November 2001 | Advisor Today Articles

November 2001 Advisor Today Articles Online

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Cover Story: Selling VULs in a Volatile Market

Targeted sales, flexible products and thorough risk assessments are keys to success.

By Robert O'Connor

Fueled by the growth of an equity culture and widespread wealth creation, variable universal life (VUL) insurance has become one of the biggest success stories in recent years. Although insurance companies began selling variable products in the 1980s, it took an explosion of consumer interest in mutual funds over the last five years to open up the VUL market. From a relatively small base in the mid-1990s, VUL now accounts for almost half of all new premium income.

NAIC Thanks NAIFA for Its Efforts

Read letters sent between NAIFA Vice President and Associate General Counsel Bill Anderson and NAIC President Kathleen Sebelius regarding fraudulent health plans.

Making the Transition: Making the Most of Your Client's Money

The stock market and real estate are the best equity investments.

Donald Ray Haas, CLU, ChFC, CFP, MSFS

Asset allocation is industry jargon for spreading money around in your client's savings and investment portfolio. A diversified portfolio is key to potential growth and must provide some safety of capital. Proper diversification is just as important for both pre-retirement wealth accumulation as it is for post-retirement growth.

Managing Money: Should You Retire Early?

In most cases, it makes sense to take the benefits earlier rather than later.

James P. Ruth, CFP

There are many factors to consider when making an early retirement choice. Health and family history can play an important role in the decision, as can job satisfaction. Also, if you like your work, you may not want to just walk away from it at 62 or earlier.

LSOL: Thoughts from Left Field

It's nice when your client finally pays attention.

Penny Righthand, CLU, ChFC

As one of the players was rounding the bases after having hit a homer and as my voice was starting to crack from screaming, I asked my friend sitting next to me, who also sells life insurance, "Wouldn't it be nice to be cheered every time we did what we are being paid to do?"

ViewPoint: Insurance-Based Financial Advisors

We help clients succeed through all economic cycles.

Arthur D. Kraus, CLU, ChFC, NAIFA CEO

As I travel throughout the country, I see pride in the work our members do. Some of our associates want to be no more than the best they can be in the insurance field. They have no desire to do planning. Great! After all, they are helping families and businesses with the bottom tier of the pyramid. There are others who want to do more and concentrate on financial advising for their clients. That, too, is great! Our members are insurance-based financial advisors and the pyramid is insurance-based.

E2E: What is Your Risk Tolerance?

Asking clients this question can place them in jeopardy.

Robert Castiglione

"What is your risk tolerance?" is a question that consumers are often asked at the beginning of a financial planning and advising session. In the financial services industry, it is often thought that high risk means high reward and low risk means low reward. But this isn't necessarily true. In fact, asking clients for their risk tolerance can actually place them in jeopardy.

Web Exclusive: LIFE Reaches Out to Families

LIFE hotline and website streamline claims processing.

Bruce Mendelsohn

Responding quickly to the events of September 11, 2001, LIFE has created an unprecedented coalition of insurance companies and professionals to help survivors of victims of the attacks get the insurance information they need to rebuild their lives. Focusing on those who do not know where to turn or perhaps have no place to turn, LIFE has begun to reach out to industry organizations and companies seeking their cooperation in helping these people.

Web Exclusive: How to Communicate During Times of Crisis

Finding leadership in times of trouble

Rob Sherman, Esq.

As we struggle to return some sense of normalcy to our lives after the September 11, 2001, World Trade Center attack, the nation as a whole yearns for leadership so its people can find strength.

Web Exclusive: Still Cold Calling?

Landy Chase, CSP

Get over 200 face-to-face meetings per year with the most
important prospects in your market.

This is not to say that prospecting isn't a good use of your time. It is, of course, a critical component of your ability to successfully grow your client base. However, prospecting and cold calling are not the same thing. Prospecting is not a selling activity. It is a form of marketing, which is what you do to get opportunities to sell. Selling is the result of effective marketing. Using this definition, cold calling is easily the least productive use of your marketing time. Is there a better way to get qualified buyers to see you?

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