Marketing EIUL?

[ThinkBig]

I am new in this business, my primary product is going to be a good EIUL. The focus is to educate and help clients in their retirement. I also have other products to offer if EIUL is not in their best interest, it is not my goal to just sell, but to do what is best for the client.

I would greatly appreciate any advice on marketing, lead generation, and networking.

 

[James]

I am new in this business, my primary product is going to be a good EIUL. The focus is to educate and help clients in their retirement. I also have other products to offer if EIUL is not in their best interest, it is not my goal to just sell, but to do what is best for the client.

I would greatly appreciate any advice on marketing, lead generation, and networking.

Personally I feel as though the EI in UL, is there for only one reason. That is to bring back the "Projected Value" that is unreasonable and several years ago agreed by Carriers too no longer use. Why do you want to sell EIUL's over Life Insurance in general? Or answer me this, how can a carrier offer a product that suppose to or have the ability to perform better then the company itself?

 

[ThinkBig]

The reason I like the EIUL is that in a side by side comparison of actual product in force to other conservative investment vehicles, the EIUL simply out performs.

Let's say there are two individuals, one has $100,000 in a mutual fund which is owned by his Roth (this is so we can do an "apples to apples comparison"), the other, has his a policy with a cash value of $100,000. The year is 1998, MF guy is feelin pretty good cause his money is soaring, EIUL guy is feelin ok cause his money is there and is growing.

1999 comes around and its time to evaluate their plans. MF guy now feels great, his fund now has $120,909, that's pretty good and he is proud of his wisdom in listening to the advise of his CPA and CFP. EIUL guy looks at his policy, which now has a CV of $117,250, and feels pretty good about his return, although admittedly he would like the higher rate MF guy is getting.

Now its 2000, time to take another look, MF guy is pretty happy, his fund now has $136,937. EIUL guy's policy now has a cash value of $127,427, granted not the same rate as MF guy is getting, but not bad.

2001, and time again for evaluations. MF guy takes a look at his fund, its been a tough year, his fund now has $99,228, a significant loss, but he is sure the market is going to bounce right back and in a couple years he will be back on top. EIUL guy, takes a look at his policy, not such a great year he thinks, as I still only have $127,427.

Now in 2002, MF guy says, well, I thought this was going to be a better year, but now my fund only has $78,869. EIUL guy, now has a policy with a CV of $127,503, and given the say the market has performed, he feels pretty good with his choice.

2003, the markets are back up, and MF guy now has $95,952. EIUL guy is looking at a CV of $136,606.

In 2004 we look again and find MF guy with $106,268, and EIUL guy now with a CV of $143,573.

And in 2005, we finaly have MF guy with $117,033 in his fund, and EIUL guy with a CV of $148,483.

So, side by side, who is in better shape?

Not to mention the benefits of liquidity and various pay out options, tax savings, and death benefit.

Please remember, I do not think anyone should put everything in one vehicle, I believe in diversification. I do not believe, as some do, that a mutual fund = diversity. And when you take into account the fact that in many of these funds more than 50% of the what a client pays in is sucked into the pockets of the fund managers and company overhead, they're not all they are touted to be.

Also, since more than 90% of term LI policies never pay out, they are not the best choice for someone that can afford better. I would rather educate a client on the benefits of a permanent policy which has flexibility and good growth with the safety of never losing your CV, and let them decide, rather than just throwing term policies on them since the media and MF salesman are already selling term.

Thanx for your opinion and input.

 

[James]

Well, good for you! Can not say I would agree with your numbers in years coming, no one really knows. Yet my point was that a good PWL will pay the same if not better then a EIUL and the guarantees are much better for future growth. Yet whatever you choose, read your policies carefully with a fine toothcomb, the devil is always in the details.

 

[JMO Fan]

When indexed UL came out in the mid-1980s, many thought it would replace fixed-guarantee UL. The product fell flat on its face, because UL companies were much more willing to guarantee solid current crediting rates than they were to cut the loads on indexed UL. EIUL might turn out better, but without guarantees, only time will tell.

