01/17/2021
This post is for licensed insurance agents and tax professionals. I just closed a deal tonight on a policy that's $18,000/mo. in premium. This policy will pay me approx. $194,000 in commission which will be spread out in 5yrs. That's over 38K in upfront money per year for 5 yrs. Renewal is about 10K per year for 15yrs. What policy did I sell? The option I used for this case is IUL with Premium Finance. This is what's possible in the insurance industry. So, if you are in this group, you certainly made the right decision on starting your insurance career. Premium Finance is a niche we have. Not well-known even by most experienced brokers in the industry.
What did I do for the client? I solved a problem for a 61yr old gentleman who has nothing set up for retirement. With the option I gave him, in 16 yrs, he will be able to draw 100k per year for retirement until age 100. In the meantime, while this policy is growing, his family is also protected with a little over 3M of life insurance. The best part, the $18,000/mo premium, he only has to pay about $400/mo. using his own money. The rest is financed and with no payback. I got a bank to loan him 217K per year for 7.5yrs to fund his policy. After 15yrs, there will be enough cash value to pay the loan back AND fund his retirement. The $400/mo. is the interest he has to pay. His total lifetime out of pocket is $438K, his return is $2.4M, and he also has 3M life insurance. He can't lose with this option. Before I can get off Zoom with him, he was asking if I can help some of his colleagues. He's going to suggest to them to drop their current financial advisors🤣🤣🤣. He initially asked if I can find him a $1,000,000 20yr term which was going to be about $400-500/mo. What do you think he's better off with? $1M 20yr term policy for $400-500/mo that will end at age 81? Or $3M IUL for $400/mo that will give him 100K/yr income for the rest of his life? This is an example of being a true financial advisor, not just an insurance agent! The moment you stopped being an order taker (typical agent), instead, learn how to be a problem solver (financial advisor), you will increase your income drastically. Commission on the $500 term would have been about $4,500-5,500at the top commission level. So, $4,500 vs. $194,000. You do the math. You're worth more if you can solve problems for people! Be sure you take advantage of every learning opportunity. Oh, I forgot to mention, NO chargeback on this policy because the bank is paying for the first-year premium upfront for the client!💪💪💪High net worth individuals, celebrities, high-income earners, business owners & pastors are perfect candidates for this option. This option can be used for tax strategy planning. If you have anyone that fits this description, get with me to see if they are a good fit. Btw, the loan is not based on credit.
