Imagine a marketplace where your competitors always tell the truth. But seriously, what would such a marketplace be like?
For one thing, you wouldn't have agents claiming their products offer Mercedes benefits at Kia prices.
For another, competitors would stop insulting your license type or business model. (Sure, all captive agents sell junk private-label policies and all fee-only financial advisors are models of ethical propriety.) And you'd never again hear a competitor tag you with the wrong rating or suggest your company is on the brink of insolvency (when it's flush).
Sounds great, right? But here's the problem. Advisors are human, and they're working in a business that demands results at almost any cost. When imperfect people face pressure to close sales, they invariably stretch the truth. Unfortunately, this hurts everyone around them:
• It takes money out of the truthful agent's wallet (or pocketbook) and forces the person to waste time debunking lies.
• It harms clients because the liars convince them into buying low-quality products that may leave them dangerously under-protected.