October 2009
4% of Americans report making changes to their personal life insurance coverage as a result of the economy. Of those who made changes, 42% increased, 29% decreased and 17% eliminated coverage.
Source: First Command Financial Behaviors Index survey, Aug. 2009
24% Drop in the number of Americans with a net worth of at least $30 million in 2008.
Source: CapGemini and Merrill Lynch Wealth Management
18% Drop of Americans’ net worth in 2008.
Source: RDQ Economics
“As soon as I sign this bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it most.”
— President Barack Obama, during his speech to Congress on Sept. 9
“It’s time to start over on a common-sense, bipartisan plan focused on lowering the cost of health care while improving quality… Replacing your family’s current health care with government-run health care is not the answer.”
— Rep. Charles Boustany, R-La., in the Republican response to Obama’s speech
From the Archives: October 1962
Editor’s note: The following three excerpts are from the October 1962 issue of Life Insurance Selling.
People Who Taught Me About Life Insurance
By Roy F. Peters, Neighbors of Woodcraft, Portland, Ore.
I learned that life insurance is time insurance. A man will discharge his obligations and carry out his plans, pay off his mortgage, clothe his wife, see his children through college — if only he is given time enough. A man buys life insurance because it gives him the dollar equivalent of the time he needs. I learned that if a man is 35 years old he has 30 years to work until he reaches retirement age — and if his income is $10,000 a year, he can expect to earn $300,000 in his remaining earning years. Three hundred thousand dollars is the capitalized value of his earning power. Even if we forget all emotionalism — forget about [that man] as a father and husband but think only in terms of dollars and cents — if a man dies at age 35 with that $300,000 uncollected, the dollar loss is just as great as though a $300,000 building had burned to the ground uninsured.
What’s Going On in the Life Insurance Business: Your Wife Can Help
By Richard C. Budlong, CLU, Editor
If you call on women prospects, why not use your wife as a sounding board to determine the appeal your sales talk has to women? She can probably give you some good pointers on areas where you’re weak.
Methods That Have Sold an App a Day Since April, 1961
By Hazel Kohring, General American Life Insurance Company, St. Louis
Here is a “prank” that turned into a sale. Early this year a young fellow was transferred to his company’s St. Louis office. He rented a room with two other single fellows who are my policyholders. This young man was lonesome and just a little girl-crazy, and this was amusing to my policyholders. Since they worked at the same company, the newcomer asked them about his group insurance benefits. They suggested that he call “Hazel,” because she was their insurance adviser.
His curiosity was aroused and he asked questions about “Hazel.” The other fellows decided to have a little fun. They said, “She is attractive, dresses well, and drives a new Ford.” So he called me on the phone, introduced himself and asked me if I would explain his group benefits. I invited him to have lunch with me the following Tuesday, and he accepted.
…He walked to the car all smiles, but when he got in and saw me, his face dropped… He told me his age, and I said, “My son is your age.”
…He realized then the other boys had played a joke on him. We went to lunch. He got a date with the waitress, and I got an app for $5,000. He now calls me regularly to give me prospects.