How to really get the best life insurance solution for you, not your sales agent.

How to really get the best life insurance solution for you, not your sales agent. How to get it right the first time; the insurance companies depend on you NOT getting it right the first time.

The life insurance industry is based on the know you, like you and trust you model. New recruits are required to create their Project 100. It is a list of family, friends, neighbors , relatives, and people who will see you. They are trained to sell their company’s products in order to keep their jobs. Often times, the people you trust the most, don’t get it done right for you the first time.

- Top 10 Manufacturers of life insurance products

• Northwestern Mutual: Is a Mutual Whole Life Company with a large proprietary agency sales force
• New York Life: Is a Mutual Whole Life Company with a large career agency sales force
• Mass Mutual Financial Group: Is a Mutual Whole Life Company with a large career agency sales force
• Guardian Life: Is a Mutual Whole Life Company with a career agency sales force
• Prudential: Has a small career sales force
• Equitable Financial: is a publicly traded company with a large career agency sales force
• John Hancock: Does not have a career sales force
• Nationwide Insurance: A Mutual Whole Life Company with no career sales force
• Lincoln Financial: Has a small career agency sales force
• Pacific Life: Is a Mutual Whole Life Company with a small career agency sales force.

- Distributors of life insurance

• Life Insurance manufacturers with sales forces
• Independent Marketing Organizations with no direct sales force
• Direct distributors to licensed insurance agents with no direct sales force
• Online technology companies with quote engines and employed licensed sales personnel.

- Independent agents who work with Independent Marketing organizations (IMO)

• Fiduciary advisors such as IRI’s and RIA’s
• Suitability advisors such as insurance agents subject to new SEC regulations
• Best interest advisors such as insurance agents subject to new SEC regulations
• Financial advisers are insurance agents who are allowed to use this title by law.
• Certified Financial Planners who are fiduciaries but need to disclose clearly and up front if they are operating     or not operating as fiduciaries.

Conclusions:

• Insurance industry is dominated by Mutual Whole Life Companies.
• Proprietary sales forces are not going away.
• Manufacturers are becoming more possessive and controlling of what their sales force presents and sells.
• Manufacturers who also have captive agency sales forces can never be fiduciaries.
• Having a consultant rather than a salesperson who gives you options, advice, and transparency can lead to better results.