New EIUL Regulations Download

Thank you for your interest in downloading the 3-page proposed EIUL illustration regulations. They will blow your mind.

They are also not in understandable English and we’ll be doing a webinar explaining them in a few weeks.

Click here to download the proposed regulations in a PDF format.

To learn about the upcoming in person 2-day EIUL educational seminars, click here.

If you are worried about how these new restrictive EIUL illustration regs. will affect your ability to earn a living, I recommend you take action to protect yourself.

I’ve been pounding the drum for 2.5 years telling agents that if they want to create a sustainable and profitable business going forward they should run to the 2-day sales training offered by www.pomplanning.net.

The average advisors using the POM Planning sales platform are doubling their fixed sales and are picking up $2-$4 million in new AUM each year. New advisors have gathered over $500 million in new AUM in the last three years making it one of the fastest growing RIAs in the industry.

In light of the fact that IL recently deemed FIAs as securities, this further strengthens my position that every advisor should become Series 65 licensed. See my newsletter: IL Court Holds that FIAs ARE Securities and NAFA is Freaking out! To read, click on the following link: www.pomplanning.net/il-deems-fias-securities

Roccy DeFrancesco

Read More

EIUL Design and Marketing Webinar

Thank you for your interest in watching the webinar Roccy DeFrancesco, JD and Jon Salomon did titled:

How to Properly Illustration and Sell EIUL (Equity Indexed Universal Life) Policies

If you are selling or are thinking of selling EIUL, you need to watch this webinar.

To watch the webinar on recording, click on the following link: https://attendee.gotowebinar.com/recording/8142703103793584386.

Also, while the one hour webinar is definitely worth watching, if you want to learn EIUL inside and out, you should attend our two-day in person training. It’s the only unbiased training in the industry today.

Click here to learn more.

Read More

Webinar Schedule

Thank you for your interest in our webinar schedule.

Below you will see a list of our upcoming seminars. Click on the title of each of them to sign up.

At the top of the list are our past webinars that were recorded.  Click on the appropriate link(s) to sign up to view/listen to them on recording.

On RecordingHow to Properly Illustrate and Sell EIUL (Equity Indexed Universal Life) Policies. Click here to view it on recording.

On Recording: History of UL, VUL, GUL, IUL. Rise and downfall of UL what went wrong, can it happen again?  Click here to view it on recording.

On Recording: Back casting tool explained–what crediting rates are realistic for each carrier. Click here to view.

On Recording: How do interest rates effect options budget and how does the options budget effect crediting rates/caps. Click here to view it on recording.

On Recording: Loan rates and bonuses. The difference between fixed, variable and wash loans. How are loan rates set? Click here to view it on recording.

On Recording: College funding utilizing EIUL as a college savings vehicle. Click here to view it on recording.

Thursday, June 18th- Premium Finance- Clearly defined with clear parameters on who is a fit and who is not a fit. Net worth requirements, liquidity requirements, estate preservation only?

Thursday, July 16th- Business planning concepts, with c corps Section 79, 412e3, Captives, Veba

Thursday, August 20th- Be your own Banker vs Tax Free Retirement concept. How are they different, how are they the same, pros and cons of each

Thursday, September 17th- Simple TFR sales pitch to use when prospecting and meeting with clients

Thursday, October 15th- Liquidity riders and early cash value? No load products for 1035

Thursday, November 19th- Annuity Life Arbitrage. Using the free withdrawal on an annuity to fund life insurance for estate planning purposes

Thursday, December 17th- Executive Bonus Plans- Deferred Comp, Golden Handcuffs

Read More

New Lawsuit Against Selling a VUL

New Lawsuit Against Agent for Selling a VUL


Before getting started, I wanted to let everyone know about a WEBINAR we’ll be doing on January 15, 2015 at 1:00 pm EDT. The webinar will be on How to Properly Illustration and Sell EIUL (Equity Indexed Universal Life) Policies. In 2014 I saw more abusive illustrations and unsuitable EIUL sales than any year prior and I know many advisors can benefit from attending this webinar.

