AUG 30, 2016 | BY GREGORY E. SCHWABE
Here's how to reach some of the prospects you may not have considered
If your prospecting is mainly with the age 55-80 group, you know it’s not what it was even a few years ago. “Almost tapped out” is the way some advisors are describing it.
If your practice is feeling that pain, there’s a way to reach a broader, motivated and largely untapped audience: Consumers age 36-55.
You can do it with Indexed Universal Life (IUL) insurance policies. What grabs the attention of this age group is the concept of a “tax-free retirement.”
Unlike IRAs and other qualified retirement accounts, there are few cap limits on IUL contributions. Essentially, this means your clients can invest as much as they want into IUL savings vehicles.
These accounts not only help them hedge any risks associated with their retirement savings; they also offer your clients the potential of having tax-free distributions in retirement. The higher contributions are not only wonderful news for your clients, but you can also benefit from a greater earning potential based on the regular and automatic deposits they make to these accounts.
IUL opens up more sales opportunitiesAs you know, IUL is experiencing double-digit growth in the insurance and financial services industry. Continue reading to find out why.
The growth that these types of policies are experiencing is so significant, you can be sure that if you’re not selling IUL, the competition is out there getting the business.
Here are some of the ways you could be pitching IUL to new prospects:
Even at a lower rate of return, the values are far better than nearly all GULs on the market. Would a client trade the handcuffs that most GULs come with for a few less years of guarantees and the future flexibility than an IUL offers? It has been said this product offers “optionality,” the flexibility of deciding how to use it in the future without having to make any decisions today.
Continue reading to learn by many advisors now prefer IUL over mutual funds.
Why do accountants and advisors often prefer IUL?Here's why:
It’s easy to understand why IUL is setting sales records, particularly with 36-55 year old prospects. They’re motivated consumers who take retirement seriously and want to do all they can to maximize their assets. While IUL may not fit every prospect, the opportunities are enormous.
BY ALLISON BELL
A team at the National Association of Insurance Commissioners is working on an update of the standard Life Insurance Buyer's Guide.
The NAIC's Life Insurance Buyer's Guide Working Group held one conference call meeting on the topic earlier this month and scheduled a second conference call meeting for Feb. 7.
The group has posted an example of a life insurance calculator on its section of the NAIC's website, a consumer guide prepared by the American Council of Life Insurers, and one regulator's proposed revision of the existing NAIC guide.
Related: Life buyer's guides are a compliance maze
The NAIC is a Kansas City, Missouri-based group for state insurance regulators. It has no direct authority to change state insurance regulations and procedures, but states can choose to use NAIC models as the basis for creating their own laws, regulations, consumer publications and technical guidance materials.
Regulators have been talking about updating the buyer's guide at NAIC meetings for months.
In April, for example, participants in a Life Insurance and Annuities Committee session at an in-person NAIC meeting in New Orleans said the American Academy of Actuaries wanted to see the NAIC rewrite the guide. The ACLI told the committee it would not necessarily mind seeing the NAIC rewrite the guide, according to the meeting minutes.
Some regulators and consumer group reps have talked about wanting to update the guide to modernize it and make it more useful to consumers.
Birny Birnbaum, a consumer rep with the Center for Economic Justice, said he would like to see the guide contain more plan-specific information.
A deferred annuity buyer’s guide roundup
Nebraska commissioner to lead NAIC life committee