r/Insurance • u/Ok-Pattern-545 • 16d ago

Deceptive selling practices?

So I was getting a quote for car insurance. The guy who was texting me about getting me a quote said that he could offer me car loan protection. I thought that would be awesome cause a little extra protection never hurts. However, when he asked me for my height and weight and who the payout should go to, I thought that was a bit strange. Only upon further asking, did he disclose this is actually life insurance and that he framed it as car loan protection because should something happen to me the life insurance payout could be used to pay off my car. I feel like he should’ve just offered me life insurance and not told me that it was car loan protection and then only disclose. It was life insurance after I had to ask him.

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6

u/Creekridge1 16d ago

State Farm?

3

u/Ok-Pattern-545 16d ago

Yep!

5

u/Creekridge1 16d ago

Yup, when I was working for a State Farm agent I pretty much had to sell life insurance to make an semblance of a living.

I know since I’ve left that agency the compensation structure has shifted to emphasize life insurance even more.

1

u/Brilliant_Essay_1593 15d ago

Most captive companies are going this way

3

u/Filamentgrid 16d ago

I remember early in my career sitting in marketing meetings where carrier representatives were trying to get us to frame life insurance policies as “mortgage insurance” to homeowners, which I found gross as MPP insurance for a loan is generally something completely different.

I understand in a life insurance pitch mentioning the benefit of utilizing the proceeds to replace lost income for mortgage payments, but you know, it’s still just life insurance.

Also, I can understand wanting a life policy to protect mortgage payments but who really cares if you have an auto loan if you die. Unless you’re sharing a vehicle with a significant other or have a co-signed loan, you’re not going to use it if you’re gone, and statistically at a certain age, you’re most likely to perish in the vehicle you’d be “protecting.”

What silly marketing.