How to prosper in the year ahead: 6 opportunities with high potential for new sales
If life insurance advisors have a common complaint, it’s never having enough sales leads, enough people to talk to, or enough business opportunities. Whether someone is new to the business or has been in it for 30 years, their complaint is always the same: “I need more people to talk to.”
While new leads are critical to an agent’s success, many agents miss sales opportunities that are so close they never see them. Capturing these potential sources of income can transform a good year into a great one. Here are six of them with high potential.
1. The appeal of linked benefits
A client is interested in long-term care insurance and you come back with premium that almost sends the person into cardiac arrest. The price is shocking, way more than the prospect expected or can afford, and who, disappointed, writes it off and you write off the sale.
Not necessarily. Here’s where a linked benefit, a long-term care rider in this case, can get the coverage the client wants at an affordable price and you make the sale. It’s an example of clients getting more than they ask for — whether it’s term life or permanent insurance, they have a death benefit plus the opportunity to access the face amount for long-term care.
Clients embrace linked benefits because they add value by offering living benefits at a modest increase in cost.
2. Broader opportunities for legacy planning
Most people dream about “leaving something” to family members or a particular charity, but it never materializes and remains only a fantasy. As a result, they don’t really think seriously about how to do it. To do so is a waste of time and probably depressing.
It’s also another missed opportunity because many middle-class Americans can leave far more than they dare to dream about. They not only can feel good about what they can do, but they can feel good about themselves for doing it.
The advisor’s task is to show clients how what seems impossible is actually affordable and achievable. With the right life policy, many are surprised and pleased to know they can create a legacy that fits their financial situation.
3. Life insurance as an asset class changes the game
As long as we allow others to put the purchase of life insurance in the “expense column,” we aren’t doing our job. Anyone managing a client’s assets needs to recognize life insurance policies are assets in a portfolio. While this isn’t a new idea, it’s an important one for both consumers and life advisors.
A properly designed life insurance policy not only has a 100% guaranteed payoff, but it also has current value, something most consumers don’t understand. In other words, it’s an assetwith cash value that, if necessary, they can access.
But, most importantly, many prospects are in the dark about the attractive Internal Rate of Return of life insurance policies. Think about it, deduct the taxes and expenses and what do you have? A rate of return after taxes and expenses “north of 5%.” That’s hard to match with most other conservative investments. And, if this isn’t enough to prove that life insurance is an asset, policies can be sold if they’re no longer needed.
It’s a powerful story that clients need to hear. We need to let them know that purchasing life insurance is not only a sound investment, but it’s an prudent way to diversify their portfolio.
• More from Kenneth Shapiro: A life insurance producer’s 4-point plan of success
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