a life insurance policy. It just won't be on their own insurability.)
Second, it's a phrase to help lessen the pressure and heighten the 'professionalism' that they don't recommend this to everyone. For those who are in the 'recommendation' business, I guess that's helpful. I'm not in the 'recommendation' business. I help my prospects and clients understand the choices of the wealth-building decisions they've made and understand their choices and consequences of those choices going forward. Some may believe that just makes me a salesperson. That's one interpretation of my work.
Let me rephrase the question:
What about permanent cash value life insurance and the tax code.
Is THAT for everyone?
YES! Everyone should learn what is possible for using and implementing cash value life insurance in their financial lives and how it interacts with the tax code. However... that doesn't mean everyone will understand it. I have a meme with a great phrase that I sometimes use on social media:
"Warning: I can explain it to you, but I can't understand it for you."
In Bryan Bloom, CPA's book "Confessions of a CPA: The Capital Equivalent Value of Life Insurance", he eloquently says "Those who get it, do it."
Those who don't get it... it's not for you.
If you ask me: "Is this for everyone?" My answer is: "It's for everyone who gets it and wants it."
If someone doesn't get it... but wants to, I will help you along the way. Please don't make a buying decision and funding decision until you get it. Get a convertible term policy in the meantime so you can preserve your insurability and can convert the policy when you're ready.
If someone just wants to argue with me... no problem. You win. It's not for you.
And I'm okay with that.
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