To sign up for the webinar (if you can’t make it live, sign up anyway and view it on recording), click on the following link: https://attendee.gotowebinar.com/register/4630734321463222530.

I also wanted to remind everyone of the ability to download the 2014 EBRI Retirement Confidence Study. It’s 34-page study with a bunch of great statistic on what the American worker is doing to plan for retirement and the fears they have about retirement. To download the study, click on the following link: www.pomplanning.net/ebri-study.


                Before I give you the highlights below, I strongly recommend that everyone read the 11-page complaint. Reading it will help you understand how we lawyers think when it comes to suing advisors who sell products inappropriately.

                To read the 11-page complaint, click on the following link: www.eiultraining.com/agent-sued-for-vul-sale

                Full Disclosure-the moral of the story is that it is vital to give full disclosure when selling products to clients. I preach full disclosure in all of my books (heck my books are full disclosure documents that should be given to clients to help with the full disclosure process). Selling to clients who don’t truly understand the products they are buying is a great way to get sued and that’s what appeared to have happened in this case.

                Facts and Allegations from the Complaint 

Paul Larson, who is the CEO of Larson Financial Group, LLC (LFG) wanted to get into the physician market. I can appreciate this as the author of the #1 book in the industry to help doctors protect and grow their wealth (The Doctor’s Wealth Preservation Guide).

In 2010 Paul contacted Liza Capiendo who was the president of the Young Physicians Organization (YPO). He wanted to sponsor events for their members and help the YPO raise some money. He agreed to pay the YPO 20% of the initial fee of any new YPO member that signed up with Larson Financial.

In 2011 Paul put on dinners for YPO members where he touted his firm’s expertise in planning and investment for physicians, and handed out sales materials portraying its employees as financial experts who only worked with physicians. In fact, LFG uses the registered trademark: “The Physician’s Specialist® ‘We specialize in helping physicians protect and accumulate assets.'”

Liza and other members became clients of LFG. At Liza’s first meeting on April 8, 2011, Paul Larson and LFG agent, Chris Clark, had Liza write $190,000 and $10,000 checks to TD Ameritrade to set up various accounts, including an IRA, a 401k, and a brokerage account.

Once the accounts were setup, Liza was told to buy life insurance as an “investment.”

Liza and the other Plaintiffs were told that the insurance would be a great “tax shelter,” and that “at some point” there would be no further premium payment. They were not advised of the actual fees and risks associated with maintaining such policies, other than those for LFG services. LFG also told Plaintiffs that that they could borrow against, or pull money out of, the account. That was later discovered as not true.

LFG sold Liza a total of $14,500,000 in life insurance (death benefit).

The Defendant life insurance companies used by LFG were John Hancock and Nationwide.

The allegations are that “Defendants failed to disclose fully, up-front and in plain English, the charges, fees and risks associated with the policies. It was not until the policies were placed in-force and substantial premiums – subject now to massive surrender charges – had been paid, that Defendants disclosed the true charges and fees of the policies.”

The following from the complaint is really interesting: “Defendants John Hancock and Nationwide acted negligently by failing to protect the Plaintiffs from unsuitable and unnecessary life insurance policies with extremely large premiums.”

So the insurance companies were sued for not providing oversight on what were large policy sales. I’ve never seen this type of suit before and the ramifications in the industry, if Plaintiffs are successful, could be far reaching.

As time went by, “the investment of the policies were not as Larson Financial had represented. The policies actually required numerous fees that were previously undisclosed to Plaintiffs, and the premiums were an increasing burden. Plaintiffs could not even surrender their policies as the surrender charges were too high.”

                Side note: This is the reason you want to discuss and offer clients high cash value policies. If you are not offering high cash value policies and want to learn about them, simply e-mail me at roccy@thewpi.org.

