As advisors, we often look at clients solely through the eyes of an illustration. We assume what a client looks like today will continue into eternity, instead of realizing that life changes over time. One example of this has to do with clients being able to afford higher contributions to an indexed universal life insurance (IUL) policy in the future than what they can afford today.
The Tax Cuts and Jobs Act is in the books. It may be seen as a benefit to individuals as well as some business structures. It’s best to discuss with your clients how they can take advantage of the new changes.
The selling landscape has changed. Going door to door and cold calling to sell financial products is not as effective as it once was. So what should financial advisors and agents do to increase their sales?
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One of the most common questions I get from advisors is "How can I find more leads"? You need to first evaluate the lead generation methods you currently use and improve them, or select alternative ways to market your business.
Until 1982 no statutory rule existed that defined the characteristics of life insurance for federal tax purposes. However, in the early 1980s, Congress was motivated to act by the development of a new generation of Universal Life contracts because these new products provided significantly more cash-value build-up than was needed to support the death beneﬁt.
As more companies do away with defined benefit pension plans, the responsibility is left on individuals to ensure that they have enough income saved for retirement. The issue is many people don’t realize the importance of developing a financial strategy now or understand what needs to be done. Help your prospects and clients with a financial strategy that will help them not outlive their savings.
Many financial advisors I speak with believe that they can grow their business if they have more prospects to see. There’s truth to this. Without prospects to see, you are unemployed. If you don't have anybody to serve, then you're out of business. Unfortunately, many of those same advisors are poor at prospecting and are struggling to get more clients. Often it comes down to lack of direction, focus, and commitment to prospecting efforts.
Once you have made the decision to sell a cash-value policy to cover both the death benefit need as well as providing the opportunity to generate cash values for future distribution, the next question to ask is, "Which cash value policy should you sell? Whole Life, Universal Life, Variable Life or Indexed Universal Life?" The answer is, "It depends on what the client needs."
One of the most common risks in retirement is order of returns risk (also known as: sequence of returns risk). It is well known within the financial services industry that investing in marketable securities exposes clients to this risk. However, do your clients know that many indexed products are not immune from order of returns risk?
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This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.