WFG Agent Training?

[rayluk]

Hello, I need some insight from people who are familiar with this. Thanks.

I recently ran across two incidents reviewing existing policies with clients or referrals. One client has Allianz FIA and WRL IUL. The one I am concerned about is the IUL.

There are two things I am particularly troubled with. One is the the policy design. Client was 39 when it was issued. Male, 500k policy, 400 mo premium. No lapse rider on till he is 59 (20 years).
Client was told it should be funded to age 60 and done. Client met with agent for review but was not shown an in force. Is this even the norm?

Second, client recalled agent something related to 7702 to get money out tax free upon retirement. This was the second time I heard this term being used related to WFG case. What is with that? I felt pissed because WRL agents seem to be trained to throw tax code out to build credibility on what they are saying without really explaining to clients, or even know how LI can be distributed correctly for their benefits and purposes. Am I missing something here? And how would you counter that and explain to clients?

Thanks.

 

[Lewis_FL]

The client can call WRL and get their own in-force illustration. Use a conservative interest rate; no more than say 6% or so. Then see what happens when he stops paying at age 60. If by chance it doesn't lapse before age 90 to 100 then see what kind of income can be generated (withdrawals then loans). Of course this is all totally hypothetical and will never happen but this is how CV life insurance is sold.

 

[DHK]

Second, client recalled agent something related to 7702 to get money out tax free upon retirement. This was the second time I heard this term being used related to WFG case. What is with that? I felt pissed because WRL agents seem to be trained to throw tax code out to build credibility on what they are saying without really explaining to clients, or even know how LI can be distributed correctly for their benefits and purposes. Am I missing something here? And how would you counter that and explain to clients?

Thanks.

Just start laughing with that knowledgeable laugh we can all have when we see the "amateur night in the arena" stuff.

You see, it's helpful to know various code section numbers and to know what they are... then you can play "me too" with them and then simply explain that you don't have to use the IRS Internal Revenue Code to "impress" them.

You should look up all these code sections and just 'know them':

7702 = Life insurance contract.

72 q/t = Sequentially Equal Periodic Payments out of qualified retirement plans, IRAs, and non-qualified annuities.

79 = tax deductible life insurance plans

101 = income tax free benefits of life insurance

401 = qualified retirement plan

402f Special tax notice form = qualified plan distribution options (rather helpful to know when you call qualified plan providers with your client and they ask if the client has reviewed the IRS Special tax notice - you can simply say 'yes' because you can pull them right off the internet.)

403 = 'wannabe' qualified retirement plan for non-profits such as schools and hospitals.

408 = Individual Retirement Accounts

412e3 = Defined benefit pension plans

1035 = insurance contract exchange



Now, if you want to REALLY impress someone, have your own presentation reference manual with various IRS publications pre-printed in them, such as:

IRS Publication 590 - Individual Retirement Arrangements

IRS Publication 560 - Qualified Plans

IRS Publication 550 - Investment Income and Expenses

IRS Publication 936 - Home Mortgage Deductions


All of this in addition to an annual "tax rate" packet of information.


In short, DEMONSTRATE that you have a working knowledge, not just being able to "throw a number or phrase at someone" when you want. You actually KNOW this stuff, and can reference it, and show them and help them DISCIPHER what these amateurs were trying to say while trying to impress them.

You don't need to work hard to impress. Be impressed with them and by them... and just know your stuff better than the next guy.

 

[rayluk]

Thanks to both. that helps.
DHK, great ideas on having those referenced just in case. appreciate that.

 

[Diablo]

Say no to WFG. You will start at a 35%contract and eventually move up to 85% when you are at the top of your game. You can do much better elsewhere. Hell, go to one of their weekly meetings and you will see.

 

[rayluk]

Thanks Diablo. I am just wondering about their training program because it seems deceptive to the clients.

 

[Diablo]

It totally is. They advocate themselves as "financial educators." They have you do flip chart presentations for various scenarios. They are either owned by or a subsidiary of TransAmerica. Not sure which direction you want to take, but I use TransAmerica, Assurity, Foresters, Americo, and Royal Neighbors for term. All of these companies also have final expense plans, which is the bulk of my business. Contact member: Newby

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Newby can also refer you to a good IMO for UL products.

 

[DHK]

Thanks Diablo. I am just wondering about their training program because it seems deceptive to the clients.

Based on the original post... it's not deceptive. It was plain wrong and ignorant.

Based on your post, the agent touted "7702" as a distribution strategy when it's the IRC for the taxation of life insurance.

If you were a business owner, and I said that I was a business life insurance specialist, and I wanted to talk to you about Internal Revenue Code sections 72, 79, 1035, 401, 403, 408, 412e3, and 7702... would I be lying?

Nope. It's not deceptive.


Here are the problems with WFG:
1. The blind leading the blind. Everybody learns the "same presentation" and no one knows how to think and evaluate things for themselves.
2. They "hire" anybody that can pass the state license exam.
3. They offer a 25% contract up front... and you can only increase it by recruiting others.
4. No professional development, nor any professional associations encouraged.
5. The "MLM" culture.

Because of all of these things, they (and Primerica) really do a big disservice to the industry and to truly professional agents.

However, I have to admit something: They have a target market, and they move a lot of product. In general, it seems that they focus on the market that the majority of career agents ignore.

It certainly makes it easy to replace their business though!

 

[rayluk]

Spot on there once again.

 

[KRGraybill]

I am asking this as a Newbie... what do you think their target market is? I have been to several of their meetings and I've been in sales long enough to know a good "hook" talk when I hear it... but I always left with the feeling I had missed something...