Chart 19 to chart 20  
Put it all together on the same scale and you get a sense of where the money is in life insurance … what’s
required in a basic product design sense to have any real chance of making meaningful money out of the
risk of death.  (premiums $0.70, 4.22, 7.27, 9.35, 26, 118)  Note that if you can sell that endowment policy
then over the next 20 years it averages as good a pot of money as the impossible to sell single premium/no
cash value product.  Also note that to have the same potential to make money, you’ve got to sell 20 to 30
times as much term insurance as cash value whole life! (58/1.95 at age 46)(86/4.22 at peak age 62). 
Now that’s a little skewed because the lower premium means you’ll sell more insurance (ie more death
benefit per customer) if you’re selling term (maybe 4 or 5 times as much per .)  But that still means that
you’ll need to sell 5 or 6 customers term insurance to have the financial potential of cash value whole
life.  Anytime someone wants to talk about bancassurance, direct sales, term plus a mutual fund, or anything
similar, especially if they talk about “lower distribution costs” remember this chart and that requirement for
5 or 6 times as many customers, 20 to 30 times as much insurance coverage.  Will the “alternative”
distribution method have any hope of selling that many more customers that much more insurance?  Will
the distribution cost really be that much lower by the time the time it reaches that much higher a volume? 
Sometimes the answer will be yes.  But it will only be with incredibly effective, and ruthlessly efficient,
marketing … world class.   Or when the term insurance is just a top-up on some other money-making
business proposition that is paying the overhead. to chart 20