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Bring New Value to Year-End Planning for Clients

Friday, December 09, 2011

In the coming weeks, many advisors will be meeting with clients to collect information needed for year-end planning. Take the opportunity to ask if they know how much they are being charged for life insurance and/or how their invested assets underlying policy cash values are performing. Many clients have little or no idea what they are actually being charged for cost of insurance charges (COIs) and policy expenses, and/or what they are actually earning within their life insurance portfolio. 

Studies1 indicate the disparity between best-available rates and terms and poorly-priced products is as much as 40%. In other words, because so few know what they/their clients are actually being charged, some clients are being overcharged by as much as 40%.  If you don’t know what you(r clients) are being charged for cost of insurance charges (COIs), fixed administration expenses (FAEs), cash-value-based “wrap fees” (e.g., M&Es) and  premium loads then you/they don’t know if they are being over-charged. 

Herein lies the opportunity to add new value to year-end planning for clients without adding any more time to your already hectic year end schedule.  By collecting the necessary data now, you can revisit and bring new value and generate new potential business opportunities after the busy season.

Your clients hire you because they know and expect you take care of them. Following the 3 easy steps below, begin providing your client with the confidence that comes with knowing you are taking care of them and maximizing your planning for them:

  1. Collect an inforce illustration (if the client doesn’t have a recent one, which in itself is a red flag that they are not receiving the attention they need, click here to download and get the client to sign an Request for Illustration).
  2. Submit the inforce illustration to reports@veralytic.com for independent research on that policy.
  3. Take the Veralytic report back to the client and show them how their policy compares to industry benchmarks for appropriateness of pricing, the reasonableness of performance expectations for invested assets, underlying policy cash values, and overall suitability for your client's policies based on the 5 major factors of suitability. 

Veralytic is simply the fastest, easiest, and most credible, comprehensive and cost-effective way to independently verify to clients and their advisors whether or not the pricing and performance of existing or proposed life insurance is in their best interest.  Only Veralytic is accepted for independent client representation, endorsed by the New York Bankers Association (NYBA) and compliant with industry regulations and established case law. 

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 (client’s) policies based on the 5 factors of suitability.  Click here and get up to 3 Veralytic research reports under our NO-Risk trial subscription.

 

i Tillinghast Towers Perrin study referenced in the May 2003 issue of Trusts and Estates. 

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