Indexed Universal Life insurance has fast become one of the most popular savings vehicles implemented into the retirement planning process within the financial services industry over the past few years. Many top advisors and planners are now utilizing some of the significant benefits found in IUL over other financial instruments to hedge against market volatility, taxes, and potential extended healthcare costs. That being said, as a financial advisor, RIA, or insurance agent, you may have wondered what all the noise has been about when it comes to Indexed Universal Life and whether or not you should consider marketing with IUL.
The following are what RESOURCE SOLUTIONS believes are the TOP THREE REASONS you should consider marketing with IUL:
Top Reason #1- Ability of Expanding Your Marketing Demographics
One of the greatest benefits to marketing IUL is the ability to reach a much broader and less saturated audience. The IUL “Tax Free Retirement” concept provides an excellent marketing strategy which can afford the opportunity to get in front of individuals ages 36-55. In contrast to senior marketing, which typically targets individuals ages 55-80, this is not a saturated market. While seniors in many areas may receive anywhere between 5-10 seminar invitations per week in their mailboxes, this younger demographic is virtually untapped.
Another added benefit to expanding your demographics to include younger age groups is by advising on the benefits of IUL well before they reach retirement, you will be much more likely to obtain them as clients PRIOR TO THEM ENGAGING THE FINANCIAL SERVICES OF ANOTHER FINANCIAL PROFESSIONAL. By already becoming their trusted advisor, imagine how much easier it would make things by eliminating the battle of having to fight an existing advisor or agent for business in the future!
Top Reason #2- The Rapid Growth Rate of IUL!
Indexed Universal Life insurance, or IUL, is currently experiencing rapid growth rates in the insurance and financial services industry. In fact just last year alone (2014,) IUL sales experienced a 13% growth rate as reported by Wall Street Journal. This growth rate has been so great that you can be sure today, given our increasing national debt and the likelihood of higher taxes in the future, if you are not selling IUL, your competition surely will be!
Top Reason #3- Potential for More Commissions/Reoccurring Revenue
- No Contribution Limitations
Unlike IRAs and other qualified retirement accounts, the caps on contributions to IUL have no limitations. So what can this mean to you and your clients? Essentially it means your clients can invest as much as they want into these savings vehicles. These accounts that cannot only help them hedge risks associated with their retirement savings but can also provide the potential of providing them with TAX-FREE distributions in retirement. These greater contribution levels are not only great news for your clients but can also benefit you by providing greater earning potential based on the regular and automatic deposits they make to these accounts!
- Great Potential to Build Reoccurring Revenue
With many savings vehicles, commissions are typically paid as a one-time occurrence when the initial sale is made. With an IUL set up on a weekly or monthly basis, every time your client deposits additional funds, you earn additional commissions. The effects end up being similar to those experienced by an RIA building assets under management. Similarly, as you build a book of reoccurring revenue, your business will automatically generate income, building each year along with your growing client base’s automatic deposits into these policies.