A “Rebellion” Against Whole Life Insurance
With all the Suze Orman’s and Dave Ramsey’s of the world touting the “buy term and invest the rest” strategy, you’d probably think it’s rare that people buy whole life insurance anymore.
You’d be dead wrong!
In fact, according to a 2014 “Life Insurers Fact Book” put out by the American Council of Life Insurers, whole life outsells term nearly 2 to 1.
Whole life insurance is a polarizing issue in the personal finance space.
Many advisers and even insurance agents recommend against it. Some say that while whole life has its place, it should be used sparingly, and only when suitable for a client, who has means to pay for the coverage, and isn’t concerned about return.
One such insurance agent is Chris Huntley.
Chris Huntley of Huntley Wealth & Insurance Services in San Diego recently launched a “rebellion” against whole life Insurance. The Rebellion’s headquarters page can be found at: http://www.insuranceblogbychris.com/whole-life-insurance-rebellion/
The Rebellion is a movement to educate consumers about the risks associated with investing in whole life.
So what caused an agent to rebel against the sale of one life insurance product in particular – Whole Life Insurance?
“Whole life insurance is a product that is being oversold and wrongly sold,” says Huntley. “Americans need to know and be aware of the perils of this product. It is only a good option for a small minority of Americans, not for 2/3 of people buying life insurance.”
Mr. Huntley is calling upon all personal finance and insurance bloggers to join the rebellion. He wants all Americans to protect themselves through education.
“Nothing has worked up to this point.” Says Huntley. “Hundreds of financial advisers recommend term only, but Americans aren’t getting the message. We need a concentrated effort to educate the masses.”
Huntley claims that whole Life should only be sold to certain high income earners and for business purposes.
He says that it’s time to protect consumers from overzealous life insurance agents, and the life insurance industry needs action now.
Support for the Rebellion
So does this “movement” consist of nothing more than the ramblings of one insurance blogger?
Not at all.
In fact, the Rebellion has some serious backing already. Since going live on May 31st, over 25 insurance and personal finance bloggers have already mentioned and linked to the Rebellion.
These articles can be found at InsuranceLiteracy.org and PlantingMoneySeeds.com’s websites, the Rebellion’s two sponsors:
On top of that, Huntley says he’s been interviewed for Forbes, Nerd Wallet, and has interest from Nasdaq and Huffington Post to cover the Rebellion.
It appears the Rebellion is resonating with the personal finance community.
“Consumers need to learn how risky and overly expensive Whole life costs. Most consumers would be far better off buying Term insurance or other Permanent insurance products and investing the difference.” Says Huntley.
Yet, most life insurance agents are pressured or choose to promote and sell Whole Life insurance to the average low and middle income American. This is what has to stop, according to Huntley.
Many consumers don’t understand what they are buying, or the costs involved.
Among the problems with whole life insurance, Huntley cites the following as the most serious.
- Forced Contributions
- Low Investment Returns
- Heavy Up-Front Fees & Commissions
- Overly Expensive, and
- Too Confusing
But Huntley says his Rebellion is about a lot more than “hating on whole life.” He says whole life is not really the problem. It’s mostly the way it is sold.
That’s why the Rebellion page pushes for the signing of a new petition titled the “Insurance Consumer Bill of Rights.” The Bill seeks to revolutionize and change how the entire life insurance industry currently operates.
The purpose of “The Insurance Bill of Rights” is to create a universal standard for insurance agents by which to sell life insurance, one where the client’s needs are put first, one where the agent acts with a fiduciary interest for his or her client.
The Bill proposes the following rights for consumers:
- The Right to Have the Agent Act in Your Best Interest
- The Right to Receive Customized Coverage Appropriate to Your Needs
- The Right to Pay a Fair Premium
- The Right to Be Informed
- The Right to Full Disclosure and Updates
With enough support, the petition will be presented to the directors of the Consumer Financial Protection Bureau and the National Association of Insurance Commissioners.
By advocating the “Insurance Consumer Bill of Rights”, Mr Huntley believes this new code of ethics for life insurance will protect many Americans from unscrupulous insurance agents acting in their own interest instead of the consumer’s.
Learn all about this timely and revolutionary movement today at: http://www.insuranceblogbychris.com/whole-life-insurance-rebellion/