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North American Company Blog

 

Spring Cleaning Time

 

Now that spring has sprung and April showers will hopefully wash away the grime of
winter, it’s a good time to do some spring cleaning around your office. It’s a good time
to physically tidy up the office surrounding, but also the perfect time to clean up you
business environment too.


Tips to Get Your Business Cleaned Up
If you keep physical files, make sure they are organized. At least once a year, take
some time to clean out any old files. On the North American website, use the advanced
search on the Inforce Business Access page to sort by policies that have lapsed,
matured, or had a claim paid. This will help to easily identify some files you might be
able to purge.


Digitize what you can. Use a scanner to make electronic copies of documents that are
worth keeping, but not necessarily in a physical format. Also, once saved, be sure to
back them up in more than one location.

 

Clean up your email inbox. Sort through your inbox and then delete what you do not
need. Make use of folders to organize emails you intend to keep. Name the folders so
that you can easily identify what type of information should be located there.

 

As the birds sing and the flowers bloom, you too will be singing a happy tune with a
well-organized and spruced up business environment.

 

 

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What Will Your Clients Leave Behind?

 

 

Benjamin Franklin once said, “…nothing is certain except death and taxes.”1 Regardless of the life you have lived, it’s not a question about “if”, it’s a question of “when”. But being prepared for the inevitable begins by having a will and death benefit protection.


Nearly everyone has an estate regardless of how significant. Your client’s estate is comprised of everything they own – their car, home, investments, or personal possessions. By not having a strategy, your clients could be missing crucial ways to pass along money or assets to their beneficiaries. Let’s explore a few scenarios you can share with your clients.


1. Your clients are blessed with grandchildren and may start thinking about how they can help them financially when they get older. They may not have a lot of excess income after taking care of their retirement savings and the amount your clients have left over might not feel like much when split between the grandchildren. One way your client can leverage their income is to purchase life insurance and have the death benefit be left to their grandchildren. The benefit is available from the day the policy is put into place, and the death benefit could potentially be larger than any amount your client could save.


2. Your client owns a business for over 30 years and wants to keep it in their family to own and operate. One of their three children are interested in taking over the business, but your client wants their children to receive equal amounts as an inheritance. Besides the business, your client doesn’t have a lot of assets and would feel guilty if the business had to be sold to provide an equal share of inheritance. To help relieve this guilt, your client can take out a permanent insurance policy with a death benefit worth a value of twice their company’s worth and make the beneficiaries the two children who don’t want ownership of the business. Upon your clients passing, one child would get the business and the other two would split the death benefit. By leveraging your client’s money using insurance, all their children would receive an equal share of inheritance and the business could still be owned and operated by the family.


These are just two ways life insurance can be used to provide death benefit protection your client needs to leave a lasting legacy.

 


1.https://constitutioncenter.org/blog/benjamin-franklins-last-great-quote-and-the-constitution


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Are You Talking to Millennials?

 

Millennials…who are they? According to Merriam-Webster Dictionary they are a generational group born between the early 1980s and late 1990s. There are several stereotypes…good and bad—true and untrue, regarding this age group. There have been many studies conducted to try to understand the best ways to market to millennials. To learn more about their buying habits and “wants” relative to life insurance, Life Happens® and LIMRA included millennials in their annual Insurance Barometer Study last year.1 The study identified millennials as those born between 1981 and 1998 (between the ages of 18-26 at the time of the survey.) The survey also interviewed groups characterized as seniors, baby boomers, and generation X. Here is what the survey revealed:

 

Only 52% of millennials have life insurance. About 23% of millennials who have life insurance have it through their employer. One in four admit that they don’t have enough life insurance and one in 10 don’t even know if they have coverage.

 

Reasons Why Millennials Don’t Purchase Life Insurance

Nearly two thirds of all respondents in the survey said they had other financial priorities as a reason why they did not buy life insurance. This reasoning was relatively high among millennials.

 

Here are millennial responses compared to all responded as to why they don’t purchase insurance:

                                                                                                                Among Millennials    Among All Groups

Cost of Living Expenses                                                        61%                   62%
(rent, mortgage, groceries, electricity etc.)

Additional Living Expenses                                                    57%                   50%
(cable, internet, cell phones etc.)

Building Savings Accounts or Emergency Funds                  46%                   39%

Managing Accumulated Debts (credit cards, etc.)                       40%                   38%

Saving for Retirement                                                            37%                   34%

Health Expenses                                                                    30%                   32%

Day-to-Day Recreational Activities                                         38%                  26%

Saving or paying for a new car, boat or home                       37%                   25%

Saving or paying for college or student loans                        32%                   21%

Vacations                                                                               23%                   17%

 

-  Almost half of millennials indicated that lack of approach by life insurance agents is as contributing factors to why they don’t have any life insurance or more life insurance.

-  42 percent believe they would not qualify for affordable life insurance coverage.

-  “Millennials overestimate the cost of life insurance. Four in 10 believe a term-life policy costs more than $1,000 a year (which is more than five times the actual cost),” stated the 2017 Barometer Study.

