The
Most Affordable Marketing and Sales Training For Insurance Professionals...
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Sales Tips…
You Need To Communicate with Your Current Customers...
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Success Tips…How To Make People Thrilled To Hear From You... Whenever you come into contact with a friend, relative, prospect or customer, don't leave the conversation without contributing some information of value to them. Refer them to a good book you just read, tell them
about an interesting website you just discovered, offer them a
special recipe, etc. "Whatever the mind of man can conceive and believe, it can achieve." Napoleon Hill
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I don’t know about how you feel about the latest round of bad publicity we’ve been getting about our insurance products and services, but, I’m sick and tired of it. It’s just more of the same largely unjustified criticism we’ve been getting for years. I think most of you will agree that a large part of the criticism we are getting is just sensationalistic journalism. Controversy increases ratings and sells advertising space! And, it’s being initiated and pushed by our competition, who have lost a lot of their business to the sale of index annuities; FINRA who wants, and is trying to control every part of our business; and by certain public officials who are trying to get their names into the spotlight.
Now, I’m not saying that we don’t have a few greedy and/or ill informed agents, advisors, agencies and marketing organizations out there. Every industry has their bad apples, and we have our share.
However, you’ll notice that there isn’t a big exposé about the ‘abuse’ millions of seniors and baby boomers have received at the hands of investment advisers, who have largely ignored suitability requirements, and lost large portions of their client’s life savings in the stock market. Or, any large-scale criticism of the advertising hype concerning mutual funds, whose claims are grossly inflated, and are misleading consumers. And, there isn’t any mention of the exorbitant annual fees being routinely charged by mutual fund money managers, or the huge profits these brokerage houses are making.
Let’s set the record straight about the sale of index annuities. While there may be a few index annuity products that would seem to be abusive, with two tier payouts and very high surrender charges, they are not really what’s harming the consumers. The main problem is we have a few greedy and/or poorly trained insurance agents, financial planners and financial advisors in our industry, who are pushing products instead of helping people to find a solution to their financial concerns and problems. Insurance Companies, Independent Marketing Organizations, Agencies and others are spending too much time training their people on the technical aspects of these new index annuity products, and not enough time training these people on how to properly use these high surrender charge index annuity products to help consumers meet their long-term financial goals.
The truth is these new index annuity products are great for many consumers (young and old), when they are used properly. The high surrender charges of up to 20%, the media complains about on these new annuity products, are what allow the issuing company to be more aggressive with their investments. Thus, they are able to provide the consumer with an excellent opportunity to receive potentially much higher returns, without the risks to investment principal and fees associated with traditional stock market investments.
Remember, the insurance industry is the most highly regulated entity in the financial services industry. Each of these high surrender charge index annuity products were rigorously scrutinized, before the insurance regulators in each state approved them! The high surrender charges in these annuities are only a concern in very limited circumstances. If these products are used properly, the high surrender charge penalties will rarely be applied, and the consumer will not lose any of their hard earned savings.
Consider, it’s not like a mutual fund where consumers are paying up front loads, backend loads, plus fees of 1.5% to 3% every year during the entire life of the investment, whether they make money or not. And, where consumers can lose (and have lost) a lot of their savings when the market takes a downturn. And, it’s not like a managed investment account where people are paying $2,000 or more for a financial plan, and then a 1% - 2% management fee every year. These are all real costs (and up front losses) to the consumer.
And, let’s not forget about the numerous "Quantitative Analysis of Investor Behavior" studies conducted over the years by Dalbar Inc., the Washington-based Investment Company Institute. These studies have shown time and again that equity investors are not even keeping pace with inflation. For example: In Dalbar’s study of the 20-year period between 1986 and 2005, they found that the average equity investor actually earned just 3.9% annually.
Unlike other investments, every dollar put into an index annuity is going to work immediately for the consumer. There are no annual management fees. There are minimum interest rate guarantees. The surrender charges are only applied if the client decides they need to take money out of the account during the surrender charge period. The insurance companies make their money and pay agents their commissions out of the spread between what they make on the money they have invested and what they pay the annuity holder, just like what a bank does.
You should feel good about what you can offer your clients. There is no other product that offers the safety, guarantees, tax advantages and the potential for higher returns like an index annuity does. There is no question that index annuities do provide a great value to consumers, and especially to seniors.
Yours in Success,
Forrest Wallace Cato, RFC, RFMA, CRR, CPC, Legendary Media Consultant to the Financial Industry... and Edwin P. Morrow, CLU, ChFC, CFP, RFC, CEP, FMM Chairman & CEO of the IARFC...
Two Very Special Guest Speakers At Our
Recent Found Money Management™
Advisor Boot Camp
John Fitzgerald Kennedy
Get to know
us before you invest your time and money |
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Important Prospecting Update… Attract People With Your 'Lips' Insurance
marketing is about helping people solve their financial problems. A
great way to uncover their concerns is to use the "LIPS"
Formula. (Like, Improve, Problem and Solution.) “Acting on a good idea is better than just having a good idea.”
Robert Half |
Testimonials and Success Stories…
"Wisdom is knowing what to do
next, skill is knowing how to do it and virtue is doing it."
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Listen, over the years, you're going to spend thousands of dollars of your money and time building your insurance sales and services business. Why not learn how to do it the most cost effective, money-making way? Why not learn the 'Insider' life insurance and annuity marketing, prospecting, appointment setting and sales secrets, tips and ideas that the leading agents, advisors and planners on the planet use? It just makes good sense!
"Success Doesn’t Come To You… You Go To It." Marva Collins
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Lew and Jeremy Nason Marketing and Sales Coaches
P.S. Do you have a friend or associate who needs help? Why not tell them about our web site or better yet, forward this newsletter to them. They'll thank you!
©
2008, Lew Nason, RTIA, RFC, LUTC Graduate - All rights reserved
Helping Insurance Agents and Financial Advisors create endless streams of new, repeat and referral business…
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