Recent stock market slump may have your clients nervous. Here is an alternative that provides safety and upside potential to consider.
speaker 0: 0:00
Welcome to this special edition of Coop Scoop. I wanted to take time today to address something that might be helpful when you're having client conversations due to the recent, shall we say, market activity being very wild when you're having your client conversations, they may be expressing a little concern at this point, With the severe drop over the last two weeks, one could argue that we were just in a correction vase. But with the radical drop in yesterday's market, one now questions whether we have reach bear territory, which is being thrown around at this point, something to consider when you're having your client conversations in regards to positioning, a lot of you told me that you've been working to get your client's prepared for a downturn in the market, which means that you are not quite as aggressive or prepared for the upturn when it does happen. So I wanted to share with you a product. Two of them, actually, that are both offensive and defensive in nature, and that is Index ul products. Now my annuity team would say that the annuities fixed indexed annuities are also in this camp, but I'm on the life side in my life, products have a higher upside than the annuity products. So I'm gonna talk to you today about those, and this is something to introduce into your client conversations. If they do, express some apprehension or fear as to where their money is at this point down, referring to two specific uncapped you l's that Highland has access to and these Air two big players in the industry nationwide and secure Ian these air not just your typical index, you Els. These are powered by a nexus engine, a nexus that's key. Highland has a unique distribution on these products, and not everyone has access to them. Index You Els are both offensive and defensive in nature, offensive in that thes air. Uncapped traditional. You wells have a cap somewhere between nine and 13% which when the market runs away big, your client does not participate fully not the case with these products. Defensive. All ah, you wells have a zero floor or they used to. Somehow you Wells have paid to play strategies with fees introduced that enhance the upside, but also create a drag or a reduction in the accumulation value. On the downside, not so with these products. Zero fees. So the accumulation value will never go down based on market performance. Now a lot of people know that, but there's a couple strategies that you could implement that make this even more so. For instance, within the products, there are different segment links one year to year three year strategies that you can put into play, that this helps diversify the returns into there policy and being very careful in language here because this is not an investment, it's a life insurance policy that has accumulation value. So let's be clear on that. But there is significant accumulation value. So typically, a 12 or three year strategy can diversify your clients at risk and produce some significant accumulation values. But there's also something in there that can diversify them yet further that a lot of folks are unaware of. And that is how you pay the premium. So if we want to create different segments, a lot of times we take a new index, you well, and we put it on an annual pay. This puts all the money into the policy and allows for the significant accumulation because all the money is there right from the start, but it also creates a single point for a segment. If we were to diversify the payment motile into, say, quarterly, we create four different segments within the strategy. If we go even further and goto a monthly, we create 12 different segments on an annual basis in the strategy. So we not only have the ability to diversify within 12 or three year time frames, but we have the ability to diversify on the segment starting points. So if we went quarterly, this gives you 4/4 during the policy year in segments starting. So now we've diversified, and we don't have to worry about market timing as much because we know we're going to be dollar cost averaging, if you will, trying to use the language you're familiar with into the starting of the segments. So if summer is slower than we start at a lower starting point, so what we've done within the Index UL is to take both the offense and defense and put it into place simultaneously because now we have created segments for different time frames and different starting points within the policy. So these are two products that you have access to for your clients that can give them peace of mind. Now, you New York Advisors. I can't sell these in New York, so we've got to find a non opportunity to use another state if we want to try to put them in these products. Thes uncapped products have a unique place in your client's portfolio. These are two uncapped strategy products that significantly change the accumulation potential for your client. Now a lot of you are thinking, well, it's a life insurance policy and these take forever to get issued. I may have missed the boat. Not necessarily true. Both of these companies have an electronic application and not only the Elektronik application, but they haven't expressed underwriting. And if the client qualifies, they can have a policy issued much, much quicker than traditional underwriting and paper applications. We've heard 72 hours in some cases, so we can have a policy issued in your client's money going toe work both offensively and defensively fairly quickly for them compared to traditional underwriting. Traditional paper applications reach out to me via email or phone call, and I'll be happy to discuss in detail Maura about these products. My email addresses See Lewis at highland dot com. C for Cooper. L e w I s at Highland h i GH l a n d dot com or 98 023334199802333419 Thanks.