In this video
I want to talk about 2 things
that have helped our business
tremendously
and I'm going to focus on
IBC Global
which provides high cash value
life insurance policies
what has helped our business grow
to break it down into 2 items
it's been the actual policy
and then also customer service
those are the 2 things.
Now in respect to the actual
life insurance policy
that we talk about all the time
and it boils down
really to the cash value
because it's people's money
you are dealing with.
We always talk about policy design
how to minimize expenses
optimize cash value
it's people's money
they pay attention to their money.
So in the early years
we had a ton of success
with engineers
and people that really
focused on the cash value
and we still do
because they look at it and say hey
I look at your content
and I see the same policy
with the same company
and I've got a lot more value
that's what I'm interested in
and that's pretty straightforward
those are people
that are focused on the numbers
like myself
I have always been
very analytical in that respect.
But then
we've got the customer service
and this is really meant for people
in the business
or if you're considering
opening a policy with us
this speaks to things you will get
when you work with us
hopefully you will get
depending on who you talk to
but we train on these things
on a regular basis
is as follows.
When it comes to customer service
if you are in business
these things are critical
number one is pretty straightforward
but it means being honest and upfront.
Now I want to be clear here
when I say honest and upfront
we can blend in the second point
transparent
being honest about how things work
and also upfront
you know let's say honest and transparent.
I'll give you a prime example
so many people when it comes to
cash value life insurance
will look at a dividend rate
and claim this is what you're earning
on a policy
or they'll make the claim that hey
you're earning a 6% dividend
you're earning 6%
and when you take a policy loan
it's a 5% cost to borrow
you've got a 1% spread
and policy loans are great
so easy to take
you get the constant compounding
and that's very attractive
6% dividend
5% loan rate
yeah, like sign me up.
But then at the same time
is that honest and transparent?
Well yes it's being honest
you could say that I have a 6% dividend
and a loan rate of 5%
but at the same time
if you tell someone that
and really don't break down the numbers
you're not being that transparent
or upfront.
Here's what I mean
is when you look at
an actual life insurance policy
a dividend rate is always what?
I say this frequently
a gross rate that is credited
after the insurance expenses
where you might see
a net internal rate of return
just the net growth of 4.5%
now it's still fantastic
effective tax-free yield
which hey sign me up with no risk
but if you have a 4.5% cost to borrow
I mean a 4.5% net IRR on your policy
net growth rate
and you're borrowing at 5%
do you still have that positive 1% spread
that you thought existed
on a whole life insurance policy?
No
now you've got a negative 0.50% spread
it makes sense to borrow elsewhere
and especially this is the case
if the net IRR is less than 4.5%.
So my point is
be honest about it upfront
be transparent upfront
and you could say I was honest
like I said what the dividend rate was
but if you are a consumer
and you don't know the business
in and out
there's a big big difference
a consumer sees the term dividend
and common sense would tell them
that's what I'm earning on my policy
where in reality
it's not what I'm earning on my policy
so I want the net numbers
and then I feel like the agent I'm talking to
or the company I'm talking to
is being honest with me
they're being transparent
they're not hiding something
that's kind of a gray area to say
well I did tell you this
but yeah you have to dig in more
to find out is actually this
no like be transparent
be upfront with that stuff.
It's like when I go buy a service
from some company
and they say hey
it's going to cost a $1,000 per month
then I get the bill and it's $1,300 per month
and they say well there's these additional
service charges in here
I'm like you didn't tell me that
you got to be upfront
if they would have told me that
then there's no potential issue.
So honesty and transparency
so important when you're in business.
The next one
is the most important thing
especially if I'm working with someone
and I talk about this
I've mentioned this in past videos
the attorney that I've hired
and that we refer a ton of business to
I've got no financial incentive
or relationship with her group
Elizabeth Morgan
she knows her stuff
but she cares
and I've expressed that
when I've talked to her
to others
it's apparent
if you ever see her talk on a podcast
or if you've got to speak with her
you know she cares
she listens to people
like that is so so important.
So if you are in business for yourself
you're speaking with others
make sure you care about them
show them that you care.
And try and recall this
this point will help you a lot
if you struggle on this
because you view it as
hey I'm in business
to make money in a sense
to grow
but you have to care for your clients.
If you have a focus on making money
your focus can be diluted
from the customer
if you're trying to sell
what works best for you
to make the most money
not what sells
or not what is in the best interest of the client
people will sense that.
If you sell what the customer wants
truly what's in their best interest
the money will come
yes you may make less initially
that's our whole business model
we design policies
that are designed for
minimum compensation
and the reason why isn't to say
we design policies
for minimum compensation
the reason why
is when you look at the actual data
the real numbers
guaranteed values
historical data
like those minimum commission policies
have delivered the greatest
consumer value
cash values
and long-term death benefits
it's like why would I not do that?
Because if I don't do it
then I got to worry about
them coming back to me saying hey
you showed me option B
then I just saw option A from someone else
they've got more money than you
or I would have had more money
than what you showed me
so like why would I do that?
If that makes sense.
The point is
if you care
you're not going to do that kind of stuff
they're not going to have to do
some big song and dance afterwards
to justify why you did it
like that happens all the time.
So do you care?
That's the most important thing
in my opinion
so getting away
from the data and the numbers
and really getting into the emotional side.
And then the big one we'll close with this
not negative
and I've always been big on no negativity
it drives me off the wall
I try not to do it
and it's really from how I was raised
and just some principles
you've got the saying turn the other cheek
that goes such a long way.
When it comes to negativity
I'll share something with you
a number of agents
at our company have expressed to me
something that I've gone through
a number of times
but recently a lot of people have elected
to work with us with our company
and they had been
speaking with other competitors
and the competitors
when the potential client brought up the fact
that hey I'm speaking with IBC Global
immediately went on the offense
and started attacking us
I don't know why
like people always do that in business.
But my point here is
is these clients heard that
and they said alright
thanks for letting me know that
they left those other agents
they didn't start a policy with them
they said I'm not working
with someone like that
that is unprofessional in my opinion
so do not be negative
as it can do a couple of things for you
(1) it'll hurt you
it'll make you more just negative
down all the time
it's not worth it
just from an emotional standpoint
that's my opinion
and then secondly you lose business
like it's not going to hurt
you might win a couple by
scaring people away
from working with someone else
but think of it this way
if you talk to Joe
and then Joe says
just a bunch of negative things about me
hey don't work with Steve
he's horrible
he's done all this stuff
that man shady stuff going on over there
but then you talk to Steve
me
and you say alright like
I got to know you
you're not like that at all
what are you going to think?
You know Steve.
Same thing if I talk to you
then I talk to Joe
and Joe bad mouths you all day long
but then I'm like no
I know that person
they're not like that at all
Joe, have you ever spoken with that person?
No, but I heard some things
like hey don't be negative
that's just going to compound south
we want to compound north
compound interest
not compound depreciation
call that negativity.
Anyway 2 main things
policy this has helped our business
policy design
really and the top top quality companies
and then customer service
and I use the word customer service
because I couldn't think
of anything better to put there
I'm just going to call it
communication
engaging with other people
do things right
just treat others
as you would want to be treated
the golden rule
if you do that
you'll do perfectly fine.
In any event
I do hope that
this video provided some value
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and we will talk to you in the next video.
I hope this helps.
Hey guys Steve Parisi here
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