Category: Financial Concepts

The Whole Truth About Direct Recognition vs. Non-Direct Recognition

When trying to explain policy loans, and Direct Recognition vs. Non-Direct Recognition life insurance companies, we like to begin with a discussion of ownership. In a mutual insurance company, policyholders are the owners of the company. Whole life insurance is not like car insurance, home insurance, or other types of property insurance where you funnel money in and may never see it again. Yet life insurance frequently gets lumped together with all other insurance by agents and clients alike.  Helping a client to understand that they’re an owner of the

Read More

The Huebner Foundation: Foundational Life Insurance Education

“There is nothing more uncertain than life, and nothing more certain than life insurance.” Solomon Huebner It’s easy to get caught up in the more exciting parts of life insurance, like the infinite banking concept. After all, it’s exciting to think about leverage and cash flow and building your own “bank.” Yet it’s important that we don’t neglect the foundation of life insurance, which is protection and certainty. Whole life insurance is foremost, insurance. And it is the only type of insurance that is guaranteed to pay out—which is one

Read More

How to Build Trust and Make Sales

Dan Sullivan of Strategic Coach recently posted on LinkedIn:  “My definition of selling is two-fold. The First part is that you intellectually engage the person you’re selling to with a future desirable result, something that would be an improvement or achievement in their life. And it’s not what you want for them—it’s what they want for themselves.  The second part is that you then enable them to emotionally commit to that goal and then to courageously take action to move forward and achieve the goal. And if you do both

Read More

Understanding the Participation Ratio in IULs

Earlier this year, we wrote about how to illustrate IUL returns in the Accumulation calculator. The reality is, IUL’s are sold as something they just aren’t—there are fewer guarantees, and a lot is still left up to risk.  Now, we have a new button that illustrates another “lesser-known” provision of an IUL policy: participation ratios/rates. The insurance company sets the participation ratio, and is non-guaranteed, which means it can change from year to year.  A participation rate controls how much dividend a policyholder will receive. For example, say the index

Read More

License to Buy vs. Permission to Spend

In the financial industry, and in Truth Training specifically, there are two concepts with similar names that we often discuss. The first is the “License to Buy” idea, and the second is “Permission to Spend.”  Both are important topics, both result from whole life insurance strategies, and we must understand both so that we can help our clients. What is a “License to Buy”? Whole life insurance, as a savings vehicle, provides benefits beyond that of your typical savings account. Not only is the cash value account liquid—it provides growth

Read More

Todd Quotes, Part 4

As we wrap up the first Truth Training of 2021, and the last one in the current Paradigm Life building (they’re moving locations), it feels fitting to add another round of quotes. We’re fortunate to work with some of the brightest minds in the business, and we love sharing nuggets for those minds who could not attend. Or those who could and want to review! Unless otherwise noted, quotes are from Todd. Quotes on Truth “We all want to be right. If you’re really seeking Truth, you have to be willing

Read More