September 23, 2022
  • September 23, 2022

Volatility and Life Insurance | ThinkAdvisor

By on August 24, 2022 0

What do you want to know

  • Some customers who want more money have life insurance.
  • Some of these customers could sell their policies to investors.
  • Agents and advisors could help clients determine the value of policies.

As fall approaches, it’s helpful for agents and advisors to do an overall assessment of their annual goals and adjust their sales and marketing strategies accordingly.

Based on conversations with growers, agents, advisors, and customers, here are some resolutions for increasing sales, fees, and better customer relationships in our current unpredictable marketplace.

1. Cut costs and earn revenue.

What probably prompted the need for some mid-year course corrections were the changes in the financial markets.

While we may have started the year optimistically, the economy has taken major turns, and inflation and rising costs are hitting seniors hard.

We get a lot of calls from agents whose senior clients tell them they’re worried about rising prices.

Many seniors are trying to figure out how to continue to maintain their lifestyle as they age during retirement.

They desperately want to feel more secure financially.

Seniors review their life insurance policies and wonder if they still need the coverage.

The kids are grown or maybe the reason they bought the coverage has changed. Some clients have lost their spouse, divorced or decided they no longer need coverage.

As the cost of living rises and wallets shrink, they begin to feel the pinch.

And because seniors have been through recessions before, they probably know it might be a few years before things change – so they start to wonder why they have their current coverage.

In situations like this, it’s a missed opportunity, and potentially a disservice to the customer, not to inform them of their options.

The secondary market for life insurance policies is strong right now, and no customer should let their policy expire without first getting a policy appraisal.

It can be “found money” and an opportunity for agents to earn some extra cash.

Freeing up funds from poorly performing policy can create a windfall of new investment opportunities – putting money in motion.

2. Work smarter, not harder.

Every year, and frankly always, we must strive to maximize the productivity of our client relationships and plans.

We must maximize our sales capacity and our sales efforts with our customers and prospects.

One way to do this is to always be on the lookout for ways to sell multiple products to customers and therefore earn more fees by working smarter, not harder.

My advice to agents and advisors is to add a life insurance policy appraisal to their overall toolkit.

A policy assessment is a simple way to work smarter.

It’s easy to get started because all you need is some basic customer information and an in-force illustration that can be quickly analyzed to determine the value of an existing policy and whether the case will qualify on the secondary market – without involving your customers with the traditional “lifetime settlement storm” of paperwork.

A policy appraisal can help clients identify a new source of income to help them plan for retirement.