During a recent meeting of the Income Replacement Task Force at MDRT headquarters,
Roger A. Seim, MSFS, CLU, a 36-year MDRT member from Maple Grove, Minnesota, posed this
scenario: You have a good relationship with a client and learn they plan to replace a product
they have with you. What would you do?
These are three insights offered by MDRT members on the panel.
1. “Rather than going and replacing a product, they should look at augmenting what they already have. Ethical issues could arise if the client cancels a policy and doesn’t qualify for a new one with the new company because they have to qualify all over again medically. Then the new advisor could be held liable, and the client won’t have coverage.”
— Alphonso B. Franco, RHU, RCIS, Victoria, British Columbia, Canada, 23-year member
2. “I ask the client to send me what he is being offered so I can analyze it carefully and help them understand the objective differences between the policy he has versus the new product. I then explain to the client what the replacement means and its implications for the policy owner.”
— Dorin Roxana Israelian, Buenos Aires, Argentina, 16-year member
3. “Never become defensive. Always be helpful, and put forward your value proposition. Advise the client accordingly on the replacement and wish them the best, but ensure they are aware you’ll always be there with regards to their overall financial planning. And even if they leave, they can drop in again at any time.”
— Kobus Kleyn, CFP, Midrand, South Africa, 5-year member
