Red Flags in IUL Policies and What to Watch For

So here you go. To avoid life insurance poachers, some red flag. If they use language in their marketing, in their zoom calls with you or across the table in your home and they say things like, it's an investment, alternative, whole life or iul, that's a red flag. If they present it as an alternative retirement income plan, that's a red flag. Watch out. Conversation needs to stop, Full stop. What do you mean? If the poacher, the life insurance agent, does not perform a needs analysis, some sort of a financial review, if they, if they go straight into policy without understanding who you are as a person, without getting your financial information, without understanding your financial situation, without getting full contact, without asking lots and lots of questions, that's a problem, that's a red flag. So if they don't perform a needs analysis is what it could be called or financial analysis, a financial review, a deep dive, some sort of process, they don't have that. Not it. If they do not provide the full policy illustration, full stop, red flag. What's going on? I need the full policy illustration sent to my email. I want an electronic digital footprint. This will protect you as the agent. Unfortunately, the reason why these two are going to lose in this case, or probably already have lost, because it's now 20, 25, they probably didn't have a digital footprint so that they can go back and say, no, this is what my agent told me and this is what they told me to do and this is how I did it and it didn't work out, you would be able to most likely have a much stronger case and you could probably go after the agent, the firm, all of it. So you need a digital footprint. When you're working with agents, one of the most important things is having the full policy illustration. This is what you're going off of. Think of a policy illustration as like an inspection before you purchase a home. If you're going to buy your. You're going to buy your home. You buy a piece of property, you're going to perform an inspection on it to see what's wrong, what's right with the property. That's what a full policy illustration is. You're getting a quote based off of your age and health rating and policy design. You can see the full terms of that agreement and after careful review and strategy, you say yes. You then are able to submit that policy to the insurance company. Now, the reason why you want a full, full copy of that illustration is so that the agent can't do a bait and switch. The agent can easily tweak numbers to make his or her commission higher under actual submission. So you've got an illustration, that's one thing, but it got submitted as something else once it's approved. A lot of it today is all digital. So here you are thinking you've got this design, but when it's actually approved and all said and done and you go to sign and fund, it's different. Even if you thought you put in the same amount, let's say 10 grand. But if you don't pay attention to that full policy contract and the approval and the health rating and how they submitted it, it could be totally different numbers compared to the initial quote. So that you don't get screwed. You're able to see the contract, the policy illustration, match the two numbers up and make sure they're identical. If not, you got a problem. So a lot of the reason why some agents, especially IUL agents, often not all of them, but the IUL agents that I have personally went through their process, they do not send me the full policy illustration. I always wondered why they wait all the way to the approval period. And even then I got to get it from like the company, the insurance company, to fully get it, not the agent. So that's a problem that's out of compliance. So they don't provide the full illustration. That's a red flag, full stop. If they try to do a one call close. This is something that you might see on TikTok with the sales agents and things like that. Life insurance is not a one call close. It is not. When it comes to life insurance, it is not a one call close. I don't care what anybody says. I'm going to set a standard again. I'm only seven years in the industry. I'm 29 years old. There's probably people in there, 20, 30 plus years that do one call closes. And they've been doing that forever. Shame on you. Shame on you. That's how I feel. Shame on you. I don't care if you're selling term. I don't care if you're selling final expense. I don't care if you're selling whole life. IUL Ul Gul. I don't believe in a one call close. Absolutely not. That's selling before serving. That's a red flag. So if you're talking to someone, you get on a call with them and immediately they're just showing product to you. What are we talking about? They know nothing about your numbers. They know nothing about who you are as a person. They know nothing about your situation. Can I tell you personally, in my process, I have clients where we may go four to six months before we put a single life insurance policy in place. I'm making sure my clients fully understand what they're getting into. And sometimes a year goes by a year and a half, and they forget some things, but they know enough and they value what they're getting and they stay committed. And it's within their affordability and potential to keep these policies intact in force. I'm not going to have an issue, okay? So I take extra time, I make sure my people understand because I plan on being in this industry for the rest of my life. And I'm on social media. Reputation is everything. Reputation is everything. You lose that, you're done. Takes a while to recover from reputation failure. Okay, so one call, close. That's a red flag. Selling before serving, red flag. And if they don't show the guarantees, that's a red flag. So if they're just specifically showing you life insurance illustrations without providing the guarantees, that's a red flag. It.