Have you ever run into a competitor who proposed a Section 419 plan against you?
In comparison to an ordinary life proposal, a Section 419 life proposal on one life will look very good. After all, the premium for the Section 419 plan is deductible. What else could you need to know?
The answer is, “Plenty.”
Not that the 419 plan is better or worse than a straight life case. It is just different.
What Your Peers Are Reading
The question the smart advisor should be asking is not whether a straight life proposal or a Section 419 plan is better or worse. Rather, the starting point in all cases, no matter what, is simply this: What is the need the proposed plan is addressing?
Think about that. Some agents, when they call here on the phone, will talk about whatever it is that they want to sell, but they don’t talk about why. Our response: If you know why you are making a certain proposal, then you have to know what the need is that you are trying to satisfy. This will lead to the solution.
Different needs suggest different solutions. This is so, whether assessing insurance needs or any other.
For instance, in helping to develop advanced sales software for a client some years ago, we listed identified factors that the agent had to consider before figuring out a solution for a client. The first question was, “What is the need? Is it survivor income, retirement planning or business indemnification?”