There is No Magic in Insurance

There are a lot of ads for insurance out there. With so many ads, and so much clutter in the insurance marketplace who should you do business with?

The reality is there is no real magic with insurance. The insurance one agent sells is the same stuff you can buy from just about any other agent out there. As long as it comes from a reputable insurance carrier you really can't go wrong. So why so much hype and advertising about "my product is better than your product" or "my company is the best"? It is kind of like claiming that Tiger Woods is the best golfer in the world just because he uses Nike clubs. If that were true you or I could take his clubs out on to the course and keep pace right with him. Obviously that isn't the case. If you were trying to become a champion golfer would you rather have Tiger's clubs, or his coach?

Agents that focus only on product do a great disservice to clients. The client may end up with an okay policy, but they are falling far short of their potential. Insurance that is properly understood and utilized can be an extremely powerful tool for both protection and wealth building. Everyone knows that it can protect you and your family, but it can also be used to enhance your existing assets, create new assets, and build wealth.

It is not the product that makes this possible, it is the coaching. As stated above, there is no magic in insurance. If you don't know how to coordinate your insurances with each other and with your other assets, it doesn't really matter how great your insurance product is. Like our example above, if you buy the same set of clubs that Tiger Woods uses, but don't get coaching, your golf game will not be any better than it was before.

It is also very important to understand that there is no such thing as a good or bad policy. This fact is so drowned out by all the shouting in the industry about whether term or whole life is better, or how great indexed ULs are, or how VULs are the best. Insurance policies, whether they be term, whole life, universal life, VUL, or any other type are simply neutral. Not good or bad. However, policies can be used well, or they can be used poorly, depending on your situation and what you are trying to accomplish. I have seen plenty of instances where a fine policy was horribly misused or was placed in a situation where it really didn't belong.

In today's troubled economy your insurance protection is critical. It is also vital to make sure your money is being utilized as efficiently and effectively as possible. Coordinating your insurances with your entire financial picture is the best way to do this. Not only will you be effectively protected, you will also put yourself in a position to enhance and build wealth at the same time.

I am a recovering financial planner. After being in the industry for several years and being very successful as a traditional financial planner, I had an experience in 2004 that changed everything. I lost a big client. Oh yeah, this was a big case. And I lost big time. I was working with a client friend of mine who owned a successful business that was just starting to turn the corner into really big profits. The short version of a long story is that another guy in the industry got the business and blew me away. And he did it using the same products I was trying to sell my friend. He was just using those products, and coordinating them in ways I hadn't ever dreamed of. The first thing I did after losing the case was to call the other agent and ask him what he was doing. That set off a big learning experience, and now here I am 5 years later teaching my clients the same lessons the other agent used to beat me so soundly with my client. Just financial principles that work. That's all. To learn more visit my website, LightSource.

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