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Declare Your Independence

Wednesday, July 01, 2015

Independent Research…Independent Review… Declare yourself as an independent!

Research[1] shows that 3 out of 4 clients regard “independence” as important or somewhat important. It’s difficult for many clients to know who to trust, so it is more important than ever to be able to quickly and easily demonstrate that you are independent and clearly doing what is best for the client.  Of course, there is no more compelling way to declare your independence than through the use of independent, 3rd-party research. 

Trust is best built when the leap of faith between what is known and what is unknown is as small as possible. Few clients know what they are actually paying for cost of insurance charges (COIs), fixed administrations expenses (FAEs), cash value based “wrap fees” (M&Es), and premium loads or what they are actually getting in the performance of invested assets underlying policy cash values. In addition, most financial advisors don’t know what their clients are paying or what they are getting.  Given findings from independent studies[2] indicate there can be as much as 80% difference between best-available rates and terms and poorly-priced products, the opportunity to bring reduced policy expenses and/or improved performance of invested assets underlying policy cash values can be both significant and meaningful today.

Declare yourself different from many financial advisors who are or who rely on agent/brokers who are still selling some limited number of products! The SEI survey indicates that while 87% of advisors believe achieving independence is business critical and 72% of clients believe it is important or somewhat important, they simply do not agree on the definition of independence. What do you believe “independence” means?

Veralytic is the industry’s largest database of pricing and performance data for life insurance products, and as such, adds independence and objectivity to any policy review. Adding Veralytic to your practice will help you open more opportunities, eliminate competition and accelerate the sales process by quickly and easily demonstrating your independence. 

Veralytic research is derived from various independent sources to include thousands of actual insurance company pricing representations for hundreds of different products and actual performance data for invested assets underlying policy cash value, and reveals the overall suitability of a given life insurance product relative its peer-group and based on 5 of the major factors of suitability as to 1) financial strength and claims-paying ability, 2) actual cost-competitiveness (i.e., measured separately from performance assumptions), 3) pricing stability, 4) cash value liquidity, and 5) actual historical performance of invested assets underlying policy cash values. 

 Use the Veralytic Reports to determine the appropriateness of pricing, the reasonableness of performance expectations for invested assets underlying policy cash values, and overall suitability for your (clients') policies based on the 5 factors of suitability.  Click here and get up to 3 Veralytic research reports under our NO-RISK trial subscription.



[1] www.seic.com\independenceUS

[2] Tillinghast Towers Perrin study referenced in the May 2003 issue of Trust & Estates, CASCO survey reported in the April 1999 issue of Trust & Estates magazine, and research from Veralytic database.

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