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In your community, how did sales of variable universal life insurance fare in the 2nd quarter of 2005 compared to the 2nd quarter of 2004?

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Our question was: Do current disclosure requirements for life insurance contracts substantially enhance a registered rep’s standing with clients and prospects?

Cross-selling: Making it part of the rep's daily routine
By Warren S. Hersch

On the subject of cross-selling, Raymond Adamson minces no words. “If you’re focusing only on one aspect of your client’s needs, then you’re leaving yourself open to competition from another advisor who will offer your client a full-service approach,” he says. “The fact is many clients want a single point of contact for their financial services.”

Adamson, a vice president and senior coach at The Covenant Group, Toronto, Ont., stresses that cross-selling is key to boosting the insurance professional’s productivity and profitability, and to enhancing client relationships. Those who don’t market ancillary products, he adds, risk losing the client’s business.

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Most advisors evidently agree, but few are acting on their convictions. Citing a survey of the independent research firm Axis Consulting, Adamson notes that 94% of insurance advisors believe that the ability to cross-sell effectively is “critical.” But only...

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Considering index products?

The word on the street is that some reps are so interested in offering index annuities that, if their broker-dealer does not make the product available, they will go elsewhere. Where will this lead? Depending on the rep’s business relationships, that might invite some dicey contractual problems. Compliance problems, too. Some reps are considering dropping their securities licenses altogether, or so they tell me when they call here. A few say they’ve already made this change, preferring to focus 100% on selling index annuities and other fixed interest products under their insurance licenses. There is no telling how much of the above is going on, but...

--Linda Koco, Senior Editor, Products and Managing Editor, e-Publications
National Underwriter Life & Health

1Q 2005 variable life sales slid 16%
By Gabby Cui

Variable life experienced a considerable downturn in sales in the 1st quarter of 2005 compared to the 4th quarter of 2004, even taking into account the seasonality trend that life insurance sales typically exhibit. In addition, sales for the 1st quarter of 2005 were lower than 1st quarter 2004 sales. VL sales with single premiums included at 10% for the 43 companies reporting in Tillinghast’s VALUE survey for 1st quarter 2005 were $629 million. This is a 15.7% decrease from 4th quarter 2004 sales, which were $746 million, and a 5% increase from...

Gabby Cui is with Towers Perrin, of which Tillinghast is a business. Her e-mail address is gabby.cui@towersperrin.com..

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Full Disclosure’s variable life insurance report
By Roger L. Blease

As great as the potential rewards for buyers of variable life policies are, there is always the risk of volatility within subaccounts, particularly those with aggressive growth or specialty objectives. Naturally, one way to reduce the risk is to diversify between many investment objectives. This strategy works well with automatic portfolio rebalancing, which can adjust the investment mix when shifts occur, which lessens overall volatility to an even greater degree. However, for savvy buyers with a long-term view who seek maximum returns through greater risk, there is also a way to reduce volatility without...

Roger L. Blease is founder and principal of Blease Research, Easton, Pa.

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This advisor’s view: Choose VUL for the long term
By Sean Maher

Chasing returns or trends has proven not to be in the best interest of the permanent life insurance investor or policy owner. We’ll look at why that is so and then explore how variable universal life insurance is the permanent life product that best addresses not only long-term investment performance but also client need for transparency and disclosure. Regarding the chasing of yields, it still happens...Though the economy picked up in 2003 and 2004, a considerable shift occurred in insurance purchase preference. Sales of guaranteed death benefit universal life insurance increased. That  was not a surprising trend, given that...

Sean Maher, CFP, is president of Valley Forge Financial Group, King of Prussia, Pa., an M Group member firm specializing in estate and financial planning for high-net-worth clients. His e-mail address is smaher@vffg.com.

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Can advisors make a living selling critical illness insurance?
By Linda Koco

Many agents do not yet understand they can make a living by selling critical illness insurance, says Gordon Gladstone, who finds this impossible to believe. The owner of Critical Illness Insurance Services, Inc., Los Angeles, and a board member of the National Association for Critical Illness Insurance, Washington, D.C., Gladstone says he personally has sold 200-300 individual CI policies a year in the United States—for several years. He sells group CI contracts, too. Even in 1990, his first year of U.S. CI sales, he says he sold 80 CI riders attached to universal life policies.“ Am I a genius?” he asks. “No.” But it did take him a few days to...

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Building a million-dollar practice through worksite marketing
By Gary Schwartz

As companies merge, downsize and reduce benefits, employers and their human resources departments are looking for ways to supplement benefits to help employees reach their financial objectives. I use worksite seminars as a tool for helping the HR departments inform and educate their employees. These worksite seminars are informational programs that we provide at the worksite, where we discuss financial topics of interest to the client with their employees. These usually take the form of a lunch-and-learn or an evening seminar where food is provided.  We advertise the seminars in advance with the...

Gary Schwartz is founder, Madison Planning Group Inc., White Plains, N.Y. His e-mail address is gschwartz@madisonplanning.com.

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CD-Type annuities: Average rates for length of guarantee period

Data as of July 6, 2005

   Source: Fisher Annuity Index, Dallas.

Note:  Rate includes "Non-Forfeitable" first year interest bonus.

Reps Idea: Relationships are the key to sales success
By Lou Cassara

The key to your life and business is relationships. People stay in relationships that focus on the relationship and they leave relationships when they do not. All relationships are a reflection of the one you have with yourself. If you show up and are confused or lack confidence, who will be attracted to you? Only people who are themselves confused and lack confidence. The top insurance professionals use what I call the authentic mindset. They are clear about who they are and confident of what they will and will not do. They align their intentions and actions to produce the results that will...

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Lou Cassara is CEO and founder of The Cassara Clinic LLC and Cassara Associates, Oak Brook, Ill. His e-mail address is lou@cassaraclinic.com.This is an abridged version of a presentation he gave at the MDRT annual meeting in New Orleans.

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