How to prosper in the year ahead: 6 opportunities with high potential for new sales
4. The transformative power of electronics
While a company such as Amazon has put customer expectations on a super-fast track, the life insurance industry has been slow paced, to say the least. As advisors know so well, it can take weeks — and often longer — to get policies issued.
But not now. Today’s electronic platforms take an app through processing, approval, and delivery from weeks to a couple of hours. It’s not an exaggeration because we do it every day.
Using electronic platforms is not just another way to do business; it’s the only way, particularly if an advisor want to serve the needs of the 79 million Millennials that encompass the largest single group of consumers. They expect convenience and ease in doing business. No nonsense; just get it done now.
It’s also the way to get ahead of the competition, to serve more clients, and get paid faster.
5. The sales power of simplified issue programs
Predictive modeling, the process that draws upon both traditional insurance data and non-traditional sources for making underwriting decisions, has resulted in simplified issue products that require answers to a few health-related questions and no physical exam. On top of that, predictive modeling underwriting is faster and more thorough.
This is one of the most dramatic changes in the life insurance industry over the last decade. In that time, simplified issue has gone from offering policies with low face amounts to robust options up to $1 million.
Even though premiums may be slightly higher, such simplicity and speed are appealing to a growing number of consumers.
6. The cheapest term life policy may not always be in a client’s best interest
Buying decisions are generally based on what customers know. The less they know about the options, the more they tend to base buying decisions on price, and price alone. Getting the lowest price can make sense. But, such a decision can change if the customer knows more.
Term life insurance is a case in point. Most consumers don’t know much, if anything, about life insurance, including term products. This is why the two words that come to mind regarding term life are these: “It’s cheap.” But it doesn’t stop there as the reasoning goes. If cheap is good, cheapest is best.
Advisors can easily fall in the trap of thinking like consumers by coming up with the lowest possible price to close sales quickly — another missed opportunity.
Consider these questions: Does the lowest price leave customers with good options to convert a term policy? And, how might they benefit if they paid a few dollars more?
When thinking like an advisor — rather than like a customer — life agents can win more business by educating clients and giving them options so they can make informed decisions.
Rather than focusing so much attention on finding more new leads, life agents can be better served by looking more carefully at the opportunities they may have missed.
• More from Kenneth Shapiro: A life insurance producer’s 4-point plan of success
Kenneth A. Shapiro is President of First American Insurance Underwriters, Inc., a Needham, MA-based national life brokerage firm specializing in coaching growth-oriented producers and providing them solutions to their complex cases. He can be contacted at [email protected].
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