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Broaching a traditional life product with a client? Here are some talking points:

The insurer takes the risk. “I dont focus on the minimum guarantees in whole life or variable products with guarantees,” says Richard L. Miller of T&M Financial Inc., Topeka, Kan., “because the odds of the products performing at guaranteed minimum levels is astronomically low. The risk taken with invested cash is the key. I point out that money in a WL is invested with the insurer, and the cash value never goes down, no matter what happens in the market.”

Its a death benefit product. “I dont promote WL as an investment or something competitive with investment-driven products,” says Charles Spera of New York Life in Baton Rouge, La. “Its a product where the client buys the death benefit. By contrast, with VUL, the client rents the death benefiti.e., its there only if the products investment strategy holds.”

WL is for clients with lower risk tolerance. If the client has a long-term need but a lower risk tolerance, “I look to offering universal life with a guaranteed death benefit,” says Stevan Cohen of Lincoln Financial Distributors, Manhattan, New York.

Here are the recommendations of our life experts. If youre new to life sales, let the client know youre teaming up with pros, suggest experts. Many registered reps at wirehouses do not yet have much life sales experience, notes Cohen, “so rely on the expertise and access to multiple life products of your life wholesalers.”


Reproduced from National Underwriter Life & Health/Financial Services Edition, July 20, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.


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