What do Isaac Newton, Hamilton the Musical, and Life Insurance have in Common?

What do Isaac Newton, Hamilton the Musical, and Life Insurance have in Common?

Every action has its equal opposite reaction. This notion can be attributed to Newton’s third law of motion, or Hamilton the musical’s song, Washington on Your Side. This premise doesn’t just hold true to laws of motion or for what is going to happen to Alexander Hamilton now that Burr, Madison, and Jefferson are all going to team up to take down the 18th century protagonist. This holds true for life insurance policies in this volatile market.

Let me explain:

A lot of people are unaware that certain types of life insurance policies are truly living, breathing investments. And when there are market fluctuations for the worse, that can spell trouble for policy owners and their beneficiaries.

  • Action: Market Volatility
  • Reaction: Negative Effect on Life Insurance Policies

That is why, especially when markets seem to move wilder than Kevin Bacon on an illegal dance floor, keeping an eye on these policies is so vital as they can get lost in the shuffle when having a holistic wealth management conversation.

That is why, having tools and/or a plan around policy management is SO important. And it doesn’t have to be hard either. In fact, the life insurance conversation can be the spark for a larger wealth management chat.

For instance, one customer at Proformex, seeing what has transpired in the market, created a custom report within our platform. They leveraged filtering to get down to policies that they wanted to reach out on:

People nearing retirement with VUL or IUL policies (the policies most affected by market volatility)

By having all their policy information in one place across all their carriers, this customer was quickly able to set up meetings with all their clients that fit these criteria and have holistic wealth management conversations.

Clients were grateful that this advisor was looking out for them, and some of these conversations even led to fantastic outcomes for everyone:

  • Added another policy for a different family member
  • Policy surrendered to use the cash for other investment purposes
  • 1035-Exchange used to move to a GUL product

Hopefully now when thinking about market changes, or the catchy showtune in the middle of Act Two of the greatest musical written in the 21st century, you’ll think to check on those protection assets that can have an equal opposite reaction to what is happening in the market.?

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