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Americans Don’t Know Who to Trust on Financial Advice

Friday, October 11, 2013

New survey released earlier this month confirms that nothing has changed in 2 years. A survey in 2011 and this survey both have same results - 48% say that they don’t know who to trust for financial advice1.

The new survey also says that 46% say that more than ever they need a trusted place to go to for advice and 58% would rather get it from a single point of contact.

It is not surprising that almost half those polled do not have trust in the advice or the adviser. There has been little to no progress on implementing anything that would raise the level of trust, no fiduciary standards have been implemented, no mandatory disclosures have been required including any conflicts of interest or compensation disclosures. It does not look like the financial industry has moved any closer to achieving greater transparency, or changed any of the prevailing sales and marketing practices that would install greater trust from the population.

Trust is best built when the leap of faith between what is known and what is unknown is as small as possible. Clients looking for trusted advisors as the survey indicates want all their information from one source. Most advisors say that they work in the client’s best interest, but few actually prove it with independent research. Whether the advisor is a CPA, tax attorney, wealth manager insurance agent or trust officer, advisors need information about the pricing, performance and suitability of their client’s life insurance. Putting the client first involves due diligence and reviews every year. A simple and easy way to review their life insurance policies is to run a Veralytic research report every year. Veralytic reports are derived from the industry’s largest database 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.

As such, if you are a CPA, tax attorney, wealth manager or trust officer, use Veralytic research to demonstrate to your clients that you are taking care of them. If you are an independent life insurance broker, use Veralytic to BOTH demonstrate that you are genuinely interested in serving the best-interest of the client AND eliminate competition in advance with greater market intelligence.

Veralytic is simply the fastest, easiest, and most 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.


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