In 1965, AL Williams died of a heart attack. He had a whole life policy, but the rest weakened the Williams clan. This made an impression on his son, Art L. Williams, Jr., whose cousin later introduced him to the concept of life insurance, which at the time was relatively unknown and provided more at face value at lower prices.
Due to the financial hardships of his family, Art began his life as an embassy with almost religious zeal. Using the phrase “take the term and make a difference,” he briefly explained BTI, set up a new company for the concept, had 200k agents under his umbrella, and the rest is history.
A study published in the May 2015 issue of the Journal of Financial Service Professionals nearly 40 years later shows that Williams’ vast experience has led to unintended consequences for families. “People don’t take time and don’t make a difference,” said David F. Babbel, co-author of the study. “Most likely, they rent the term, cancel, and spend the difference,” and many families are left uninsured instead of simply insured when a loved one passes away.
Even a small fraction of people who fully follow the recommendations of the art and make a difference can invest emotionally in the market by selling high and cheap, or receive investments that are managed without realizing the potential impact of related payments on the nest egg. People who think that they are playing it safe by allocating more than 401k from the amount that the employer is eligible for, think that if the management fee is generally 3%, they will have to return 3% per year. principle.
If we consider that everyone who buys the term invests the difference wisely, the whole life offers advantages that BTID does not. Although the health of all life insured has declined to the point where they can no longer afford the new policy, it is locked in uninsured, allowing them to receive additional coverage with accumulated cash value. In addition, they can borrow in cash, convert into guaranteed income, or make tax-free distributions.
Chris Blunt, executive vice president of New York Life, noted the value of BTID for investment companies. they know. management. “He also stressed that there is no need to decide between term and permanent life insurance. Young families can get both, and as their income increases, they can turn the term into a lifetime.
Art Williams ’legacy consists of overestimated only term options and, like Mr. Blunt’s mentioned Wall Streeters, a very reduced pool of agents who push only one product and openly devalue every option available for their prospects, called cash value insurance. “waste value” and “terrible product” and show BTID as the only solution for everyone. A 40-year view of how to sell life insurance described in this study does not support these claims. American families deserve more in terms of both choice and advice.