You’ve seen the stereotypes applied to insurance agents. They aren’t pretty. It’s been said the quickest way to end a conversation at a party is to answer “What do you do?” with “I’m an insurance agent.” However, you, as an agent, know that most people are better off working with an insurance agent, versus going it alone, or going without.
Here are seven reasons you can give your clients for why they need help from someone like you.
There are lots of features, benefits and coverage options. Don’t forget deductibles. This makes it very difficult for ordinary consumers to compare products side by side. A good insurance agent learns about the client’s specific situation, makes a recommendation, and tells the client what it costs and why.
2. Saving Money
Insurance agencies often sell insurance from multiple providers. Some policies might stop being offered. New ones take their place. There’s competition in the market. A good agent will review the client’s coverage periodically, letting the client know if changes might save the client money.
3. Do They Pay Promptly?
There are lots of insurance providers out there. They aren’t all created equal. Someone might be cheap, but getting money out of them, if the client has a claim, is difficult. A good insurance agent knows who pays promptly.
Why do people buy insurance? Protection is a major reason. If something happens, and the policy owner needs to make a claim, it’s likely that the policy owner will not in a relaxed state of mind. Someone will be out six months to recuperate from surgery. Someone has cancer. Someone died. A good agent is in a position to act as an intermediary between the client and the insurance company.
5. Changing Needs
A recent graduate might start out with a little life insurance. Then they buy a house. Later, they have a child. Then another child. Then the children enroll in a private school. A good agency watches for clients who are going through major life changes.
6. Cheap v. Good
Recent graduates decide they don’t need to buy insurance through an agent. They get some life insurance coverage at work. They can buy term insurance online. It’s so cheap! That’s because they are young.
A few years later, the former recent graduates might not work at that firm anymore. The insurance coverage goes away. Buying new term life coverage becomes more expensive as people get older. At some point, getting good coverage at any price might be difficult. A good insurance agent can make the case for cash-value life insurance, such as whole life, or universal life.
7. Retirement Planning
Many people equate retirement planning with seeing the dentist regularly. People know they have to do it. They know problems will be found. They know it will cost them something. A good insurance agent keeps clients focused on this issue as early as possible, so they aren’t attempting to fill a much bigger savings cavity later.
The persistent insurance agent is a TV and movie stereotype. Maybe that’s because there are many reasons why the average person needs you to be persistent.
— Read How to Order Wine Like a Boss (Without Paying Like One), on ThinkAdvisor.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides high-net-worth client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor,” can be found on Amazon.