Sales Practices
#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…
#258 | Allianz Showcase & The Future of Illustrations
When AG 49-A was solidified over the summer, there were rumblings in the industry about rogue premium financing vendors and distribution firms planning to create their own spreadsheets to run illustrations that would not have to conform to the new…
#250 | McGinnis vs. Everyone
Two weeks ago, Life Annuity Specialist, a news publication for life insurers, ran an article about a lawsuit filed in Texas (here) by a consumer against his agent, the agent’s brokerage firm and the life insurer. My ears always perk…
#241 | The Premium Financing Exit Mirage
Indexed UL has undoubtedly ushered in a new era of hyper-aggressive premium financing deals and the reasons why aren’t hard to figure out. Indexed UL allows for illustrated rates based on hypothetical historical lookbacks and the maximum rate is the…
