Tools For Doing More Life Business in 2019

1. Do it now.

You may know it as Drop-Ticket (an electronic platform called ExpressComplete). Use it for those prospects who are adamant about getting it done right now. If you can’t take care of them, they’ll find someone who will. When, you say, “Let’s do it right now,” you’ll not only get their attention, you’ll land their business.

When using ExpressComplete, there’s no need to meet with a prospect. Since everything is done online, you can do it all from your office, using the app. Better yet, the entire process is paperless. You’ll save even more time, since the carrier will arrange a phone interview with the client, and policies are approved quicker.

2. There’s more retirement money.

Yes, index universal life (IUL) is one of the most useful tools for helping consumers meet their financial goals. It continues to lead in life insurance sales—even after being on the market for nearly three decades. It’s so popular that the IRS limits the amount that can be put into it, so it doesn’t get too “hot.”

While it has the benefits of universal life plans, it’s the accumulation values that make it so appealing to consumers, which are tied to the S&P 500 Index. Although there’s a company-set cap on the upside, there’s also a company-set floor for safety in not so good times. In other words, clients participate in stock market gains and minimize risks.

On top of all this, IUL is a two-stage product offering significant flexibility during accumulation and distribution. It’s particularly appealing to consumers since their invested funds grow tax-free. They also see their IUL plans as a living benefit since it can serve as a way to supplement their retirement income.

3. Don’t use it? Don’t lose it.

Life carriers were on the right track when they responded to rising nursing home costs with long-term care insurance policies 30 years ago. “Who’s going to take care of me?” and “Nursing home costs could wipe us out financially.” These were the ever-present consumer concerns.

While the carriers had the right vision, the pricing design failed to meet buyer expectations. First, they fell victim to a lack of guarantees and ever-increasing premiums. Second, prospects didn’t buy into losing their investment if they didn’t use the coverage. Over time, carriers abandoned standalone products.

With long-term care costs surging, calls for protection continued unabated, another example of pent-up consumer demand at work. This time the carriers responded with the right product: long-term care riders for both permanent life insurance products, as well as annuities.

Riders have erased the criticisms of both the “use it or lose it” and the rising premium complaints of the standalone long-term care policies. All or a portion of the coverage is available for long-term care services and whatever isn’t used, if any, goes to the beneficiary. Or, if long-term care is not needed, the total coverage becomes the death benefit. The additional premium for the rider is guaranteed, overcoming the objection to standalone policies. Like IUL policies, riders are an example of life insurance for the living.

4. There’s business waiting for you.

Some may recall that in the late 1990s regulators became concerned that some life insurance companies were under reserved and, at least potentially, in financial jeopardy.

To help solve this problem, they adopted the Triple-X regulation that required higher reserves and, consequently, higher premiums, which set off a massive sales effort, particularly in 20-year guaranteed level term-life sales.

Now, many of those policies are reaching maturity and policyowners are facing significant premium increases in the 21st year. Many are dropping the coverage, while others are writing checks. Because so many policies are out there, this is an opportunity for advisors to work with these policyowners and find solutions that fit their situation.

But even having the right tools is not enough to get us to the goal of doing more business in the year ahead. That takes the commitment to put our tools to work.

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Kenneth A. Shapiro is the president of First American Insurance Underwriters Inc., a Needham, Massaschusetts-based national life brokerage firm. He specializes inin coaching producers and helping them with complex cases. He can be reached at [email protected].