Partnering with Realtors

We are currently working these realtor concepts with a couple of different agents, and just want to share it—in case you aren’t already doing something similar:

Realtor Strategy #1: Work with a realtor, or realty agency, and give the realtors some term-life insurance applications to put into each of the document folders when their clients close on a house sale.  Then have the realtors say something like, “now that you just spent $500,000 on a 20 year mortgage, you might want to make sure you have enough life insurance to pay it off”. One realty company is selling about 25% of all of their new home owners.

There are a couple of great term policies for this scenario. Banner Life has a great one that is flexible on underwriting, is priced very well for premiums, and easy to apply for. American National also has a policy, but it is not as flexible—although it does have built-in critical care, terminal illness, etc. riders—and that is rare for a term policy.  So you might want to have both in your back pocket.

Realtor Strategy #2: Have realtors offer annuities to older clients after they sell their big empty-nest homes and downsize to a condo or assisted-living unit.  The realtor says something like, “now that you have all of the excess cash from the sale of your big house, you might want to consider putting it into something without market risk that will give you better-than-average returns…without an annual tax hit”.

You will also have a great relationship with a realtor that you can refer to your clients when they need one.

DOL Update: Do You Have A BIC Selection Program In Place?

The letters B.I.C. stand for Best Interest for the Client, and it is at the heart of the Department Of Labor matter we are all concerned about. The DOL wants to make sure that the financial products we recommend to our clients are in the clients’ best interest, and not our own. So, some new software systems have been created to take our clients through a series of financial questions to help them determine which financial assets would be appropriate for them, and which ones would not. Specifically, these objective tools can identify whether or not a life insurance product would be in that client’s best interest. If so, then you are free to move forward with selling them an annuity, or other life insurance asset. If not, then you will need to review the information gathered by the BIC assessment program and determine what the disqualifying factors are.

This is not a bad thing. This will simply add another element of validation to our financial recommendations, and that is great. But, you will need to have your software BIC program in place and know how to use it. At TWH, we have already invested heavily into having access to two of the best new BIC client assessment programs that have been developed so far. And, best of all, we were able to strike a great price for our agents to use the systems because we got on board with the software development process and helped fund the project from the start.

We are just now beginning test runs with the new programs, and will be able to begin showing you how they work later this month. So, watch for an upcoming message offering training sessions, free trials, and subscription and utilization details. Or, give us a call if you have any questions. 800-200-9194