Lesson Information:

Introduction: Flexible Premium Indexed Universal Life (FFIUL) insurance is a versatile product that combines the benefits of life insurance with the potential for cash value accumulation based on the performance of a selected index. This lesson aims to equip agents with the knowledge and skills necessary to effectively present FFIUL to clients, highlighting its unique features and benefits.

Key Features of FFIUL:

• Flexible Premiums: Policyholders can adjust their premium payments within specified limits, providing flexibility to match their financial situation.
• Indexed Growth Potential: The cash value of the policy can grow based on the performance of a selected market index, offering the potential for higher returns compared to traditional fixed-rate policies.
• Death Benefit Protection: FFIUL provides a death benefit to beneficiaries, ensuring financial security for the policyholder’s loved ones.
• Tax Advantages: The cash value accumulation within the policy grows tax-deferred, and policy loans can be taken out tax-free, under certain conditions.
• Customizable Options: Policyholders can choose from various riders and options to tailor the policy to their specific needs.

Benefits of FFIUL:

• Growth Potential: The policy’s cash value has the potential to grow based on index performance, offering higher returns while protecting against market downturns with a guaranteed minimum interest rate.
• Flexibility: Policyholders can adjust premiums and coverage amounts as their needs change over time.
• Protection: Provides financial protection to beneficiaries through the death benefit.
• Tax Efficiency: Offers tax-deferred growth and potential tax-free access to cash value.

Selling Points:

• Financial Security: Emphasize the dual benefits of life insurance protection and the potential for cash value growth.
• Customization: Highlight the ability to tailor the policy to meet the client’s changing needs through adjustable premiums and coverage amounts.
• Market Participation: Explain how the policy allows for participation in market gains without the risk of direct investment in the stock market.

Tailoring the Presentation to Client Needs:

1. Understanding Client Goals: Begin by discussing the client’s financial goals and concerns. Identify their need for life insurance protection and interest in potential growth.
2. Personalizing Benefits: Relate the features and benefits of FFIUL to the client’s specific situation. For example, if they are concerned about market volatility, emphasize the guaranteed minimum interest rate.
3. Addressing Objections: Be prepared to address common objections, such as concerns about premium flexibility or understanding the index growth mechanism. Use clear, simple language and provide examples.
4. Providing Examples: Share success stories or hypothetical scenarios to illustrate how FFIUL can benefit clients in different life stages or financial situations.

Presentation Techniques:

• Engage with Stories: Use real-life examples and success stories to make the benefits of FFIUL relatable.
• Visual Aids: Utilize charts and graphs to explain how the index-linked growth works and the impact of flexible premiums.
• Interactive Discussions: Encourage clients to ask questions and express their concerns to foster a two-way conversation.
• Clear Explanations: Avoid jargon and explain concepts in simple terms, ensuring the client fully understands the product.