78. (VUL) Sell the protection, not the returns

 

If a prospect can well afford to invests millions of pesos in a VUL, it only means that he is a successful "earner" whether from the practice of his profession or running his own business, this is typically the normal definition of high net-worth clients

The high net-worth market is the most rewarding segment of our practice as it gives us the opportunity to conceptualize, design and recommend customized solutions to match an HNI's unique financial goals, not to mention the more meaningful rewards we get for a successful conclusion

Unique in the sense that our usual sales proposition of investing for education or retirement may not be of interest to them, so the challenge would be to understand how our product's various benefits can be structured in a way that would add value to their portfolio

Our typical approach is to position our products in terms of the benefits of a managed investment portfolio, how it is diversified, managed by professionals, access to foreign markets etc etc etc

In my early experience in my comeback as a financial advisor (joined Inlife June 2022), I sadly discovered that selling the VUL on the basis of possible superior returns coming from the benefits of a managed portfolio DO NOT WORK!

The simplest explanation for this is maybe because of the attractiveness of the HNI market, they have already been called upon by other advisors and even their bank (bancassurance), they have already heard all of these before and what we are telling them is just the same

I am now working on several cases using approaches based on the unique needs of the HNI market, I will blog on them as soon as any of these result to a sale

Stay tune..

#acgadvice