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Life Health > Life Insurance > Permanent Life Insurance

Volatility and Life Insurance

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What You Need to Know

  • Some clients who want more cash have life insurance.
  • Some of those clients could sell their policies to investors.
  • Agents and advisors could help the clients find out how much the policies are worth.

As we head into autumn, it’s helpful for agents and advisors to perform a broad assessment of their annual goals and modify their sales and marketing strategies accordingly.

Based on conversations with producers, agents, advisors, and clients, here are resolutions for increased sales, fees, and better client relationships in our current unpredictable market.

1. Cut costs and gain income.

What likely drove the need for some mid-year course corrections were the changes in the financial markets.

While we may have started the year with optimism, the economy has taken some major turns, and inflation and rising costs are hitting seniors hard.

We are getting a lot of calls from agents whose senior clients are telling them they are worried about rising prices.

Many seniors are trying to figure out how to continue to maintain their lifestyle as they age during retirement.

They desperately want to feel more financially secure.

Seniors are looking at their life insurance policies and wondering if they still need the coverage.

Children are grown, or perhaps the reason they bought the coverage has changed. Some clients have lost their spouses, gotten divorced, or decided they no longer need the coverage.

As living costs go up and portfolios shrink, they start to feel the pinch.

And because seniors have been through recessions before, they likely know it might be a few years before things turn around — so they start to question why they have their current coverage.

In situations like this, it’s a missed opportunity, and potentially a disservice to the client, to fail to inform them about their options.

The secondary market for life insurance policies is strong right now, and no clients should let their policy lapse without first securing a policy appraisal.

It can be “found money” and an opportunity for agents to earn some extra cash.

Freeing up funds from an underperforming policy can create a windfall of new investment opportunities — putting money in motion.

2. Work smarter, not harder.

Each year, and frankly always, we need to strive for maximum productivity from our relationships and our plans with clients.

We need to maximize our sales capacity and our sales efforts with our clients and prospects.

One way to accomplish this is to always be on the lookout for ways to sell multiple products to clients and therefore earn more fees by, yes, working smarter and not harder.

My advice to agents and advisors is to add a life insurance policy appraisal into their overall toolkit.

A policy appraisal is a simple way to work smarter.

It’s easy to get started as all that’s needed is some basic client information and an in-force illustration which can be quickly analyzed to determine the value of an existing policy and if the case will qualify on the secondary market — without getting your clients involved with the traditional “life settlement storm” of paperwork.

A policy appraisal can help clients identify a new income stream to assist with retirement planning.

And it is important to note that even if the client is not ready to sell their policy, the agent or advisor has brought them an option that they can revisit in the future.

For clients who choose to move ahead, agents and advisors can earn aggressive fees and there are no licensing requirements.

A policy appraisal offers an easy way to keep conversations advancing with clients, and a way to earn additional fees by working smarter.

Client’s love selling a policy on the secondary market because oftentimes they don’t realize that their life insurance is an asset.

They view it as a liability and don’t think that they can get any additional value from it.

They assume that the only option is to let a policy lapse and that they will walk away with nothing.

The secondary market is incredibly active right now, and many opportunities exist to work smarter, not harder.

3. Take a systematic approach.

Another, popular conversation I have with agents and advisors revolves around the goal of creating a reason and a way to reach out to clients systematically and regularly.

My suggestion is to use a policy appraisal as a “door opener.” Agents and advisors can approach clients with a financial option that many were unaware of.

It gives them a reason to call a client who they may have not heard from in a while or who is tough to pin down.

A policy appraisal brings forth an opportunity for a client that might trigger a phone conference, zoom call, or face-to-face meeting.

Agents can bring something to the table and do it in a systematic way that can be repeated for senior clients across their book of business.

For clients who do not know about the secondary market for life insurance, the policy appraisal offers an opportunity to educate them and bring forward a previously unknown option.

Just as a client would want an appraisal on an asset like a house, car, or expensive piece of jewelry, a policy appraisal sets the value so that the expectations are properly set for a potential sale.

As the year moves on, it will be critical for agents and advisors to remain nimble and react quickly to the financial challenges that clients are facing.

Agents and advisors can truly help clients in need while earning fees by adding policy appraisals to their sales process.

I wish you a prosperous remainder of 2022 and hope that you meet and exceed all your goals for the rest of the year.

Wm. Scott Page (Photo: Scott Page is the CEO of and of,





(Image: B-D-S Piotr Marcinski/Shutterstock)


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