Sales Practices
#380 | Whole Life as a Fixed Income Alternative – Part 3
Modern Portfolio Theory (MPT), first formalized by Harry Markowitz in the 1950s and later earning him a Nobel Prize, is essentially the idea that the optimal portfolio is the one that provides the best relationship between risk and return. In…
#378 | Whole Life as a Fixed Income Alternative – Part 1
Full Article For the past 35 years or so, Whole Life has often been positioned against traditional fixed income in a very particular – and peculiar – way. We all know the narrative. Falling interest rates created a long-term phenomenon…
#365 | The Other Whole Life Market
Quick Take By premium, Final Expense is a relatively small part of the life insurance market. But by policy volume, it's a juggernaut, accounting for nearly 20% of all life insurance policies sold in the United States. What is Final…
#353 | Premium Financing & Rising Rates
Quick Take Premium financing is facing what feels like an existential threat in the form of high interest rates and lagging policy performance. In my experience, the vast majority of premium financing is sold to clients who expected leverage to…
#340 | The Infinite Banking Concept
Quick Take The Infinite Banking Concept (IBC) has attracted something of a cult following for its quasi-libertarian branding and purported financial benefits. The core idea behind IBC is sound - using policy loans from a Whole Life policy is a…
#331 | Cue the Premium Financing Lawsuits
Quick Take What does the recent spate of lawsuits on premium financed IUL tell us? In my view, five main things - choose your premium financing specialist wisely, absurd assurances about performance are a predictor of future problems, make sure…
2021 Premium Financing Vendor Survey
Despite the fact that this publication is called The Life Product Review, I occasionally take a detour into sales strategies focused on product, particularly premium financing. I’ve found that there’s a huge appetite for content on premium financing. Everyone has…
#287 | Peak Premium Financing?
Last weekend, I was up in the mountains of North Carolina and happened to run into a guy from Tampa who I knew from overnight camp when I was a kid. I hadn’t seen him since we were both counselors…
#269 | Tackling an Aggressive Premium Financing Proposal
Over the past year, I’ve seen somewhere around 50 proposals for new life insurance transactions from all corners of our business and sent to me by brokerages, agents and even consumers who find me on the internet or are referred…
#261 | The Compensation Conundrum
Now that the dust is settling on the changes to Section 7702, two big questions are starting to emerge. The first is in regards the degree to which life insurers are going to take advantage of the new latitude in…
