Jack Dewald
Jack Dewald, CLU, RHU, is a 38-plus year veteran of the life
insurance business and president of Agency Services, Inc.,
a Memphis, Tennessee based wholesale insurance firm
that has been in business since 1962. Every year, hundreds
of advisors and agents choose ASI to help them meet
their clients’ needs for innovative and creative insurance
solutions. I asked Mr. Dewald whether the pandemic
had stirred new interest in his brokers’ markets among
prospects and clients looking for life insurance coverage.
Reacting to uncertainty
He told me, “From my perspective, the sheer uncertainty of
things has caused two main consumer reactions. Many acted
to purchase more coverage because of economic and financial
uncertainty. A few became totally paralyzed by the fear, and those
kinds of cases did not develop, or in some instances pending cases
closed out because the consumers froze and were unwilling to
complete necessary underwriting requirements.
“As a brokerage general agent,” he said, “we’ve seen a few other
trends developing: overall case count is actually trending upward.
In our agency, the average size case by premium has trended
downward due to the more sophisticated estate planning and
complex cases being put on ice due to the inability of advisor teams
(accountants, attorneys, and life insurance advisors) to meet and
discuss with their clients. Early in the pandemic when the stock
market was so volatile, financial advisors who manage client funds
were so immersed in talking to and calming their clients that little
effort was put towards insurance sales.
Surviving in the crosshairs
“Carriers have adapted well to the smaller case size — offering
increased flexibility with non-medical, no exam options. Of course,
these non-med kinds of cases are also all smaller face amounts —
and premiums. In addition, most carriers put restrictions on olderage
applicants, which by definition are usually higher premium
cases. Those businesses that were in the true cross-hairs of the
pandemic (restaurants, small retail, etc.) have justifiably just been
trying to survive, and as such, insurance wasn’t a priority. Other
nice size business cases have been opened and completed if the
specific business was less impacted. It has truly been a mixed bag.”
“Carriers have adapted well to
the smaller case size – offering
increased flexibility with
non-medical, no exam options.”
Brad Elman
Dewald
Brad Elman, CLU, ChSNC, is a financial representative
of The Northwestern Mutual Life Insurance Company
and a 27-year MDRT Qualifying Member with 17 COT
qualifications. His office is in Los Altos, California, and
when I asked whether he’s seen fresh interest in life
insurance, he told me, “Our practice is primarily focused
on working with closely held businesses — that is, venture
capital, law, accounting, etc. Despite being sheltered in
place in the San Francisco Bay Area, and insurers changing
their application and underwriting processes, our business
has not changed much at all.
Short-term motivator
“At the beginning of the pandemic we saw an uptick in calls
to purchase more life insurance. It seems that the pandemic
motivated people who already had ‘buy life insurance’ on their
to-do list to finally meet with an advisor and create a solid financial
plan that includes a life insurance policy. As the pandemic wears
on, people are becoming more comfortable with the risk that the
virus poses, evident in people’s increased willingness to congregate
in public places. While it might have been a short-term motivator,
the pandemic likely won’t be a long-term motivator in the life
insurance industry.
“At the beginning of the pandemic,” Mr. Elman continued, “our
business clients needed to triage their day to day issues (payroll,
benefits, working from home, PPE loans), and they suffered deeply
from information overload. Many were not as open to discussing
long-term planning, as their focus shifted solely to short-term
business survival. We took our support a step further by watching
webinars and selectively directing clients to attend webinars
appropriate for their business. Since then, things have settled
down and business clients are more willing to resume their longterm
planning.”
Impact on life market continued on page 24
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