Most of the time, it is probably because people just don’t know about it!
Life insurance agents need to know how to properly set up a policy to make the IBC work most effectively.
Agents also need to be willing to set the policies up properly. High cash value life insurance policies will end up having more money going into cash and less going into insurance premiums. Agents get much higher commissions on money going into the premiums. So agents need to be willing to “give up” a higher initial commission in order to design a policy that will give the client more cash up front.
This might not initially sound lucrative to agents who think they have to do some more work explaining how this concept works to clients and then get a significantly smaller commission from each case. However, putting the needs and interests of clients first is not only doing the right thing, but also generating quality business and clients who will be more willing to trust the agent and stay with them for the life of the policies.
Similar to many people simply not knowing about the concept, there are those who do, but have not been educated on it and how to use it properly and effectively.