Life after AG 48 The Law, The Effects, The Opportunities

The Companies are afraid

The representatives are afraid

The clients are afraid

Life is great.  Now companies have to make sure the printouts they arm us with are ones the company can deliver over time.  Ain’t that a kick in the pants.  Isn’t this what companies were suppose to be doing all along.  Now Insurance companies can have significantly more costs.   They are also concerned about their product having too many guarantees that they risk the use of their tieing up reserves.  The agents representatives and advisors are afraid that the products lose the sexiness without showing those sexy lofty returns over a long period of time.  Now they must illustrate more realistic interest rate hypothetical’s that  match what their experience has done.
1) We will have more realistic illustrations as well as our competitors will be forced to show the same.
2) Companies must show more realistic variable borrowing rates than in the past
3) We must be more creative and understanding of our clients and prospects and provide solutions
4) It will force people to believe more in cash value products that have real cash in them
5) It forces the unscrupulous and/or the non educated in our industry to become a better asset to their client
6) Companies are buying out old guaranteed contracts and are offering lucrative conversions

The Bad 
1) Insurers who have already taken their GUL’s away now are discontinuing other products.
2) It makes it a little harder for ourselves to over promise and under deliver with lofty projections
3) Many companies are limiting the use of their historical illustrations

The Opportunities

  1. Now we can do a policy review (we have detailed complimentary impartial analyse with in force illustrations from the in force companiy
  2. We can be creative and layer insurance policies for different purposes.
  3. These new policies that insurance companies have designed can work with interest rate assumptions or hypothetical with as little as 4.5%
  4. We can add LIVING BENEFITS to their policies including Critical Care LTC, disability and accelerated benefit riders that old policies don’t have
  5. We can rescue non performing policies
  6. We can explore other needs like loan protection for practices, SBA loans, other loans protection
  7. We can leverage the rich or better off people with strategies where they can have use of the money when they need it.