I have been working on Commercial Real Estate Advisors and there Life Insurance needs trying to position it (Life Ins) as an accumulation vehicle as well as a death benefit. They all come up with the fact that they can do better buying another piece of property. I respond with diversification as well as the many benefits of the product. Any suggestions?
Selling Life Insurance To Commercial Real Estate Advisors As An Accumulation Vehicle
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Of course they can do better with property. Their property is an investment. Life insurance is SAVINGS. Savings and investments are similar words, but as Mark Twain said: "The difference between a similar word and the right word is the difference between lightning and the lightning bug."
What if they borrowed the money from the life policy to fund their new property acquisition? The money would continue to grow as though they never touched it (as long as they pay the annual loan interest out of pocket) and they can "spend and save" the same dollar twice.
The magic of permanent life insurance is being able to USE the money and still have it grow within the product, rather than as a separate "asset class" as a "bond portfolio substitute" or other such 'asset allocation' strategy.
What if they borrowed the money from the life policy to fund their new property acquisition? The money would continue to grow as though they never touched it (as long as they pay the annual loan interest out of pocket) and they can "spend and save" the same dollar twice.
The magic of permanent life insurance is being able to USE the money and still have it grow within the product, rather than as a separate "asset class" as a "bond portfolio substitute" or other such 'asset allocation' strategy.
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It can be either Whole life OR IUL.
As long as you over-fund the policy (minimum DB, Max cash) so there is maximum cash values in the 1st year that they can borrow from, it'll work.
The only differences are the ongoing rising costs of insurance in the IUL... and that interest is not guaranteed in the IUL because it's based on the underlying index segment performance.
As long as you over-fund the policy (minimum DB, Max cash) so there is maximum cash values in the 1st year that they can borrow from, it'll work.
The only differences are the ongoing rising costs of insurance in the IUL... and that interest is not guaranteed in the IUL because it's based on the underlying index segment performance.
They will always earn more in real estate, however, they will always need to have a place for safe money, they will always need money they need to access for repairs, they can always use the cash value as an asset for liquidity purposes in commercial financing, try doing that with a SEP IRA or another property. The loan from cash value life insurance is not subject to a bank approval or credit check, any commercial realtor will like that fact. I am biased I prefer whole life over IUL for someone in real estate business as their income is more tied to interest rates.
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walthamny & DHK, which whole life product(s) do you like best for cash accumulation? would you be able to give your top 2-3?
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The way I look at it, they're all about the same. It's more about how the agent structures the contract for the client. I never compete or compare companies... only agents.
That being said, there are companies that I favor doing business with over others. I like Assurity for low face amounts (WL as low as $10,000 face), e-apps, and disability income rider on top of a disability waiver of premium for the base policy + riders (does not cover the PUA rider though).
I also favor Ohio National particularly for limited pay policies.
Just remember what Marvin Feldman's rule of 1 to 100. "In one year, 100% of your illustrations will be wrong." So focus on WHY your client should buy... not WHAT they bought. His father, Ben Feldman called illustrations "estimates" and different companies will have different estimates.
Ben Feldman primarily sold New York Life whole life as a solution for people's problems... not just because "it was the best performing" or the "best illustrating". John Savage sold Columbus Mutual... because he was solving problems, not trying to replace anyone else's business... and he didn't exactly have 'competition' to worry about either.
So just pick 2 or 3 companies that YOU like (and pay you well) and just stick to them until you find something better.
That being said, there are companies that I favor doing business with over others. I like Assurity for low face amounts (WL as low as $10,000 face), e-apps, and disability income rider on top of a disability waiver of premium for the base policy + riders (does not cover the PUA rider though).
I also favor Ohio National particularly for limited pay policies.
Just remember what Marvin Feldman's rule of 1 to 100. "In one year, 100% of your illustrations will be wrong." So focus on WHY your client should buy... not WHAT they bought. His father, Ben Feldman called illustrations "estimates" and different companies will have different estimates.
Ben Feldman primarily sold New York Life whole life as a solution for people's problems... not just because "it was the best performing" or the "best illustrating". John Savage sold Columbus Mutual... because he was solving problems, not trying to replace anyone else's business... and he didn't exactly have 'competition' to worry about either.
So just pick 2 or 3 companies that YOU like (and pay you well) and just stick to them until you find something better.
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Since I like Trump... SCREW the PC crap! 
Just because you don't see much of it doesn't mean we don't do it.
The biggest thing is to make sure which state you're doing the cases in, so we can be sure we have state-specific information. California and New York are the worst because of the over-regulation of insurance and financial services... but there can be other differences state-to-state.
Just because you don't see much of it doesn't mean we don't do it.The biggest thing is to make sure which state you're doing the cases in, so we can be sure we have state-specific information. California and New York are the worst because of the over-regulation of insurance and financial services... but there can be other differences state-to-state.
You can not have PC in the life insurance industry. However, we are not the one fact finding. So any solution we suggest you have to explain it in terms they can understand/relate. Case like this if the prospect is healthy, I would use ONL 10 pay product, I would also sell them additional 20 year term. Once the payments are made for 10 years, they can convert more if they wish. If they are not in good health, then it is a different ball game. I am putting a case through just like this this month, I hope he passes through ONL underwriting. ONL works much better for independent advisors like us. Can use another company. Sure, you can use MassMutual or Guardian and get pretty much the same result. Private message if you are still worried about PC
