What You Need to Know
- You know which issuers are safe.
- You can help clients understand what they really need.
- You also know which options are just bells and whistles and which really matter.
Everyone wants to eliminate the middleman.
Years ago, people said: “I can get it for you wholesale.” Online trading allows investors to buy stocks without paying brokerage commissions.
Can your clients buy insurance the same way? Yes, they can. No, they shouldn’t.
Let’s stick with the investing analogy and buying stock online.
If your clients did their research, found a company they really liked, wanted to buy it and maybe hold it forever, buying online makes sense.
Why? Because the clients did all the research beforehand and simply needed someone to execute the trade.
Time for another analogy.
Clients are thinking of buying a Louis Vuitton purse. They might be interested in the iconic Speedy bag.
A client might buy a used bag at an auction house like Sotheby’s. A client might find one for sale online. A client might meet a guy in a pub who offers to sell one he happens to have in the trunk of his car.
Where is the best place for the client to buy the purse?
Probably the boutique or the auction house, where the client has direct contact with a specialist and a firm standing behind its authenticity.
Make sure your clients understand that insurance kind of works the same way.
Here are seven reasons buying insurance is less like buying stock and more like buying that purse.
Insurance is a complicated product with many moving parts. What if I clients say, “I can buy my own life insurance, health insurance and annuities online. I don’t need you to help me with that.”
Here are seven things to tell them.
1. Is the seller legitimate?
Imagine buying that designer purse online and getting a great deal. The photo is perfect. It’s the real thing. Unfortunately it never arrived.
Insurance: Your client found a great sounding policy on the Internet.
Your client never heard of them, but the name sounded legitimate.
Aren’t all insurance companies regulated?
Your client sent them money, but there was no insurance company. The website disappeared. What a mess.
You, the agent, can save the client from that mess.
2. Is your client buying a fake?
Your client knows there are plenty of fake designer bags out there. Some look pretty good.
If your client paid a thousand for a purse on the internet, how would the client feel if about getting a crude knockoff?
Insurance: When buying dental insurance, for example, your client would want a product that does a specific job and provides the expected benefit and coverage.
Your client wouldn’t want a “policy” that wasn’t actually insurance, but merely access to a dental services discount program.
You can help your client find the right product, rather than a product that looks like the right product but is something else entirely.
3. What happens if it gets damaged?
If your client buys a purse from a Louis Vuitton boutique, they have a procedure for making repairs if necessary.
If your client breaks the zipper, Louis Vuitton can replace it with another authentic one, preserving the value of the purse.
Insurance: Some insurance companies settle claims and pay faster than others.