Halfway through the year, it’s always 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 producers, agents, advisors and clients, here are three mid-year resolutions for better client relations in our current bear market.
Reduce costs and earn revenue
The evolution of the financial markets makes certain course corrections necessary in the middle of the year. Although we started the year with optimism, the economy has taken major turns. Inflation and rising costs are hitting our older customers hard.
We receive many calls from agents whose senior clients tell them they are 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. Their 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 dwindle, older clients are starting to feel the pinch. And because older people have been through recessions before, they probably know that 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 money. Unleashing funds from underperforming policy can create a windfall of new investment opportunities – putting money in motion.
Work smarter, not harder
We strive for maximum productivity from our client relationships and plans. One way to do this is to 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. Getting started is easy. All you need is 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 in the secondary market – without involving your customers. in the traditional “life settlement”. storm” of paperwork.
A policy appraisal can help clients identify a new source of income to help them plan for retirement. And it’s important to note that even if the client isn’t ready to sell their policy, the agent or advisor has offered them an option that they can revisit in the future.
A policy review offers an easy way to move customer conversations forward and a way to earn extra fees by working smarter. Often, clients don’t realize that their life insurance is an asset. They view that life insurance policy as a liability and they don’t think they can derive any additional value from it. They assume the only option is to let a policy expire and they will walk away with nothing. The secondary market is incredibly active right now, and plenty of opportunities exist to work smarter, not harder.
Another popular conversation I have with agents and advisors revolves around the goal of creating a reason and a way to contact customers on a systematic and regular basis. My suggestion is to use a policy evaluation as a “door opener”.
Agents and advisors can approach clients with a financial option that many clients are unaware of. It gives them a reason to call a customer they may not have heard from in a while or who is hard to pin down. A policy assessment provides an opportunity for a customer who might initiate a conference call, Zoom call, or face-to-face meeting. Agents can bring something to the table and do it in a systematic way that can be repeated for senior clients in their business portfolio.
For clients unfamiliar with the secondary life insurance market, policy appraisal provides an opportunity to educate them and provide a previously unknown option. Just as a client would want an appraisal of an asset such as a home, car or expensive jewelry, a police appraisal sets the value so that expectations are properly set for a potential sale.
As the year progresses, it will be essential for agents and advisors to stay nimble and react quickly to the financial challenges customers face. Agents and advisors can really help customers in need by adding police assessments to their sales process.
William Scott Page is CEO of policyappraisal.com and LifeGuide Partners. He can be contacted at [email protected].
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