10 good reasons you should be marketing/Selling IULArticle added by Sean Cooper on January 27, 2017
Sean Cooper

Sean Cooper

Cornelius, NC

Joined: January 05, 2011

If you are already selling Indexed Universal Life Insurance (IUL) , then you know that it’s not just a great product for your customers, but it can also greatly contribute to the profitability of your business. For those of you that have not yet incorporated IUL into the products you offer, the following are 10 good reasons why you should be marketing and selling IUL:

Related: What is Indexed Uniersal Life Insurance

1. Provides The Opportunity To Expand Your Marketing Demographics.
  • IULs can open the prospecting door to help put you in front of an affluent, younger audience, typically ages 36-55. With higher taxes expected in the future, these younger prospects see the real value in a retirement savings vehicle that has the ability to provide a source of retirement income they can potentially receive TAX FREE!
2. Younger Market Typically Not Yet Aligned With Broker/Advisor.
  • Another benefit to this targeted younger demographic is that these individuals typically have not yet aligned themselves with a financial advisor. By creating the relationship prior to them engaging the financial services of another financial professional, you can help eliminate the potential battle of having to fight an existing advisor or agent for business in the future.
3. Differentiates Your Marketing Scope From Your Competitors.
  • Most insurance agents and financial advisors are currently marketing to seniors where, in some areas, their market is completely saturated by competitors. IULs can provide the ability to reach a much broader and less saturated audience.
4. Potential for More Commissions/Create Recurring Revenue.
  • No Contribution Limitations - Unlike IRAs and most qualified retirement accounts, the limits on contributions to IULs have no limitations, meaning your clients can deposit as much as they want into these savings vehicles. These larger contributions can provide greater earning potential based on the automatic deposits they make to these accounts! Great Potential to Build Recurring Revenue - With many savings vehicles, commissions are typically paid as a onetime occurrence when the initial sale is made. With an IUL set up on a weekly or monthly basis, every time your client deposits additional funds, you earn additional commissions. Similar to those experienced by an RIA building assets under management, you too can build a book of recurring revenue through regular automatic deposits into these policies.
5. Helps Provide Volatility Control.
  • By providing upside potential and downside protection, IUL can help provide some volatility control within your client’s portfolio.
6. Fastest Growing Product in Insurance Industry.
  • According to LIMRA’s U.S. Individual Life Insurance Sales Survey, 4th Quarter 2014, IUL drove overall growth in the insurance industry. Growing by 36% in the 4th Quarter, IUL premiums have grown to represent 20% of all individual life insurance premium.*
7. Great Referral Source.
  • Creating trusted relationship with younger audiences can potentially open introductions to parents, co-workers, and friends.
8. Typically Less Underwriting Issues.
  • Due to typical younger writing ages, IUL policies tend to encounter less health-related underwriting issues than those experienced with older prospects.
9. Potential Benefits IUL Has to Offer Existing and Potential New Clients.
  • Unlimited Contributions
  • Can Provide Protection Against Stock Market Volatility
  • IRS Approved Tax Advantages - Structured Properly, Potential To Receive Income TAX FREE!
  • No RMDs- Required Minimum Distributions
  • Liquidity/Access To Cash Value (No Minimum age to access funds)
  • Legacy Planning Tool - Beneficiary Not Subject To Income or Estate Tax on Death Benefit Proceeds.
  • Avoids Probate
  • Chronic And Terminal Illness Rider - Provide Access To Funds In The Event Of Illness
10. If You Are Not Selling It, Your Competition Is!
  • Last but not least, the growth rate of IUL has been so great that you can be sure today, given our increasing national debt and the likelihood of higher taxes in the future, that if you are not selling IUL, your competition surely will be! Indexed Universal Life Insurance can be a real game changer for your business! Join the many top advisors and planners who are now utilizing its’ significant benefits over other financial instruments to help clients hedge against market volatility, taxes, and potential extended healthcare costs. If you are not currently selling IUL, now is certainly the time to take a second look at adding this product to your selling arsenal!

*Source: LIMRA: Individual Life Insurance Sales Experience Strong Q4 Growth
Sean Cooper can be reached at sean.cooper@figmarketing.com. His direct line is 704-439-4394
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