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Why Our Life Insurance Acquisition Process Outperforms Traditional Methods

posted by TrueNorth Financial Strategies on Thursday, June 13, 2024

​Life insurance is a critical component of financial planning, but many clients face frustration and subpar results when dealing with traditional life insurance agents. At TrueNorth Companies, we have refined a life insurance acquisition process that is more sophisticated and effective, ensuring our clients receive the best possible outcomes. Here’s how our approach differs from the standard practices in the industry.

The Limitations of Traditional Life Insurance Agents

Traditional life insurance agents often face significant limitations:

• Limited Carrier Options: Many agents work exclusively for one insurance company, limiting the options they can offer. Even those with access to a few outside carriers often default to their primary carrier to meet production goals and qualify for benefits or incentives like company trips.
• Bias and Conflicts of Interest: Agents may be biased towards their primary carrier to maintain their benefits and meet sales targets, which can lead to pushing products that might not be the best fit for the client.
• Insufficient Risk Assessment: Traditional agents frequently skip comprehensive health assessments, leading to suboptimal pricing and coverage options. This can result in clients either overpaying for coverage or being declined without exploring all possible avenues.

TrueNorth’s Superior Life Insurance Acquisition Process

Our process at TrueNorth Companies is designed to overcome these limitations and provide our clients with tailored optimal solutions. Here’s how we do it:

1. Discovery Call: We start with a discovery call to understand the client’s goals and needs. This foundational step ensures we are aligned with the client’s objectives from the outset.
2. Comprehensive Health Assessment: Unlike traditional agents, we conduct a thorough health assessment to identify the top life insurance carriers that align with the client’s risk profile. Different carriers price their products differently based on various risk factors, making this step essential.
3. Carrier Negotiation: We leverage our relationships with multiple top carriers to negotiate the best rates for our clients. This competitive approach ensures our clients receive the most favorable terms.
4. Life Insurance Portfolio Design: We design a tailored life insurance portfolio that considers the client’s specific needs, risk tolerance, and financial goals. This includes evaluating different types of policies with varying risk profiles, expense ratios, crediting methods, and levels of guarantees.
5. Client Education: We educate our clients on the pros and cons of various options, ensuring they make informed decisions. Some policies may have surrender charges, while others are fully liquid. Some are seen as an expense, while others can appreciate in value over time.
6. Formal Underwriting and Application Process: We guide our clients through the formal underwriting process, ensuring all applications are accurately completed and submitted.
7. Ongoing Management: Our commitment doesn’t end with policy placement. We provide ongoing management of the insurance portfolio, an essential step often neglected by traditional agents. This ensures the client’s coverage remains optimal over time and adapts to any changes in their situation.

A Case Study in Excellence

Consider a recent example where our approach made a significant difference. A business owner client had a term policy lapse due to a lack of management and advice from his previous insurance agent. When he reapplied for coverage with his agent’s major P&C company, his application was declined due to health changes. The agent’s secondary option also declined the policy.

The client then turned to us. We built his medical file, applied our comprehensive process, and successfully obtained a standard offer from a top carrier. This outcome was significantly better than what his previous agent could achieve, highlighting the effectiveness of our professional and methodical approach.

At TrueNorth Companies, our life insurance acquisition process is designed to deliver superior results. By focusing on thorough assessments, carrier negotiations, and ongoing management, we ensure our clients receive the best possible coverage tailored to their unique needs. This approach not only provides peace of mind but also demonstrates the value of a sophisticated, client-centric process.

(Securities offered through Lion Street Financial, LLC (LSF), Member FINRA & SIPC Investment Advisory Services offered through Lion Street Advisors, LLC. LSF is not affiliated with TrueNorth Companies, L. C.) 

Tax and Legal services are not offered by Lion Street Financial, LLC., or Lion Street Advisers, LLC.