 

Do You Have a Marketing Strategy for Millennials?

So what do all these statistics reveal? You need to consider a marketing strategy targeted to millennials. Hopefully, these statistics can help develop a strategy that addresses their concerns and needs. Social media can be an excellent sales tool for millennials, but not the only tool.

 

According to the Barometer Study, online purchase attempts have tripled since the study began in 2011. As expected, the largest majority of millennials, 64% have visited a website of a life insurance company and have sought information about live insurance online. Forty-five percent have purchased or attempted to purchase life insurance online. 

 

Millennials Would LOVE to Hear from YOU
However, the survey also found that among millennials 68% want the ability to chat with a person. In addition, 79% want the purchase easy to understand, and 67% want the ability to pick insurance from categories. So, while millennials use the internet and social media, they also want personal contact. Bottom line: talk with millennials about life insurance!
 
1Life Happens® , is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance product or agent.
 
2 The 2017 Barometer Study conducted by Life Happens® and LIMRA tracks the perceptions, attitudes and behaviors of consumers in the United States. The study looks at financial concerns of various groups, how they think and how they act in regards to financial products with an emphasis on life insurance.  http://advisor.simplicitymarketing.com/wpcontent/uploads/2017/06/report_Barometer_Study_2017.pdf
 
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Are you a "Go-To Source" for Clients?

 

In today’s world of online shopping and many brick and mortar stores closing or downsizing, it may seem like the days of person-to-person transactions are disappearing. Does the trend apply to the insurance industry too?

 

According to the 2016 Insurance Barometer Survey1 by Life Happens® and LIMRA online purchase attempts have tripled since the Barometer Survey’s inception in 2011. However, the survey also revealed that the majority of respondents, even among younger generations, prefer to purchase life insurance in person. In the survey, 68% of those who prefer to buy life insurance in person say it is because they can work with someone local. In addition, 77% of those who prefer to buy life insurance in person say it is because they can ask questions. Other responses that ranked high as to why they prefer to purchase insurance in person were “I can get immediate feedback and interact back and forth”(74%); “I feel more comfortable and confident with this method” (72%); “I can gauge and establish trust and honesty” (57%); “I want the potential to build a longterm relationship with an agent or financial advisor” (47%); “I prefer an agent or financial advisor I already know” (45%) and “Life insurance is too complicated to purchase any other way” (45%).

 

Only one in five people prefer to apply for life insurance online. Those who preferred that method said it was because it gave them the ability to research and comparison shop at their own pace and without pressure to buy. Despite the information and convenience of online options, fewer cited comfort as a reason they would buy online.

 

In 2017 Life Happens® and LIMRA also asked about consumer preferences for making life insurance purchases. In that survey2 an overwhelming majority (83%) said that “easy to understand” was very or extremely important. They responded that ability to chat with a person as important (66%). The survey also indicated that 55% had visited the website of a life insurance company and 52% had sought information about life insurance online, but only 32% purchased or attempted to purchase life insurance online.

 

What is the take away from the survey results? While interest in online life insurance “shopping” is increasing, consumers still want to talk to you. Personal contact, trust and knowledge still matter. Keep the lines of communication open with prospective and current clients to be a “Go-To-Resource” for them!

 

 

1 Source: 2016 Insurance Barometer Study by Life Happens® and LIMRA http://advisor.simplicitymarketing.com/wp-content/uploads/2017/01/2016-Insurance-Barometer.pdf

 

2 Source: 2016 Insurance Barometer Study by Life Happens® and LIMRA http://advisor.simplicitymarketing.com/wpcontent/uploads/2017/06/report_Barometer_Study_2017.pdf Life Happens, is a nonprofit organization dedicated to helping consumers take personal responsibility through ownership of life insurance and related products. 

 

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Set up a good defense when it comes to objections

 

It can be more fun to play offense when it comes to life insurance sales, but when client excuses or objections bounce your way, are you ready with a good defensive strategy?


Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens®1 wrote in 2016 that there are some basic objections that prospective clients have to life insurance. He says they are “no need, no money, no hurry, no confidence, and everything else is a variation of these.” You can check out what he has to say about each of these objections here.


Ready to start your own defense? Here are some tips on how to block objections that may come your way.

 

Listen
Make it a point to listen to what your client is saying. Through listening you may learn why is client is being negative. When you know why you can more specifically address objections.


Empathize
When listening, always be sure to empathize with the client’s concerns.


Be Honest
When responding to objections, be honest and be a straight shooter in your response. If you don’t have a response immediately, tell them you will get back to them and then respond as soon as possible.


Be Prepared
Like any good strategy, preparation is crucial. Consider common objections you and other producers face, and develop a plan for how your will individually address those roadblocks.


The key to overcoming a client’s objection is fully understanding what the objection is so you can mount a good defense to meet that objection. Minimize the frustration of bad bounces with a good defense, then bounce the ball back to a positive action with the right response.

 


1Life Happens, is a nonprofit organization dedicated to helping consumers take personal responsibility through ownership of life insurance and related products.

 

 

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