Maybe you should email him and see if he can help you.
LIMRA Says We Are Failing the Market Place
- Thread starter PRIYNotYou
- Start date
Maybe you should email him and see if he can help you.
Ask him then.
If a carrier had the solution to this issue, your agency of 117 is likely not their ideal promoter when there are IMOs with thousands of agents they could contact to push "the solution". Not aware of any CEO or executives from carriers on these boards.
- Thread starter
- #13
PRIYNotYou
Expert
- 48
Or call him on his cell....
- 11,287
I was talking about producers.
- 742
LIMRA will have their top brass in our offices in a few weeks. What do you want to know? As an IMO with thousands of contracted agents that focus on middle America...they are interested in talking to us, hence their trip.
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Why not talk with Art Williams? As I mentioned before when he had AL Williams he had a sales force of 200,000 plus agents. Contact some of the old heads and find out how he did it. Yet don't forget back in those days I don't think there were as much regulations or even something like continuing education.
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There also weren't rules about replacements or PHI.
At the risk of offending many on this board, I don't think it takes a genius to figure out why we are failing the middle market. The incentives just aren't there to encourage these sales. If we don't do something about this our whole industry is going to go down the tubes, because the politicians are going to wake up and ask why they are giving life insurance all these tax benefits when insurance isn't being purchased to protect widows and orphans.
The middle market primarily needs term insurance. Term is dirt cheap right now, so what is the problem? The industry incentivizes its field force to sell permanent insurance, which is typically only affordable and only makes sense for the upper-income market. Why spend 6 hours to sell a term case to a 35 year old when you can spend 30 hours to sell a WL case to a 50-year old and make 30x the commission. They key is to figure out how to turn a 6 hour sale into a 1 hour sale.
A radical change is needed. We need to make term life insurance premiums for those whose incomes are less than $110,000 [negotiable] a year tax deductible, so long as (1) the surviving spouse/dependents are the beneficiaries of the insurance and (2) the policy accumulates no cash value/dividends, the face amount does not exceed X amount where X varies based upon whether the insured has a spouse and the number of dependents. Term life insurance then becomes a no-brainer to purchase and a quick and easy sale. The death benefit would remain income tax free so long as it is paid to a spouse/dependent.
How do you pay for it?
1. Eliminate the Social Security Death Benefit for those 65 and younger.
2. Tighten and simply the MEC rules and set lower funding limits
3. Tighten and simply the DEFRA maximums and set lower limits
If we don't do something about the middle market, #s 2 and 3 are going to be best case scenarios with the complete elimination of tax deferral of cash values the likely outcome.
The middle market primarily needs term insurance. Term is dirt cheap right now, so what is the problem? The industry incentivizes its field force to sell permanent insurance, which is typically only affordable and only makes sense for the upper-income market. Why spend 6 hours to sell a term case to a 35 year old when you can spend 30 hours to sell a WL case to a 50-year old and make 30x the commission. They key is to figure out how to turn a 6 hour sale into a 1 hour sale.
A radical change is needed. We need to make term life insurance premiums for those whose incomes are less than $110,000 [negotiable] a year tax deductible, so long as (1) the surviving spouse/dependents are the beneficiaries of the insurance and (2) the policy accumulates no cash value/dividends, the face amount does not exceed X amount where X varies based upon whether the insured has a spouse and the number of dependents. Term life insurance then becomes a no-brainer to purchase and a quick and easy sale. The death benefit would remain income tax free so long as it is paid to a spouse/dependent.
How do you pay for it?
1. Eliminate the Social Security Death Benefit for those 65 and younger.
2. Tighten and simply the MEC rules and set lower funding limits
3. Tighten and simply the DEFRA maximums and set lower limits
If we don't do something about the middle market, #s 2 and 3 are going to be best case scenarios with the complete elimination of tax deferral of cash values the likely outcome.
- Thread starter
- #20
PRIYNotYou
Expert
- 48
Nothing to replace in this market... 90% new business.
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Do they have data to support?
Is PRI a member of LIMRA?
How does Find the Best rank life companies do they use LIMRA data?
Can we use LIMRA data to lobby in Washington?
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What life companies are making the best inroads in the middle market...
Do they have data to support?
Is PRI a member of LIMRA?
How does Find the Best rank life companies do they use LIMRA data?
Can we use LIMRA data to lobby in Washington?
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