People tend to buy what they want and what they need. But no one wants to buy life insurance, but it is bought because it is necessary. MLM usually sells the latest and greatest idea, thing or concept. People will buy it hoping they can use the product as a visual aid to get others to make a similar purchase.
A huge difference with Life insurance is that you really can’t buy it, you can only apply to find out later if you’ve been approved. People are more likely to fill out an application for life insurance to see if they qualify in the hope that they can receive the protection. On the other hand, MLMs are all about buying the dream. But the dream is never real. In other words, no matter the product or service in MLM, it is never necessary. MLMs don’t contain anything you have to have. It’s all about the emotion that just wants more. The MLM sale is more about the imaginary hype than the reality of the experience.
We know we all die
In this world we all die. The only way to get out of here is to die. Reality says that when we die, someone will be left to mourn our death. Reality also says that we have to be buried and that comes at a cost. If we don’t prepare for the inevitable, it can create hardship for our relatives, interrupting the grieving period. Not applying for life insurance is the same as not caring about your family and what burdens may come without you.
MLM doesn’t have that kind of power. Cell phones, lotions, potions and pills, legal services, water filters, makeup, to name a few, are all sold as MLM products. It is true that if your car breaks down in the middle of the night, having a cell phone would be a great idea. If a judge tells you not to return to court without an attorney, it’s essential to have a legal plan. But when the need is gone, do we still keep the product? With life insurance, the need is only fulfilled once. The plan is designed to protect us on a daily basis, as no one can predict when their own death would occur.
The unexpected happens unsuspectingly
Death is always unexpected. As I wrote this, I saw on the news a week ago how a teenage boy makes the winning basket in a high school basketball game and drops dead minutes later. How sad, at a time when he, his family and friends should have been celebrating, they have unsuspectingly gone into mourning. Believe it or not Life insurance is not sold for that reason.
Life insurance policies are sold for what they don’t do for what they are. What do you think is most important to the family in the editorial preceding this paragraph? After the son’s death, I don’t think the parents thought, wow. I’m glad we have that life insurance policy. To be honest, I bet they didn’t think about the insurance at all. One thing Life Insurance does is take the worry out of unexpected situations. Peace of mind is when you have what you need when you need it. Life insurance can pay off a house so that a family can keep their house after the death of the breadwinner. Life insurance can fill a need that MLM cannot.
Life insurance should not be an MLM product
But what happens if a company tries to merge life insurance as an MLM product? The need disappears. The public perception of an MLM is that you buy the product to keep up with the latest trends. Life insurance is above that trendy thinking. It is part of a regulated industry that is highly recommended and respected by all financial authorities. Another difference is that to sell life insurance, you must study and pass a state-sponsored exam to get licensed. Although testing is not difficult, many are intimidated at the thought of taking an exam.
The best part about being in a licensed industry compared to the unlicensed area of the MLM players is that those who try to mislead or hurt others can be quickly removed and banned. This protects the industry and the individual efforts of those who really enjoy helping those in need.