Finally, in late 2013, after pouring roughly $300,000 in premiums into her policies, Liza consulted an independent expert who told her to reduce her premiums to the minimum.

Mitigation of damages will be a big issue in this case.

Four Counts-defendants were sued based on the following:

1) Breach of Fiduciary Duty
2) Fraud
3) Professional Negligence
4) Unjust Enrichment

My thoughts on this case

Based on the complaint, I’d say the Plaintiffs have a good shot at winning. If the Defendants didn’t disclose the surrender charges properly, if they didn’t offer a policy with a high cash value option, if they didn’t deceive the client as alleged, etc. then it would be much more difficult to prevail.

The claims against the insurance companies are very interesting and I’d think will be difficult to make stick.

Full Disclosure and Client’s Best Interest

This seems to be a classic case of advisors taking advantage of doctors who don’t get into the specifics of what they are buying. If the agents fully disclosed the fees, surrender charges, etc., the client may not have purchased the policies. If they did disclose the fees, etc. then it would be much more difficult to bring such a lawsuit.

Giving advice to people is simple. All you have to do is fully explain the pros and cons of what you are selling and always give advice that is in your client’s best interest. If you do that, you won’t have to worry about these types of lawsuits and you should sleep well knowing that you did the best you can for your clients.

Another 2-Day EIUL Training has Finally Been Scheduled (Orlando, FL)

It is a few months overdue, but we finally scheduled another 2-day EIUL training seminar.

The training will take place in Orlando, FL on February 23-24 (and yes I will be at the training as one of the speakers).

To download the 2-day agenda and sign up form, click on the following link: www.thewpi.org/pdf_files/Orlando.sign.up.pdf.

To learn more, go to www.eiultraining.com/training.

Roccy DeFrancesco, JD, CWPP™, CAPP™, CMP™
Founder, The Wealth Preservation Institute
144 Grand Blvd
Benton Harbor, MI 49022

Author of: The Doctor’s Wealth Preservation Guide; The Home Equity Management Guidebook; The Home Equity Acceleration Plan; Retiring Without Risk; Bad Advisors: How to Identify Them; How to Avoid Them; and Peace of Mind Planning: Losing Money is No Longer an Option.

Read More

IRA Rescue Using 72t

IRA Rescue Using 72t

The following are a few slides from the IRA rescue using EIUL presentation an IMO is peddling. 

As you read in my newsletter, not only can’t I make the numbers work, I can’t even get them to come close.

This concept is a sure fire loser from a financial point of view and if you want to read about those real world numbers (vs. the seemingly made up numbers from the slides below), click on the following links to read a few of my past articles.

Another IRA Rescue-Life Insurance Sales Strategy to Avoid

Another IRA Rescue-Life Insurance Sales Strategy to Avoid! (a different article than the one above)

Roccy DeFrancesco, JD




Don’t be fooled by these numbers. Just because they appear on a PowerPoint presentation doesn’t mean they are accurate. They are not! If you can make the above numbers come out right using an excel spreadsheet and any EIUL illustration, please contact me immediately and I’ll make you a rock star in my next newsletter.

Read More

College Planning Using EIUL

            Thank you for your interest in learning the math behind using cash value life insurance for college planning.

            Unfortunately, most IMOs and insurance companies are not properly educating insurance agents how to “properly” use cash value life for college planning. Many agents put forth illustrations that are pushed to the max to make them look like CVL for college planning can work well (or worse, that it’s a no lose proposition).

            Unfortunately, when you use real world or more realistic illustration assumptions, CVL does NOT work well for the average client who can’t afford to overfund a policy both for college planning and for retirement planning.

            To download the 10-page summary in a PDF with the math behind five different example clients, please click on the following link:


            If you are mainly interested in good marketing tools/platforms that have ethics, please click on the following link to learn about $25,000+ worth of such tools you can get access to for FREE: http://www.strategicmp.net/page/life/marketingtools

Read More