Are you looking for more opportunities to sell life insurance?
Are you currently working with baby boomers making the transition into retirement?
If so, I’ve got a simple idea that will help you grow your life insurance sales. But first, let me guess at what you are currently doing to generate income for your clients.
If you are a registered representative, you probably allocate your client’s portfolio into a mixture of equities and bonds. If you are insurance-licensed you probably reposition assets into the annuity with the highest roll-up rate on an income rider. Am I close? I speak with hundreds of agents each month who are employing those strategies.
While the average advisor is frantically trying to increase his or her assets under management, he or she often overlooks protecting the client with life insurance. One particularly bright advisor even told me recently, “I hate life insurance!”
If this advisor, who is a CFP and is extremely intelligent, hates selling life insurance, what is everyone else going to do? They probably won’t sell very much life insurance. And the statistics support that. Personally owned life insurance is at record lows. LIMRA statistics tell us that more than 52 million American adults don’t own any life insurance.
Most agents and advisors are more focused on the hot topic in financial services, which is income planning and making sure your clients won’t outlive their assets. It’s an important issue for seniors to address because the consequences of not having enough guaranteed lifetime income could be dire. And the solution is relatively easy. Just reposition their money. The average advisor just moves money around. The above-average advisor actually adds value for their clients — whether it’s by maximizing an asset or minimizing taxes.
See also: It’s all about taxes
One way advisors are starting to add value is by incorporating Social Security planning into their practice. Did you realize that married couples have hundreds of filing combinations that could result in $100,000 or more in additional income in their pockets throughout their retirement years? Can any of your client’s afford to leave any money on the table?
How much more willing would your prospects be to reposition their assets for income planning if you could show them a better filing strategy for claiming their Social Security benefits? What if that strategy puts tens of thousands more dollars in their pocket during their retirement years? The truth is that they will be much more willing to implement your income planning recommendations.