A recent report featured on Insurance News Net showcases the extraordinary and continued growth of the IUL (Indexed Universal Life) insurance market segment, reporting IUL sales up 15% in 2015.
The Relevancy of Indexed Universal Life in The Wealth Management and Retirement Marketplace
As more and more advisors become aware of some of the great benefits of packaging IUL’s as retirement investment vehicles for their clients, the interest in IUL continues to grow. IUL’s can get a bad rap for many reasons, but when advisors properly structure IUL’s as a retirement planning tool for their clients, IUL’s can provide a great source to supplement income in retirement. Providing the ability to receive tax-free distributions as well as protection from market volatility through upside gains potential and protection from loss of principal, they also offer a tax free death benefit to help protect loved ones.
A few ways advisors can make sure they don’t “Miss The Boat” regarding the current growth of IUL:
- Become Familiar with IUL’s
In order for financial advisors and wealth managers to be able to understand the benefits of IUL and how they can fit into their product retirement portfolios for clients, it’s important that they firstly understand how IUL policies work. There are a great deal of resources and training programs out there, including a complete turn-key program Resource Solutions has to offer. Whether you attend a training event to learn how this incredible product works, or bring on a new team member, the point is that you need to clearly understand how IUL’s work and what differentiates them as a retirement savings vehicle from alternatives like Roth 401k’s and Roth IRA’s.
- Learn How to Communicate the Benefits
IUL’s can become very complex and confusing, not only for financial professionals but for potential new and existing clients as well. It’s important not to overwhelm prospects by over complicating the delivery of information. Just like any other product, you need to simplify the process so that clients can clearly understand the product’s benefits. Do this by using visuals, real life examples, and talk about the core differentiating features like the potential for tax-free income, upside market gains, protection against market losses, etc. Make sure you take a step by step approach with each of the featured benefits and how they would work and look in each scenario.
- Use IUL to Unlock Your Prospecting Demographics
IUL is a fantastic retirement savings vehicle for financial advisors to market their services, and in almost every demographic, there is a strategic fit for the IUL product. This mix match creates the perfect opportunity for advisors to open up their target demographics and expand their business in new and exciting ways. And when considering the 30 trillion dollar poised wealth transfer from Baby Boomers down to gen Xers and Millennials; the relevance for younger demographics has never been more important.
Although complicated and sometimes even misunderstood, for the advisors that choose to offer IUL, the benefits of doing so can be both rewarding and fruitful for all parties involved. If you are interested in learning more about how to strategically market Indexed Universal Life, please feel free to contact us on to learn more about our complete start to finish, proven effective “PLUG AND PLAY” marketing IUL Solutions Program here.