Product Compare - An insurance wholesaler’s perspective

“What I really like about the new Product Compare tool is how well it supports the sales process. Once the needs analysis is complete and the insurance need has been established, Product Compare really is effective at helping the client choose which

insurance solution will best meet their needs from a cost and benefit perspective.”, Todd Sysak, Senior Director, Individual Insurance Sales, BC and Alberta.

Todd has been a strong proponent of Product Compare since its launch a year ago. He has promoted it aggressively to the advisors he works with and many of those advisors have now incorporated it into their insurance sales process as well.

“How I’ve used the tool has been an evolution” Todd says. “When it was first launched I used it to support low-cost temporary term solutions. Now I’m using it with most insurance situations I’m involved with.” He has also been very surprised at how effective the tool is at supporting permanent insurance sales. “I am often very surprised what the client ultimately buys. I am sure the client is going to pick the lowest premium solution but once they look at the other solutions presented and consider the Internal Rate of Return (IRR) they often pick the permanent quick pay solution”.

Todd has also received positive feedback from advisors. “They really like the package and that the Net Present Value (NPV) and IRR analysis is on one page. It really makes it easy for the client to compare the different insurance solutions being presented.”

Advisors have also mentioned to Todd that they feel using Product Compare may help them deal with the client in the future under certain circumstances. “Let’s assume in the future the client meets with another advisor and that advisor questions why they purchased permanent insurance instead of a potentially lower cost term insurance policy at the initial point of sale. The Product Compare output (or is it a report?) will help the advisor deal with this issue” says Todd. “The advisor will be able to go into their file and show the client the Product Compare presentation that was used at the time of sale.

They will be able to show the client that term insurance was one of the product solutions presented but not the one the client ultimately chose.”

Todd feels Product Compare can be used in all types of planning situations. It is effective with more basic term focused situations and with very complex situations where quick pay, maximum funded solutions apply. Says Todd, “Even though Product Compare does not address issues like product flexibility or the client’s investment risk profile, it still is a very effective planning tool because of its focus on comparing costs and returns (IRR at death). I really believe it is one of the best things we have recently received from the Advanced Sales team.”

If you would like more information on Product Compare including a sample illustration contact your local Manulife Wholesaler.

Date: September 2013