Your best leads are staring you in the face: 6 ideas for mining files
His smartphone alert reminded the advisor that it was time to make the call. He had done a search on five-year levelterm policies that were in their fourth year and this was one of them, a 69-year-old woman with $2 million of coverage.
By converting in the fourth year, the new premium would be $46,932. If she waited and went with the standard product, the premium would jump to a little over $61,000. When they talked, she immediately saw the advantages of doing the conversion now: lower cost and no additional underwriting.
This producer recognizes that to grow his revenue, he must look for new clients and, at the same time, mine his book of business for sales opportunities from existing clients.
Before you start rolling your eyes, see where this is not going. Every producer has been told to go back to existing clients for referrals. It’s a good idea, but it doesn’t work well for many producers, and that’s why it’s good to look in a different direction.
Best of all, everything a producer needs is readily available from the advisor’s own client files, insurance company records, and an MGA. While prospecting for new clients is essential, producers are their own best resource for growing their revenue. Here are ideas for going about it:
1. Review smoker policies to see if clients have stopped smoking. Since so many people have given up smoking, there’s a good chance that some of your clients have quit.
Start by contacting them by letter, email, text, or phone indicating you arereviewing client life insurance policies. If there are clients who have quit, look for a new and better policy or at least try to change the existing policy to non-smoker. This is good news for the clients and can free up dollars for a new policy or even a different product. Once you have a beneficial solution, get back to the clients with the good news.
2. Review your impaired risk cases, both placed and not placed. As you know, underwriting is changing constantly, so that it can be far more forgiving than in the past, which is another reason for reviewing your client files to see if there are opportunities to either update or replace an existing policy.
Prostate cancer is a good example in which a high PSA can qualify for a great rate that would have been rated or a decline in the past. There have been underwriting changes with diabetes, sleep apnea, weight loss, blood pressure, cardiac conditions, and any policy with a flat extra premium.
There are also underwriting changes when it comes to family history. In the past, there could be an issue with an offspring of a parent who died before 60 years of age from cancer or a heart condition; now, this may not matter.
3. Monitor and mine clients’ term life policies. Among missed opportunities, term life policies rank near the top. Because advisors look for motivated clients, here are several possibilities for those with term policies.
Make it a practice to contact all level term life policyholders during the last two years for conversion to a permanent product. Lifestyles and health conditions change. Since term policies have an expiration date, this creates an opportunity for a client to leverage the investment in the existing policy for new, more appropriate benefits.
An infrequently used scenario is to sell your term instead of letting it lapse, if it’s convertible, it’s possible that there is an insurance company that will buy it, pay the client and they pay the premium as the beneficiary. It’s another way for advisors to help a client and open the door for additional business.
Also, carriers report that many term life policies remain in force after their level term period ends. The premium jumps to a much higher amount; yet, surprisingly, people continue to have payments withdrawnfrom their bank account. Showing them how much the premium has risen and will continue to rise provides an opportunity to reestablish the need and offer an option for another level term or permanent product.
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