When you are creating a financial
plan and assume a static environment,
you are risking a plan failure. On the
surface, a no-lapse UL product may ap-
pear to be the perfect solution: A fixed
guaranteed premium and death benefit
for life — no problem, right? But what
happens when a premium needs to be
skipped, a client needs a short-term
loan, the premium frequency needs to
be changed to monthly, or a client de-
cides to pay additional premiums? The
inflexible nature of no-lapse UL may
not lend itself to the changing long-term
financial requirements of your clients.
efit. These include cash flow, financial
emergencies and changing financial
needs. Even the wealthiest of your clients likes to save money. Because of
this, consider the efficient use of premium dollars in your solution.
We need to shift our thought process
to one of offering multiple product options — even if the products considered may include higher initial costs.
Clients today may appreciate a solution offering a cash value fund in addition to the protection guarantee. By
offering options that include both cash
accumulation and protection, a client
can have an insurance plan with flexibility for unanticipated changes that
may occur down the road.
So how is this shift in thinking accomplished? An answer may be to start
offering multiple product options rather then the single solution of no-lapse
UL. Other products to consider would