John Prine wrote, "Oh baby, it's a big old goofy world" in his song of the same name. Boy did he get it right. Look around: ebola virus, a fragile and shaky stock market, interest rates that are dropping like rocks, cyber hackers abound. Can somebody hand me a guarantee?
Well, yes, someone can. Certain annuity carriers will hand you a guarantee of income in the future. That's not an if. Not a maybe. An iron clad guarantee that's out there for the taking. It's called a Longevity Annuity.
The concept is simple. Put a hunk of money away today to fund a future income stream. Want $500 a month for life starting at age 65? The carrier will calculate what you need to put away today. Think of it as a deferred comp plan...for yourself.
In this crazy, mixed-up world, it's just what many clients want. Guarantees.
Sure - get wild and crazy with some money. Play the market - if you think buy-and-hold is still valid - but have those future guarantees! Maybe even allow a client or yourself to get a little wilder and crazier. Rest assured, the income will be there, even if our future world is goofier than it is today.
Thursday, October 16, 2014
Wednesday, August 27, 2014
It's not just about needs...it's about wants
For many years now, the pundits have all suggested the life insurance is becoming commoditized. Purchasers are being driven to the internet to buy their life insurance and even develop the need.
I guess that makes sense, developing their own need. This isn't some calculus equation. It can be quantified and....commoditized.
Why then do the industry show that we're a grossly underinsured society? In 2013, LIMRA reported that only 44% of Americans own individual life insurance. The same report suggested only 16% of people would prefer to purchase insurance online. So, maybe people are not really doing a good job of tending to their own life insurance planning after all. And, maybe they just don't want to buy it on their own.
Here's a good experiment. Ask a friend or family member when's the last time someone asked them about life insurance (assuming you're not in the business and haven't asked them yourself). I'll bet nobody has asked them.
Somewhere along the line the magic of life insurance has left the industry. Somewhere along the line the power of life insurance has left the planner. Somewhere along the line the fact that life insurance can address a person's "wants" in case of a premature death as much as their "needs".
Take the two income family. Husband is an sales rep; Wife is an accountant. Maybe they aren't even the typical family - maybe they are prudent enough to have kept debt down and lived within their means. They've got two kids; and SUV and a Minivan.
I think you could argue they do not "need" much life insurance.
But let's say the husband sees how rough the wife's professional life is. She hates her boss. Works long hours. They don't need much life insurance, but he "wants" her to work less if something should happen to him.
He wants her to spend more time with the kids if he's gone. He doesn't want her stressed and scared that if she loses her job - it happens, you know - she doesn't have to fret about not having a safety net.
Or that they can easily send the kids to a private college.
or they can travel together.
or he can impact a charity.
Life insurance is not just a need. It's a want. It's what has made it magical historically. And, to a great extent it's what we've lost as an industry and as consumers.
I guess that makes sense, developing their own need. This isn't some calculus equation. It can be quantified and....commoditized.
Why then do the industry show that we're a grossly underinsured society? In 2013, LIMRA reported that only 44% of Americans own individual life insurance. The same report suggested only 16% of people would prefer to purchase insurance online. So, maybe people are not really doing a good job of tending to their own life insurance planning after all. And, maybe they just don't want to buy it on their own.
Here's a good experiment. Ask a friend or family member when's the last time someone asked them about life insurance (assuming you're not in the business and haven't asked them yourself). I'll bet nobody has asked them.
Somewhere along the line the magic of life insurance has left the industry. Somewhere along the line the power of life insurance has left the planner. Somewhere along the line the fact that life insurance can address a person's "wants" in case of a premature death as much as their "needs".
Take the two income family. Husband is an sales rep; Wife is an accountant. Maybe they aren't even the typical family - maybe they are prudent enough to have kept debt down and lived within their means. They've got two kids; and SUV and a Minivan.
I think you could argue they do not "need" much life insurance.
But let's say the husband sees how rough the wife's professional life is. She hates her boss. Works long hours. They don't need much life insurance, but he "wants" her to work less if something should happen to him.
He wants her to spend more time with the kids if he's gone. He doesn't want her stressed and scared that if she loses her job - it happens, you know - she doesn't have to fret about not having a safety net.
Or that they can easily send the kids to a private college.
or they can travel together.
or he can impact a charity.
Life insurance is not just a need. It's a want. It's what has made it magical historically. And, to a great extent it's what we've lost as an industry and as consumers.
Wednesday, April 16, 2014
The 2,000 Pound Pen
Heard a great story from a good friend and a great insurance broker today.
When a client declines to purchase from him, he will go out - one last time - to meet with the client. He has a series of "Declination of Coverage" forms for various product lines pre-written. He wants the client to sign off that he declined his coverage.
As he pulls out the form he discusses with the client the reasons that he thinks it is a mistake to not secure the coverage, he sets the form out in front of the client and pulls out his own pen and sets it off to the side - as he gives one last ditch effort to secure the sale. The sheer act of having that writing instrument sit on the table is the power move here, "I want him to physically have to pick up that pen. I want him to think that pen is 2,000 pounds".
