Legacy Assurance Group believes that life insurance agents, annuity producers and financial advisers all across the U.S. should begin adhering to the following success formula;
FIA’s + IUL’s + LB’s + PMM = Wise Insurance Agents & Financial Advisers
Many readers will easily be able to decipher the first two abbreviations, but maybe not the third or fourth ones. Let me unpack these for you and then elaborate a little more…
FIA = Fixed Indexed Annuity
IUL = Indexed Universal Life
LB = Living Benefits
PMM = Professional Money Management/Professional Money Managers
Unless you’ve been living with your head buried in the sand you should know that FIA sales have been occurring now for over twenty years. FIA sales have been going strong and are trending upwards. We’ve experienced multiple years of over $40 Billion in annual FIA sales, which is truly remarkable.
Next, what is the #1 FASTEST GROWING life insurance product in the life insurance industry? Yep, you guessed it…indexed universal life. IUL is soon approaching its’ own 20th year anniversary as well. It’s fair to say it is a product whose time has come. Review the reported industry statistics and you’ll see that IUL sales are on fire!! Ladies and gentlemen, we’ve just witnessed the coming of age to the latest billion-dollar product and there are no signs of sales slowing down. Frankly, many industry insiders (like myself) predict quite the opposite. In my humble and professional opinion, IUL is here to stay!
The advent of LB’s actually goes back many years, but in more recent years the insurance products containing living benefits have experienced tremendous sales growth. More specifically, it has been the life insurance products containing LB’s that are leading the charge! Examples of LB’s are chronic illness, critical illness and terminal illness. Many carriers are offering these benefits free of charge and built right into their life products. LB’s are often paid out as a form of an accelerated benefit when claims are processed. Finally, people don’t literally have to die to reap the benefits of life insurance --- even with term life insurance. Living benefits are also growing in popularity with today’s annuities, but these LB’s are generally tied to nursing home confinement and/or an annuitant’s inability to perform ADL’s.
Lastly, due to the more recent DOL (Department of Labor) fiduciary ruling and, frankly, many other reasons, it is time for fixed annuity producers and financial advisers to move towards a fee-based or fee-only business model. This is achieved by forming an RIA or by joining an established RIA as an IAR. Many professional money managers with proven track records are being sought out for their expertise in the RIA space! PMM appears it could very well be the preferred business model for insurance agents and financial advisers, especially those professionals that work with IRA’s, qualified money and retirement plans. It is very possible that the new fiduciary rule could at least disrupt broker/dealers, mutual funds and the variable annuity providers that have been reaping most of the rewards for decades.