Welcome to the "Nonrenewable", "Nonconvertible" Cheap Term Era

Is the golden age of "cheap term insurance" over?  Sure looks like it's terminally ill.

Thanks to sustained low interest rates and onerous reserving requirements carriers are reeling. 

"But wait", you say, "rates have not gone up"...and to a certain extent you are right.  The actual term rates have not shot up, but there are big time "gotchas" that are in play with more and more carriers.

First, let's look at the phenomena of the inferior conversion products.  This is not new.  For the past few years, carriers have been slowly limiting the products a client can convert to...often the schnazzy new business product is verboten.  Rather, a more expensive product with less features is what is offered. Often is much more expensive...to the point of not being viable for a long duration insurance need. 

Second, while the level term period rates have been relatively stable, the price once the product goes through the level term period - the annually increasing rates ARE THROUGH THE ROOF.  It's not unusual nowadays for the rates to increase to a most unaffordable premium rate. 

Term insurance has become just that.  Insurance for a term of a client's life only.  Where once is might have been a "starter insurance plan", that is not the case now with many carriers - and I fear the trend will continue. 

Now more than ever, I think a client must consider some element of permanent insurance as part of their insurance plan.  One thing is for certain - term insurance is not as flexible as it once was.  Careful observation of a client's position and needs are of utmost importance lest he be painted into a corner and cannot afford the insurance when he, his family or his business need it most.

The Death of Receptionists...and Toll-Free numbers.

This is written to Betty at the Switchboard - Betty, ask not for who the bell tolls.  It tolls for thee. 

Two basic staples of the business world are on the verge of extinction, or should be for anyone who's forward thinking.  The receptionist and the toll free phone number. 

There was a time when that human voice greeting the caller was a mandate for any service oriented firm.  There was a time that an "800 number" was a must for any organization with a footprint beyond their area-code.  But these relics are so "1990s".  Anymore, very often, that human voice is an impediment to efficient business communication and that toll-free number is obsolete. 

In this helter-skelter world, this always-on world, this techno-viral-to-the-max world, a receptionist - once a valuable part of the chess game of business life - is a confusion point.  Given that the "phone-sentinel" is most often not privy to the inner-workings of a business, their position impedes the process, not enhances it.

Case in point, some variation of this conversation happens to me weekly:  I've got an important message to impart to a business associate or broker and their receptionist answers:

Receptionist - "Hello, Gumtree Financial, this is Kayla, how can I direct your call?"
Me:  "Hi Kayla, this is Ray Phillips from Brokers Source - is Dirk Konyo in?"
Receptionist:  "Where did you say you were from?"
Me:   "Brokers Source"
Receptionist: "Brokerage Resources??  uh...can I tell him what this is regarding?"
Me:  "I need to speak to him about the changing GUL rates on a client we quoted"
Receptionist: "What was that?  I TUL??" 
Me:  "GUL. And, it's Brokers Source."
Receptionist:  "Is Mr. Konyo expecting your call?"

At this point with my stack of calls and work and life to address, the last thing I want is to stay in this verbal Ping-Pong match with Dirk's receptionist.  And, I GET IT!!  Dirk is screening his calls.  No problem dude.  You're not hurting my feelings.  But I've got to get this info in your ear and get on with my life!!

Consider this scenario.  I get Dirk's auto-attendant; or better yet, I have his direct dial.  He sees the caller ID, knows it's me and cannot pickup because he's in the middle of another project:

Dirk's VoiceMail Greeting:  "Hi this is Dirk Konyo, your call is very important to me.  Please leave a message and I will return your call at my earliest convenience". 
Me:  "Dirk this is Ray Phillips.  I just got notice that United Fidelity Union Life is changing their GUL Rates effective Monday the 5th.  We've got to get that case I quoted for you in soon!  let me know what you need me to do to help!"

I'm a busy guy.  He's a busy guy.  He's got the message.  I'm on with other productive things. 

And, don't get me started about toll free numbers.  Everyone had a one size fits all plan.  At home, on the cellphone.  It's the same price to call Alaska as it is to call across the street.  Why have a toll free number?  I switched to IP phones now, the ol' internet, phone bundle all in one.   Guess what?  The only additional charges I get on my monthly phone bill are our long tenured constituents who have the toll free number programmed into their phones!  And, often they are in my area code anyway!

Don't get me wrong, I'm an old enough war-horse to long for those days of receptionists, and business letters and toll-free numbers carrying some marketing franchise - but I've adapted.  The market waits for no man, and it sure won't wait for me.  I make my coffee in little plastic pods now too. 

So, Betty, it's been good knowing you.  I've redirected my resources to someone other than you.  Toll free number?  You're still there.  But I sure won't be spreading the word about your existence.