Life insurance has long been hailed for the variety of benefits it provides policyholders. With tax-free death benefits, tax-deferred cash value accumulation, and tax-free income opportunities, it s value proposition as a personal planning tool is immeasurable. For advisors with a one-dimensional practice, today’s life insurance contracts can create a tremendous opportunity to present new approaches to solving more of your clients’ problems. Adding a new dimension to your practice can increase your revenue, build the inherent value of your business, and reduce your dependence on prospecting.
Some practitioners learn the hard way — through firsthand experience — that their businesses are one-dimensional. They e ventually realize the harsh reality that delivering only one solution per client means any failure or breakdown in new client prospecting creates an absence of business revenue. Most agree the model is flawed because it fails to leverage any scale within the customer base. Leaving opportunities on the table is discounted on account of “focus” or “specialization.” It’s OK if you’ve been there, but most wouldn’t go back.
A luckier few identify the limitations of their practices by examining sales ratios and implementing practice management standards. These advisors learn a tremendous amount about their practices by reviewing annual sales reports to identify gaps and planning consistencies that were hidden in the midst of battle. This method helps advisors capitalize on last year’s lost sales while identifying the best opportunities for next year. Leveraging the client-advisor relationship makes natural business sense to this type of planner: solve more than one financial problem for each customer to create greater customer loyalty and reduce the number of new prospects you have to see to meet annual sales goals.
During these times when new business is more scarce and recruiting new customers increasingly more difficult, you can leverage the trusting relationships with your customers and solve more of their planning needs. Whether you would like to provide thoughtful recommendations concerning the efficient transfer of your customers’ retirement assets to the next generation, develop innovative retirement income strategies, implement princip al preservation techniques to prevent outliving a retirement nest egg, or educate your customers on long term care strategies, life insurance can help. Use the life insurance opportunities below to deepen the relationships with your customers and generate more sales while adding an extra dimension to your practice.
Opportunity #1 – Life insurance reviews
Sounds simple, but few do it. Reviewing cash value life insurance policies during annual review meetings with your existing clients will help uncover sales opportunities. Many of your clients own cash value life insurance policies that no longer meet the intended objective or are no longer needed. Show these clients how they can eliminate premiums and protect more assets by considering a more efficient contract offered today, or redeploy the cash value elsewhere. New policy features, underwriting guidelines and death benefit options all work together to provide more opportunity for your customer.