Be careful that you don't tout EIUL for its investment advantages, especially in comparison with other investments. If the emphasis is more on investment than insurance, the transaction puts the product outside the SEC's Safe Harbor for insurance (and EIUL might be outside the Safe Harbor anyway, based upon the SEC's 1980s published discussions of the securities aspects of indexed products). State securities depts in several states, as well as FINRA, have labeled such transactions violations of securities laws.

 

[ThinkBig]

James, I agree with you 100%, while the numbers posted above are real, they are past. No one can gaurantee future returns on anything except very low yield products.

My mentor, who has been in the business over 20 yrs (and holds a series 65, mortgage broker's, real estate, and insurance in most states), owns a lot of this product himself. That tells me something. The more opinions and facts I can get the better though, as always.

JMO, thanx for your input. You are right, insurance should always be sold primarily as insurance. EIUL is a fixed product gauranteed to never lose money and certain aspects have a gauranteed return, so I don't see where the SEC has any jurisdiction, I could be wrong, and frequently am, but my understanding is the SEC only has any jurisdiction where variable's are concerned.

I'm not here to defend the product though.

So, back to my question, since it is my goal to sell it to people who can benefit and want it, what's the best way to go about finding those people? Now I know what you are going to say, go ask your mentor. Well, he leans heavy on natural market, recruit an agent once every month or two, and then work theirs. Its not a bad plan, it works well for him and he is making great money. I however am not quite that comfortable with this approach, maybe I should be....

Suggestions, comments?

 

[James]

So, back to my question, since it is my goal to sell it to people who can benefit and want it, what's the best way to go about finding those people? Now I know what you are going to say, go ask your mentor. Well, he leans heavy on natural market, recruit an agent once every month or two, and then work theirs. Its not a bad plan, it works well for him and he is making great money. I however am not quite that comfortable with this approach, maybe I should be....

Suggestions, comments?

The natural market strategy is a good one but just one avenue. I would suggest to heavily go after it, this is where referrals really helps. You also have business's and the self employed. Then you have well compensated workers, Medical, Sales etc etc...

Yet though, I really don't understand the idea of leading with any one product. It is best IMHO to first meet with the potential client and then go from there. UL, WL and Term should be on the table and only after you do your initial review should you consider offering an opinion or strategy for the client. I find that selling Term or a Mix then later working on the conversion is still the best plan out there. I find it just a tad difficult to sell a high premium in the first year of any client relationship. Not saying it doesn't happen but it is a rarity and not the norm.

 

[ThinkBig]

I've run across this idea of doing seminars. Like I said, I'm brand new at this, but my thought is do a seminar using my EIUL presentation, answer some questions, and set appointments.

Would this work?

If so, where and to whom? Or, in other words, how the heck do you get in anywhere to do this?

 

[James]

I've run across this idea of doing seminars. Like I said, I'm brand new at this, but my thought is do a seminar using my EIUL presentation, answer some questions, and set appointments.

Would this work?

If so, where and to whom? Or, in other words, how the heck do you get in anywhere to do this?

If you have a good presentation and good with public speaking this is a tried and true strategy. Exactly what market are you going after, outside of selling EIUL? Remember, EIUL is only a product, rather new one with the troubled UL as the foundation. Yet, the UL is a staple within the industry, usually sold as a cheaper version of WL, we all know what cheaper means. I really don't understand being hooked on one product.

 

[ThinkBig]

My focus is on helping people with retirement needs. Soon I will begin studying for a securities license as well. I do have other products if EIUL isn't right for the client.

For now, my prime target market is 35-50 yr old, $40g+ in income.

My speaking skills aren't the best, not the worst either. Toastmasters is a thought, but I'm not sure yet just how good they really are.

I have a PPT presentation, its pretty good.