Several persons would have encountered life insurance agents, or even insurers, who act as though term insurance does not exist. It might seem strange at first, since nearly every insurer sells such plans. One would think that they would like to market it as one of several options clients have. However, further examination reveals that agents have rational reasons for neglecting to mention this particular form of life cover. There are conscientious representatives out there who aim to inform clients and help them find the best solution for their needs. Even so, there seems to be a conspiracy amongst most to push other forms of life cover. There are three primary reasons for this.
== Commission ==
In this age of information, many more persons are aware that agents receive higher commissions on the sale of permanent insurance. The increase can be as much as 15% – 50%. It is more lucrative for insurance sales representatives to sell permanent plans because they get more money in two ways. In the first instance, the premiums are far higher. The difference between a term life premium and universal life/ whole life premium can realistically be a few hundred dollars. In the second instance, the commission rate is higher. Therefore, the representative earns a higher commission rate on more money – a win-win situation.
== Indoctrination ==
Not all insurance sales representatives fit the profile of the greedy, conniving agent. Some of them genuinely believe that term life insurance is simply not good enough, or for impoverished folks only. They believe this because they were trained to believe this and hardly questioned what they learned or assessed it critically. Term life plans are not a waste of time or money as some agents might suggest. To the contrary, they can save anyone money if used sensibly. Agents extol the virtues of cash-value insurance because they genuinely believe that they are helping financially undisciplined clients save money, provide for their estate and protect their families.
== Client preferences ==
Would you believe that some agents avoid discussing term insurance because some clients feel it is a waste of time? It happens. Some persons believe that since they are not “getting anything back” from it. Even the lure of paying much less does not appeal to them. As far as they see it, they are putting out money for term life and getting nothing if they do not “use it.” Insurance agents, who are more than happy to give such clients what they want in such situations, readily accept such unsophisticated thinking. After all, everybody wins in that situation.