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Survey Finds Advisers Less than Successful with Life Insurance

Thursday, June 20, 2013

A recent survey found that more than half (52%) of financial advisors do not describe their efforts to provide life insurance and related life insurance-based advice to their clients as “successful” or “very successful.”

Among the 30% of advisors who do not regularly provide life insurance to their clients, almost half (49%) said “selling life insurance detracts attention away from their practice,” and nearly one out of five (17%) said they don’t sell it because “life insurance is too complicated.”

These findings are consistent with the previous 2012 survey, which showed that some financial professionals are finding that they can use outside specialists to help them advise their clients on the most effective and efficient life insurance products for each unique portfolio.

Life insurance is an integral component of the financial plans of your clients, yet it is often the last, largest and most neglected asset on their balance sheets and in their estates. Few know what they are being charged for cost of insurance charges (COIs), fixed administration expenses (FAEs), cash value-based “wrap fees” (e.g., VUL M&Es) and premium loads. These costs inside your clients’ life insurance policies vary by as much as 80% and if neither you nor they know what they are being charged, then they may be over-charged.

Veralytic can help you show your clients that you are taking care of them in ways that even most insurance agents or brokers cannot. Veralytic is the only patented, objective and rules-based research tool that goes beyond the simply comparing illustrations of hypothetical policy values that can be considered “misleading” and “improper” by both financial and insurance industry authorities. Veralytic’s independent research reports provide a facts-based solution that is both compliant with industry regulations and established case law. The Veralytic Research consists of several measures of policy suitability in an easy to read graphical overview, summarized by a simple star rating system that measures against five different categories of policy performance and provides the documentation that the inforce policy and/or product being recommended is competitive and suitable relative to the universe of peer-group product alternatives.

In addition, advisors that are FPA members get a discount on Veralytic subscription by clicking here.

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. Veralytic is accepted for independent client representation, strategic partner with Financial Planning Association (FPA), 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.

re: Survey Finds Advisers Less than Successful with Life Insurance

Friday, June 21, 2013 Hector May
good article,however not surprised. In my practice we use life insurance as an asset class. Our approach is never about the premium but about how it fits in the asset allocation of the client.In most cases the allocation to premium comes directly out of the client's brokerage account. We have found that when check does not have to be written there is no pain or objection
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