MARKETING
Gearing Up from page 16
Case management
“ Also , just getting these larger cases in and out of underwriting successfully can be a challenge . At my firm , we are fortunate to have a world class underwriting manager , Karen , who stays on top of all the case complexities , which really helps . And by the way , if you don ’ t have a great case manager , why not consider hiring an underwriting case manager to work remotely like we did . Karen is in Houston , and she is the best ! We don ’ t need her very often , so using her has reduced our expenses even though we are paying her quite a bit more per hour . This kind of arrangement may not be for everyone , but it has sure been working out well for us !
“ Added to the normal challenge of getting larger cases in and out of underwriting , we also have complications for ownership of the insurance . The insurance contracts are owned by either a ‘ single purpose LLC ’ or an irrevocable life insurance trust , so this means having an attorney involved to get these ‘ wrappers ’ properly drafted . There is access to the cash values via trustee loans to the insureds and the requirement for independent trustee goes away after the loan is repaid in year 16 or so . In either case , these are bankruptcy remote structures , and we are generally using a trust company in either Nevada or South Dakota to obtain the more favorable trust lifetimes ( 365 years in Nevada and unlimited in South Dakota ) than we have in California or most other states .
Speed bumps ahead
“ Moreover , one other ‘ speed bump ’ that we have not experienced before is pulling together all of the banking requirements for the lender . Sometimes this goes very smoothly , but other times the financing paperwork requirements are cumbersome and difficult . After all , it is a bank we are working with , and they are , understandably , cautious with making loan commitments of $ 400,000 , $ 500,000 , or $ 1,000,000 a year for five to seven years !
“ For me , who started in the life insurance business more than 40 years ago , it is fun to come back full circle to writing larger cases … and fewer . With 67 % of my revenue this year coming from advising clients with the management of their assets , it enables me to be selective on these leveraged life cases . These can easily take from four to six months ( or longer !) to get issued , so I would not advise making this your sole source of income .
“ Still , it is becoming a very nice supplemental income stream for us . We stretch our compensation over five years , so we make more over time regardless of whether the bank and client continue to fund the contracts .
“ It is truly an ill wind that blows no man good — and with interest rates as low as they are , and likely to stay relatively low for a very long time — this is a wind that is quite favorable for a whole lot of reasons !”
Barbara A . Pietrangelo , CFP , CLU , ChFC , LUTCF , CLTC , RFC , came to The Prudential Insurance Company of America in 1992 , where she ’ s advanced steadily in her career . She is Past President of the Million Dollar Round Table Foundation and member of the Million Dollar Round Table .
For Ms . Pietrangelo , the best sales and marketing ideas working right now are simple and direct . “ The most productive technique I ’ ve used in the past two years is one that is surprising to some colleagues — call and see your clients !
The most productive technique I ’ ve used in the past two years is one that is surprising to some colleagues — call and see your clients !
Barbara A . Pietrangelo
Quality time
“ With the combination of COVID , new regulations , and just overall angst in the world , many advisors have just stopped reaching out . Yet , it ’ s especially important during these times to connect with your clients , offering to help their family , friends , and colleagues . There continues to be a tremendous number of people looking for advice and guidance on how to achieve financial health . My business continues to grow , as I ’ ve simply continued my outreach and relationship-building during this time .”
18 Perspectives Q4 2021