Life Insurance Insights

Ensure you stand out and remain top of mind with your clients and prospects by creating a differentiated service offering.  We all know that the key to attracting and retaining clients is in the service that we deliver and the relationships that we have.  Sometimes it is simply just better follow-up. Use these 3 tips to enhance your follow up.

1. Leverage Technology

A Customer Relationship Management System (CRM) should be the foundation of your technology engagement platform. Using your CRM effectively is critical to your follow-up strategy by creating tasks and activities with reminders.

If you are using your CRM to its fullest, ensuring that your data is accurate, it can help you keep track of discussions, dates of contact, meetings, emails, and important dates. A CRM can also help you navigate the best times to contact clients and leads for the best possible results.

2. Be Attentive

Clients should be able to see that you’re thinking about them and have everything under control, which will keep them satisfied and provide future referrals.

One of the most important client relationship differentiators is knowing as much as you can about them all while considering their time and information needs. A simple thing like knowing their favorite food/wine/how they like their coffee can make a big difference.

Sending meeting confirmations and reminders, not canceling meetings, and taking good notes helps demonstrate your value.

3. Use Preferred Communication Method

Have you asked your clients how and when they like being communicated with? Do they prefer calls, emails, or text messages? Have you asked them for permission to email them educational information? Creating and maintaining interest in you, your firm, and the solutions you provide leads to more meaningful conversations which in turn results in more business and referrals.

If you would like to discuss this in more detail, please call me at (781) 726-6808.

— By Peter Kaplan, Vice President

As we inch our way to the other side of this pandemic, we see a big change in the way clients view their advisory relationships. Having experienced the roller coaster ride of their lives in the last year, many are beginning to question the value of financial advice that isn’t tied to their larger financial picture. Clients are becoming more attuned to their personal goals, emphasizing financial security and their legacy desires for their families. Professional advisors who aren’t prepared to have this conversation with their clients may find themselves alone on an island.

Professional advisors are best positioned to understand their clients’ life insurance needs—they know what assets they have, and they have a good idea of what they need to protect. Yet many don’t have that conversation with their clients. There are several reasons for this. The advisors may not be comfortable with that conversation, or they’re not comfortable discussing life insurance solutions.

Based on our experience, we know that many clients may not be comfortable with that conversation either, which is why they typically don’t initiate it. But, when approached as part of their overall financial plan, understanding the crucial role life insurance plays in a family’s financial security and legacy, clients invariably welcome the conversation.

If Not You, Then Who?

It’s almost certain that one day, your clients will have that conversation with someone. Why shouldn’t they have it with you? If not you, then who? Why would you allow another advisor into the picture? Why not start a collaborative relationship with a life insurance specialist or the specialists at First American to work with you as part of your advisory team with you as the quarterback?

It’s What Clients Want

More than ever, high-net-worth clients are eager for a more integrated approach to their life planning—they just don’t know how to go about it. It takes a collaborative effort that encompasses the planning expertise across multiple disciplines integrated into a single coordinated plan. In other words, it takes a team approach, headed by a professional advisor skilled at assembling a collaborative team of advisors to consolidate the complete planning needs of your client into one synergistic process.

First American was built on that premise. Your high-net-worth clients need to have that critical conversation, but you may not be fully equipped to walk them through the process. With an experienced First American life specialist on your team, you’re bringing the expertise, skillset, and consultative approach your clients need to solve their problems.  Please contact me to find out how we can assist you.

— By Ken Shapiro, President

As they say, “The devil is in the details.” If this true, then we need to look no further than a life insurance policy to find the evidence. This is why it’s worth understanding a decision by the U.S. Supreme Court back on June 11, 2018. It confirmed a Minnesota statute that retroactively annulled a life insurance beneficiary designation due to a divorce.

The facts of the case are straight forward, nothing fancy or complicated. A couple gets married and the husband buys a life insurance policy and names his wife as the beneficiary.

Down the road, they divorce without any mention of the policy. Then, the husband dies, without changing the beneficiary, and the former wife is denied the benefit, even though it may have been his intention that she would receive it. Most state statutes contain an exception if the divorce decree requires the insured to maintain the coverage for the benefit of the spouse. Other common exceptions are if the divorced spouse owns the policy, or if the divorced spouse pays the premium on the policy.

Over the last three years, I have come across this issue with two clients as I was doing Annual Policy Reviews and have had them review the beneficiaries to make sure their intentions would be fulfilled.

Since the Supreme Court handed down this decision, several states have adopted similar statutes, while others are preparing to do so. This is a good time to check to see how it stands in your state.

Do you have clients who have been divorced or contemplating divorce? Would a non-probate divorce revocation statue affect who might receive the death benefit proceeds? If there were ever a good reason to get serious about doing Annual Policy Reviews, this is it. It’s a way to avoid unpleasant surprises, including possible errors and omissions issues. If the intent is for a former spouse to remain a beneficiary, clients can have an attorney bring it into compliance with the current statute.

First American Insurance Underwriters helps financial advisors design and implement the most appropriate insurance solutions for their clients.

We specialize in Life Insurance, Long-Term Care, Disability Income, and Annuities solutions for personal and business planning. We can be contacted at 781.449.6800 or internalsales@faiu.com.

— By The Internal Sales Team

Even those who say they want life insurance don’t get around to buying and point to one reason: “the dread factor.” They picture the experience as time-consuming, drawn out, difficult, and worst of all, expensive. Most assume life insurance costs far more than it does.

In other words, good prospects are often turned away and lost because of inaccurate and damaging perceptions. Don’t let this happen. Wow clients with an experience that’s far better than what they expected.

The place to begin is recognizing that most problems start with the life insurance application. This is where clients can become irritated and doubts creep in. The reason why this happens is simple: Although there can be mitigating circumstances, the biggest problem is applications with incomplete and inaccurate information. When this occurs, the process goes on-hold. As every agent knows, this is when clients become concerned.

Having to go back to a client for additional information or answers to new questions disrupts the sales experience. Besides, it’s embarrassing and can do unnecessary harm.

Happily, there’s a way around this problem using the new electronic applications or drop ticket process. Since electronic apps reject paperwork that’s not in good order, this is a way to make sure carriers start the underwriting quickly. Then, if an exam and APSs are needed, the carrier can avoid delays by seamlessly initiating these during a telephone interview.

Speaking of APSs, medical records can be a key factor in how fast an offer becomes available. To avoid unnecessary bottlenecks and troublesome delays, it’s prudent to determine which medical records, if any, will be required and then go ahead and obtain them.

Clients are more sensitive to delays and interruptions than ever—and less forgiving. They expect the professionals they work with to get it right the first time.

And from your viewpoint, this means taking the steps that satisfy clients who then are pleased to talk positively and make referrals.

— By Tony O’Kussick, CLU, Director of Operations