Professionals Don't Use Malicious Language

I've been paying a bit more attention to the use of this when someone on TikTok decided to create a short TikTok on someone I know calling him a 'fraud'. That's a serious allegation and I called him out about it. The truth is that they had a disagreement and so he 'blasted' him. (That TikTok has been removed.)

It seems that, in the attempt to get attention on social media these days, using inflammatory or malicious language is the norm. I see it more often regarding IUL (and while I certainly share some concerns about it, I've never called it a 'rip-off').

There are some policies out there that are not the best value for the consumer. That is a given.

But that doesn't mean they are scams.

Words have meaning. A scam implies fraudulent. It implies that it won't do what it was represented to do.

My friend and podcast co-host Michael Moffat gives an example regarding comparing a simplified term policy to a fully-underwritten term policy. The premium for the simplified term was TWICE the amount of the fully underwritten term for no additional benefit (other than skipping the medical exam).

Now, is that a scam? No... because as long as the application was completed properly and represented the insured's accurate medical condition, it will pay out a death benefit.

Is that policy the best value for the dollar? Considering that it doesn't build any cash values or any other additional benefits? No.

It's my opinion that professionals never use such language. In fact, it's in the insurance code that agents are not to make maliciously critical remarks (i.e. fake, fraud, scam, rip-off).

That doesn't mean that agents don't have passion behind what they do. The best ones do! It doesn't mean that agents cannot have their own opinions!

I'll use Primerica as an example. This is a unique one because Primerica is not only an insurance field force, but they issue their own policies.

I'm often critical of this company as far as their agent training and their often "one-size-fits-all" advice.

I'm always careful to say that Primerica is a well rated insurance company that issues policies. They will pay a death benefit. I say this because it's true and I don't want anyone to cancel a policy at the wrong time.

Mr. Miyagi's quote "No such thing as bad student, only bad teacher" comes to mind. But even that's a bit too much. I tend to believe that agents are informed or uninformed. That agents are either intentional or unintentional (possibly ignorant).

This is why the insurance industry is still an industry and not necessarily a profession.

In fact, I believe it USED to be a profession at one time, but may have de-evolved into an industry.

When Solomon Huebner created the CLU designation back nearly 100 years ago, it was in the attempt to elevate the life insurance agent to a true professional on par with CPAs. At the time, the CLU was a very intensive curriculum including accounting, economics, estate planning, tax planning, life insurance applications, and much more. I actually have sample exam questions from the original exam - it was not multiple choice. It was essay answers. (When I saw that, I knew I would've failed it back then.)

I believe Huebner was successful in doing this... for a time.

There are so many organizations that tend to treat life insurance (and other kinds of insurance) as far more of a selling game (like selling knives) than being a professional. Casualness breeds casualties... and most often, it is the consumer that pays the price for this, either in paying too much for their coverage (like simplified issue vs a medical exam policy), policies that they just don't need, or improper implementation of a quality policy.

The agent makes the difference.

Agent competency and ethics makes a HUGE difference.

Yet, professional agents won't use inflammatory language to get your attention. We may want to pound a pulpit like for a Sunday sermon, but more often than not, we're more reserved and composed when we're in-person having a professional conversation.

I tend to notice that serious people tend to gravitate towards professional agents rather than loud agents. The louder the agent, well... they get plenty of attention and as the scripture says "verily, they have their reward."

And agents wonder why insurance agents have a bad image? Our own industry tends to create that and we all get painted with the same broad brush.

Meanwhile, consumers are not nearly as insured as previous generations. If they are looking for an agent, they don't know who they can trust to get such coverage.

/end rant