When selling life insurance, it’s easy to convince ourselves that the lowest price gets the order. Even though a client may make it clear, price is what they’re looking for, we may be selling them—and ourselves—short.
The average top marginal tax rate in the 70’s was 70.17%; in the 80’s 48.4%; 90’s 36.72%; 2000’s 37.44%, and 2010-2020 38.4%. While the current 38.4% sure looks to be on the low side, we have just spent $2.3 trillion on COVID-19 (that is trillion with 12 zeros!).
How has the insurance industry adapted to the Coronavirus? Insurance carriers have placed restrictions on coverage for some clients. Some carriers are postponing older clients, as well as those with impairments that make them more susceptible to COVID-19, such as heart disease and chronic respiratory disease. One carrier recently postponed any proposed insureds age 70 and over. Those aged 60 to 69, who are rated, are also being delayed at this time. Despite these restrictions, some positive changes have developed in the life insurance industry. Carriers have responded by moving towards a “fluidless” underwriting process.
We all learned that the shortest distance between two points is a straight line. Well, it appears that some advisors take it literally when selling life insurance to the affluent prospects. “Just let me get in front of well-to-do prospects and I’ll take it from there.” Therefore, some advisors fail when attempting to break into the affluent life insurance market. They dream of getting face-to-face with affluent prospects and walking away with signed applications. This rarely comes true. Advisors who want to be successful in the affluent market space, unlock the door to winning large cases by using three keys
Anyone who has been involved with life insurance knows this is an industry that’s not first in
line when it comes to change. While such caution is an important part of life insurance history,
the story is quite different today.
Since many advisors are not familiar with annuities, they may shy away from marketing them to prospects and clients. This is understandable since life insurance and annuities play two different roles in a client’s financial portfolio.
Millennials come up with all sorts of reasons for their lack of interest in Disability Income protection. Some just don’t want to be bothered. Others say they can’t afford it or will look at it later. A few will say, “I’m all set. My employer provides it.”
Getting it right at the start
How to motivate life insurance buyers who are faced with higher costs than their healthier counterparts daunts many advisors. The question is anything but theoretical since nearly 50 percent of current cases are classified as impaired risk.
Life insurance sales is not for the faint of heart, particularly since many advisors find it difficult approaching prospects with “sensitive” health questions. It interferes with and can disrupt the sales process, making it both difficult and uncomfortable for advisors and clients.
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Advisor interest in the foreign national space is on the upswing. This is good news since it’s arguably the most lucrative market in the life insurance industry. It’s also good news that more U.S. life carriers are comfortable with foreign national business and are actually welcoming it.
But, that’s just one part of the story. Getting into it isn’t easy. Click here to read more.
Time kills deals. The life insurance business is no exception.
If the formal application process takes longer than normal, the client can get frustrated and lose interest. This is why broker general agencies seek ways to improve efficiency and cut the time from formal application submission to placement. It also improves the experience for the proposed insured and gets the commission paid quickly.
Insurance companies also benefit from a more streamlined formal application process and underwriting review.
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