Guess what? Not all the time, but very often, the client does pause. The client reconsiders. A sale is saved. Think about it. If he saves but one sale out of ten, isn't it worth it? Isn't it worth it to the client's family?
Little things can mean so much in a sale. It might be worth trying...don't cost nuthin'.
When a client declines to purchase from him, he will go out - one last time - to meet with the client. He has a series of "Declination of Coverage" forms for various product lines pre-written. He wants the client to sign off that he declined his coverage.
As he pulls out the form he discusses with the client the reasons that he thinks it is a mistake to not secure the coverage, he sets the form out in front of the client and pulls out his own pen and sets it off to the side - as he gives one last ditch effort to secure the sale. The sheer act of having that writing instrument sit on the table is the power move here, "I want him to physically have to pick up that pen. I want him to think that pen is 2,000 pounds".
Guess what? Not all the time, but very often, the client does pause. The client reconsiders. A sale is saved. Think about it. If he saves but one sale out of ten, isn't it worth it? Isn't it worth it to the client's family?
Little things can mean so much in a sale. It might be worth trying...don't cost nuthin'.
Sunday, February 23, 2014
How Does Seth Godin do it?
I'm a big fan of Seth Godin. I subscribe to his daily email blast of his Blog. Yes. I said DAILY blast. He blogs daily and, honestly, it's consistently fresh, insightful and thought-provoking. I look at my haphazard efforts on this blog, and I feel so unworthy to be in the same blogiverse as him. It can be found at this address: http://sethgodin.typepad.com/ His views on marketing, leadership and entrepreneurship are spot on for me. None of the smarmy, often repeated dreck of so many of the "gurus" out there. Check it out. Make it a regular read. And, apply it to your business...and life. Plus I'm a big fan of his hairline! (but not his yellow glasses).
Monday, January 20, 2014
Holiday Gifts of Love
I bought something very special for my family for Christmas: a
Critical Illness plan from Assurity Life. As we close out the year, don't
forget about the most important client you have...YOU.
Life Insurance: do you have 5 to 10x income? That's what all the experts say you need, but also assess how much you WANT. We've conditioned ourselves to "sell the need" while often ignoring the "want". You need the Life Insurance to replace income - what do you want it to do? Send kids to college? Help your church or a charity? Allow your surviving spouse to not have to work so hard?
Disability Insurance: I'm astounded at how many insurance professionals I've spoken with who don't have DI! Sure it protects a paycheck, but it protects that nice car you have in the driveway; the nice home you have; the tuition bills at the private college. BUY IT! And, buy enough to protect your lifestyle.
Critical Illness: I love this concept. Pays for heart attacks, cancers, etc. Do you think that in the age of National Healthcare everything will be covered lock, stock and barrel? Do you think there's a correlation between countries that have had existing National Healthcare and them having great CI sales? Face it. Any health plan has holes that you can't see until a claim comes in - do you think a healthcare plan run by the government will be different? No elimination periods, cash on the barrelhead.
Long Term Care Insurance: I think linked benefits are a worth consideration nowadays - or one of the accelerated DB riders on a life insurance plan. See above - do you WANT your Life Insurance to cover a two for one proposition? Death and a long term care claim? If not, buy LTCI. Take the burden of potential care off your family's back.
If you don't have any one of these coverages - buy them. It'll help you market them to your clients as well as providing you protection.
Here's to a prosperous and Healthy 2014. May all your policies be issued preferred and may you not have a claim of your own (but just in case, make sure you have the coverage).
Life Insurance: do you have 5 to 10x income? That's what all the experts say you need, but also assess how much you WANT. We've conditioned ourselves to "sell the need" while often ignoring the "want". You need the Life Insurance to replace income - what do you want it to do? Send kids to college? Help your church or a charity? Allow your surviving spouse to not have to work so hard?
Disability Insurance: I'm astounded at how many insurance professionals I've spoken with who don't have DI! Sure it protects a paycheck, but it protects that nice car you have in the driveway; the nice home you have; the tuition bills at the private college. BUY IT! And, buy enough to protect your lifestyle.
Critical Illness: I love this concept. Pays for heart attacks, cancers, etc. Do you think that in the age of National Healthcare everything will be covered lock, stock and barrel? Do you think there's a correlation between countries that have had existing National Healthcare and them having great CI sales? Face it. Any health plan has holes that you can't see until a claim comes in - do you think a healthcare plan run by the government will be different? No elimination periods, cash on the barrelhead.
Long Term Care Insurance: I think linked benefits are a worth consideration nowadays - or one of the accelerated DB riders on a life insurance plan. See above - do you WANT your Life Insurance to cover a two for one proposition? Death and a long term care claim? If not, buy LTCI. Take the burden of potential care off your family's back.
If you don't have any one of these coverages - buy them. It'll help you market them to your clients as well as providing you protection.
Here's to a prosperous and Healthy 2014. May all your policies be issued preferred and may you not have a claim of your own (but just in case, make sure you have the coverage).
Subscribe to:
Posts (Atom)