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Prior to the pandemic it seemed insurers and financial companies were questioning the value or need for external wholesalers. Generally the trend had been to utilize a help desk or sales desk to service advisors. In the short term this seemed like a way to reduce expenses, travel, seminars, salaries, etc. Now that meeting face to face has been virtually eliminated, it would seem insurance companies are questioning why they even have someone external to meet with advisors. It would seem, they may think things will never go back to normal. I personal hope they are wrong. 


As you have probably experienced once to you got used to one carrier or company it is really easy to keep using them. You become comfortable. Almost exactly like how my wife refused to switch from cable to streaming, we both knew there were better more cost-effective method out there, but the fear of the unknown prevented her from agreeing to switch. Until they made her mad by raising the bill and locking us into another contract! So, moving from external wholesalers to a help desk or 1-800 number may work in the short run because even if their favorite wholesaler is gone most advisors will continue to work with a company.


What does this all mean, well, like my wife (and me) most advisors are similar, they will not or do not make a change unless there is a really good reason. This really raises the question of how you will find another company to work with if you current one messes up a big case or changes their product. Unlike my cable TV options there is not a lot of easy to obtain information about life insurance products or companies available on the internet. If the insurance companies do not have wholesalers to call on you, how will you obtain information regarding which companies to work with? It does not seem likely most advisors will call up insurance companies to request information. Then what, with out that personal relationship with the wholesaler you really are just a number (like my wife and I were to our cable company) to that insurance company.

Work with a Life Insurance Partner

The solution is to develop a relationship with an insurance partner. BGAs and FMOs have always relied on insurance wholesalers, generally they are just throwing contracts out to anyone. Advisors Resource aims to become a partner with the advisors we work with, to develop that personal relationship and to understand your business. So that when products change, and companies come out of favor we will always be there to support your business.

Schedule a Time to Speak with our On-Staff CFP

Jordan Pence
Post by Jordan Pence
October 21, 2020