I'm not sure why you two didn't understand what I wrote. I didn't say "I can't explain it in under two minutes", and I didn't say "you insurance agents can't explain it", what I said is that while most clients will sit there and nod "yes" when you explain a cash accumulation product, they really don't understand it. They understand what you're telling them at that moment, but they don't understand it the way you understand it. Meaning that they don't know all the details that you've picked up at your seminars and through your magazine articles and our CE classes. And they certainly don't understand it 10 years later.
I believe that what most agents are doing whether they realize it or not, is convincing themselves that they've been responsible, when in fact they've simply talked someone into buying something that 90% of the time will be used improperly.
Clients are never going to understand this stuff like we do. I remember first getting into this industry, it took a while of being submerged in this stuff every day before I had my little moment and everything seemed to make sense. I've accepted that no meeting with a client no matter how many hours we take is going to bring them up to speed with me. That's why we are the professional.
If you go to the attorney's office and he recommends a GRAT to you, are you going to attempt to understand all the ins and outs of what's going on?
None of the people I've sat down with who have life insurance in an ILIT really understand why they have it set up that way.
How many people understand what exactly the accountant is doing when he or she pours over our financial documents and files our income taxes? Ask friends or clients to explain the U.S. income tax system, it's quite amusing.
When you go to the doctor's office and he prescribes you blood pressure medicine do you truly understand the mechanics of what's going on when you take that pill?
That's what being an advisor is all about, advising. If you want to help people make purchasing decisions on products that don't require a lot of follow up due to complexity, the financial/insurance industry was a horribly bad choice.
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But there are others on this board that I would definitely put in this category..
Yes, even tough I believe it's extremely limited in scope, I acknowledge it has it's place in the tool box, no matter how cold, dark, and covered in cob webs
(actually as we know, it can be extremely usefull in several estate planning applications)
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