Comment on A More Balanced Approach to Comparing Policy Illustrations by Byron Udell

Comment on A More Balanced Approach to Comparing Policy Illustrations by Byron Udell

Some agents “know”. Many unfortunately do not. I’ve heard and seen so many presentations by agents, and carrier representatives touting one or more of the wonderful features of their products… features that they claim make their products better… the proof being in the illustration, which is full of non-guaranteed elements. If you were around during the 80’s, when illustrations were initially used to sell life insurance, you have lived through the nightmare that they create. No, you don’t just flip a coin. You examine the reasonableness of what any carrier is illustrating, relative to what other carriers are illustrating. You then ask yourself how one carrier is able to seemingly “deliver” so much more value to the client, the agent, etc.? Back in the 80’s, Executive Life was winning the illustration wars, by claiming that they could deliver higher interest rates because they were “better” at investing their money. Those naïve enough to believe that crap, and those who failed to understand that it was not skill that delivered their temporary higher returns, but their willingness to assume more risk that did so. You should know this didn’t end well for them. The current wave of blue chip carriers that are raising mortality charges on existing UL policies, even in the absence of any actual increase in mortality costs, should be an obvious wake-up call for any agents foolish enough to believe that the insurance companies can be trusted to “do the right thing”. In fact, one large carrier used to use the slogan, “Doing the right thing is smart business.” Oddly, they abandoned that slogan, with no explanation as to why. If you want to determine which company’s product is best by seeing which one illustrates best, and you sell using those techniques, I recommend you line up a good attorney, as you might be spending your retirement years defending those practices.

Source: Insurance News Net

Comment on A More Balanced Approach to Comparing Policy Illustrations by Byron Udell

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