Advisor Today - July/August 2016 - (Page 15)

PRODUCT SPOTLIGHT LIFE INSURANCE By Brenton Harrison Positioning Whole Life for Success Paying attention to what we say is as important as knowing the products we offer. L ast year, I made MDRT for the first year as a full qualifier. When I got to the MDRT meeting, I wanted to focus on a product I felt could change my practice if I knew how to better present its value to my prospects: permanent life insurance. My target market, Millennial physicians, is full of high-income earners, but with little wealth. Not only that, but many of them are single with no children. While I felt permanent insurance was an excellent tool for them, it was hard to get them to see its value. I went to an amazing session on permanent life insurance by an advisor from Seattle who told us that positioning permanent life insurance with your prospects is as much about the words you use as it is about the product itself. I was enthralled, and after listening to how the speaker uncovered the value of permanent insurance, I was forced to reevaluate some of the words I was using, which were holding me back in my own practice: * Loans against, not loans from: Many advisors discuss the benefits of using loans to tap into a policy's cash value. What they don't talk about is the money left in the policy. If you tell prospects that they can take loans from their cash value, they will likely draw the conclusion that if you have $100,000 in cash value and take a $50,000 loan, you have $50,000 in remaining cash value. Explaining that you take loans against your cash value, using it as collateral, allows them to see that in our example, they would receive their $50,000 loan and still have $100,000 of cash value All of the sentences used in these examples are conversation starters. earning a rate of return! This subtle change shows them the difference between life insurance and their other assets, and gives them a better idea of the role it can play in a financial portfolio. * A cap, a floor and a contractual guarantee (index universal life): "Mr. or Mrs. Prospect, in this policy, your cash value tracks and mirrors the returns of an index. The company will cap your returns at x percent, but they also establish a floor so they will not fall below a certain percent. Would you feel comfortable in having funds that are contractually guaranteed not to fall below a certain point?" Once the prospects are comfortable, we can talk about which index we're tracking, what the cap and the floors are for different companies, and even how much coverage is appropriate. * The decision has been made: "Mr. or Mrs. Prospect, we use permanent insurance because it has features that you've already decided are important to you. Do you like the fact that your savings account has no annual contribution limits (yes)? Is it nice that taxes on your 401(k) are deferred (sure)? With your Roth IRA, isn't it cool that tax-advantaged withdrawals are available (absolutely)? And your brokerage account, do you want to be able to access it before age 59½? We just listed four separate accounts in which you may be investing to access those benefits. If there were a tool that offered all of them in one place, how much money would you contribute to it each year?" All of these examples are conversation starters. They don't take the place of a thorough explanation of permanent life insurance, but your prospects will give you their attention so that they listen with an open mind. We often blame our prospects for not taking advantage of strategies we know are appropriate. But when we look at the way we position these tools, we may find that we are the biggest obstacles to their taking action. Paying attention to the words we use is as important as knowing the products we're offering, and a thorough review of both may make all the difference in your practice. Brenton Harrison is a financial advisor with Henderson Financial Group in Brentwood, Tennessee. Contact him at, or at 615-386-9141. (The information presented is not intended as tax, legal or financial advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek such advice from your professional advisors. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.) July/August 2016 | ADVISOR TODAY 15

Table of Contents for the Digital Edition of Advisor Today - July/August 2016

From the Editor
A Question of Ethics: Reflections on the Dol Fiduciary Rule
Getting the Wealthy Investor to Hire You
Positioning Whole Life for Success
Rewarding Clients for Engaging in Healthy Activities
Feel the Heat: Sizzling Strategies for Boosting Worksite Sales
The Challenges of Writing Business Insurance
A Lifetime of Success
Safeguarding Your Business Interests
NAIFA Presents Nominees for Election
What’s Behind Brand Magic?
Making an Effective Call Back
A Story for All Your Clients
Ideas to Expand Your Practice
Advertiser Index
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Advisor Today - July/August 2016