Just like a misplaced comma on a bank statement can cause confusion, a misplaced word in your sales rationale can create unintended expectations and unwanted scrutiny. Clear, balanced sales rationales help clients understand the key benefits, considerations and tradeoffs of a recommendation while also supporting a smoother suitability review process. Here are four ways to strengthen your responses:
- Respond to all parts of the question.
Read each rationale prompt carefully and make sure every component is addressed. If the form asks why the product is suitable, how it aligns with the client’s objectives, and what the client’s financial situation is, your response should cover each point, not just the first one. - Explain why the transaction is occurring, not just what is happening.
Instead of simply stating, “The client is surrendering the enhanced death benefit rider” explain the reasoning behind the recommendation. For example: “The client is surrendering the enhanced death benefit rider because they have life insurance policies in place for legacy purposes. It no longer makes sense to pay for the rider.” - Balance the benefits with the considerations.
Every recommendation involves tradeoffs. If you describe the potential advantages, also acknowledge the relevant risks or limitations. For example: “The client is seeking long term growth potential and understands the investment will fluctuate in value and could experience periods of loss.” - Qualify vague or subjective language.
Words such as strong, protection, conservative, stable, or best can mean different things to different people. Add context that explains what those terms mean in this client’s situation. For example, replace “The client seeks downside protection in this RILA” with “The client seeks a degree of downside protection in this RILA subject to the buffer.”
Want to write it right the first time? ESI’s Direct Business Suitability team is here to help! Contact us at ESIDBCasepreview@nationallife.com or 800-344-7437, option 2, 5, 2.
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