












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 topup on some other moneymaking 

business
proposition that is paying the overhead. 

to chart 20 














