Financial Recovery: Appendix II, page ii

ILLOGICAL AND/OR UNTRUE

  1. Term runs out; you won't have it when you need it most.
  2. Term costs too much; cash value insurance is cheaper.
  3. If term is so good, why is most insurance sold with cash values?
  4. The stock market may crash; you are taking large risks.
  5. Trust me; I'm just looking out for your best interest.


Even an informed consumer, when dealing with cash value
insurance salesmen, must cope with powerful sales tactics.


THE SOLUTIONS:

  1. Demand that they put their recommendations in writing and personally sign them.
  2. Schedule a meeting in the presence of your attorney or accountant.
  3. If your cash value agent is a relative, or a neighbor, or a personal friend, and you wish to stay on good terms, fine. There are many people in our lives to whom we do not go for financial advice. Keep his friendship if you wish, but do not accept further financial advice from him.

    THE LEGALITY OF CHANGING LIFE INSURANCE POLICIES:

    There is no law against replacement. The laws permit a valid comparison between life insurance policies.

    THE MORALITY OF CHANGING LIFE INSURANCE POLICIES:

    Many cash value life insurance salesmen are trained to make changing policies a moral issue by saying it is unethical. It is not a moral, but rather a practical financial issue.

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