LifePro Financial Services - News -
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Published on: 10/23/2004
Last Visited: 3/12/2006
Crediting methods constantly are being improved, and companies are adding features to make products more client-friendly, such as more liquidity, shorter surrenders, better death benefits, higher growth opportunities, and bonuses. Bo Johnson, chief marketing officer, Financial Independence Group, Inc., Cornelius, N.C., says the EIAs' biggest advantages are the floor interest rate and that they have no fees associated with them. Mr. Johnson says producers should avoid products with too many moving parts.They might look good at first, but the producer should pay attention to where the moving parts renew during subsequent years. Wholesalers can help by bringing value-added services to the table.Mr. Johnson says marketing companies have become the preferred distribution for EIAs."The insurance companies focus on product, and we focus on distributing these products and adding value," he says. Financial Independence Group (FIG) assigns three private specialists to each adviser who works with the company.FIG also offers automated services that help cases get issued and paid.Mr. Johnson says the company has seen success with the new FIG Business Builder Program.And FIG's most popular services, including the Producer Paycheck Marketing Reimbursement Program, EIA mini-CD-ROMS, and a seminar system, are available as part of its Ultimate Advisors Pack. EIAs are changing, and most of these changes are good for the consumer.Producers should avoid some products, however, that are getting less advantageous for the consumer but have great "sizzle" up front.Mr. Johnson thinks the best recent changes are those that give the consumer more choices of methods and have fewer moving parts. "Showing clients a past history of what they could have done is a powerful sales tool," Mr. Johnson says."If there are too many moving parts, it is really hard to show results from past history and be in compliance." Overall, however, Mr. Johnson thinks the EIA market is positive. Carriers make many EIAs from which producers may choose. Michael K. Deardorff, senior vice president, RBC Insurance, Kansas City, Mo., says