TERM LIFE
Nurturing the hero from page 27
Building it better
Anderson : As it is getting easier with the e-apps you can let the clients know how technology is improving the customer experience . We are at an all-time high point for ease and speed when it comes to purchasing a term life insurance policy . I believe there are more improvements to come , but it ’ s incumbent on our industry to maintain and increase the rate of change . We promote ease and speed , but for the heroes buying a policy , there are still gaps and room for improvement .
Automated underwriting including instant decisions / policies have been on a rapid climb since 2016 . As LIMRA studies have pointed out , the percentage of those that had instant decisions / policies is at an all-time high , and will continue to grow . We need to ride that wave !
Your future or theirs
Hallett : You can help the client buy a $ 1,000 policy today and let them know how it is getting easier with technology . Next year , you can talk with them about spending $ 10,000 a year and investing in their own future .
My dad once told me that permanent plans are easier to sell than term life . I didn ’ t believe him and he said it is true because when he used to sell farmers back in the day , they would buy term policies for those they loved — spouses , children , siblings , or people in their business ( with a business plan ). A permanent plan focuses only on one person — you . That money will be there for your future versus term life is for “ their future .” That is why you buy term insurance .
So , if we can get everyone , all the advisors , to pull back to covering the basics of protection , then next year we can tell the story of how to layer on top of the basic plans .
Idea to consider
Hallett : Here is an idea , one that we are working on that focuses on a goal for right now . We ask our group — what if you only made 1 % revenue on life insurance , but your team never had to touch it ? You give it to another group to handle , and blame that group if anything goes wrong in the processing . So , when you get the life insurance plans , and go through them with your clients along with the financial plans , would you be willing to talk about life insurance more , knowing you don ’ t have to touch the life insurance ? Everyone I have spoken to has said yes .
And , so I then ask them if you talked about it more , how much more do you think you could sell ? Twice as much ? Most agree . So , if you sell twice as much and you make half as much , you are making the same amount , but your team wouldn ’ t have to do any work . Doesn ’ t that sound like a good plan ? No advisor has disagreed with my logic yet . I would challenge others to ask the same question .
I actually think the future of BGAs is becoming the brokers ’ broker and splitting cases right down the middle .
Nurturing the base
Anderson : I agree with Jeremy , we need to join forces on some of this stuff for more efficiency so the broker and the advisor can do what they do best — protect lives .
But then , it ’ s not just the BGAs or the advisors . I believe the carriers can get involved in focusing on basic protection too . We all need to put energy into term life ; and nurture the selfless heroes needed to close the coverage gap .
So the big central message that Jeremy and I want to promote is not just that we have to find these heroes waiting to be sold , but that you need to explain to all clients what life insurance is , and why it is so important that they become the hero . It is our job as a whole industry to help people become heroes .
My dad once told me that permanent plans are easier to sell because they focus only on one person — you . That money will be there for your future versus term life is for ‘ their future ,’ those that you love .
Jeremy Hallett
28 Perspectives Q2 2022