insurance
When it comes to insurance agents, however, just about every doctor is going to need to buy some policies through an independent insurance agent several times during life.
Without serious structural and legal changes (you’re basically not legally allowed to buy a life insurance policy or buy a disability insurance policy without some agent somewhere getting a commission on it) that fact isn’t going to change any time soon. However, there are a lot of insurance agents out there doing a serious disservice to their clients.
Figure out what you want insurance to do if you die (pay off the mortgage, start a college fund, provide for spouse from now until death at a 3-4% withdrawal rate), add it all up, and round up to the nearest million.
There should only be a few agents in any metropolitan area who become experts in it and then sell this stuff and you can just refer the rare client who needs it to them. Otherwise, you’re going to get to the end of your career, realize what you’ve done, and be embarrassed about your life’s work. Sell people the life insurance policy they need the first time.
What the parents are suckered into buying is a $50-100K whole life policy, which is totally inadequate as compared to that kid’s future adult insurance needs. And this nonsense about saving for college in a whole life policy is even dumber. These tiny policies are lucky to break even in the 18 years you have to save for college. If you’re buying life insurance from the same company you buy baby food from, you’re probably doing it wrong.
Being an insurance agent is a noble career, all by itself. You are providing for widows, widowers, and orphans. You are allowing people to take risks with their lives that they otherwise would not be able to take, benefiting them in the long run and boosting the economy.
Long term care insurance has issues. It really isn’t ready for primetime. That said, a reasonable case can still be made for it for a certain segment of society. That segment is for couples with a six-figure portfolio.
If you’re not good enough to make a living as an independent agent, you probably don’t belong in the insurance business anyway, so do the rest of the agents in the world a favor and get out so they can make a decent living.