Whether financial professionals are new to the industry or seasoned veterans, growing a business portfolio is imperative. Year-end is slowly creeping into the picture, and generating new business only becomes more vital as we approach the backend of 2022. Financial professionals looking to add life insurance, long term care/linked benefits, disability insurance or annuities into their practices can leverage these ideas and tools to help finish the year strong.
The ‘best’ life insurance
Often a client may ask, “How do I know which life insurance product is the best choice?” The answer to that life insurance products are as varied as people are because the best life insurance product is the one that most appropriately fits the client’s needs.
Determining what product is a good fit for clients requires asking meaningful questions. Here are some personal and business-related examples to get started:
What is the client’s life situation?
What are the client’s chief concerns?
Do clients need coverage for a specific period or for the rest of their life?
How much coverage do the clients need and how much can the clients afford?
Is there a key employee who needs to be covered so the business will not suffer if that key employee left?
Are there executives the client will want to retain and reward by using the cash value growth of life insurance?
Is the client’s business prepared with a buy-sell agreement if the business partner were to suddenly depart, become disabled, or die?
Answers to questions like these will go a long way to both getting to know clients and finding the right product based on their needs.
Extended care planning
Starting the long-term care conversation with clients can be challenging for financial professionals. However, being prepared with talking points and questions will help guide a meaningful extended care planning conversation.
Broach the subject—“What place comes to mind when you hear the words “long-term care?”
Share their experience— “Have you ever known anyone who needed assistance or help to get through the day?
Educate on available options—“How familiar are you with the different types of care available today? Let’s review the available options.”
Establish awareness of the prospect’s actual state of health—“Are you currently being treated by a physician? Have you been treated for anything in the past five years?” If yes, confirm the condition(s) for which the prospect is or has been treated.
Provide the long-term care insurance solution —Create two quotes based on your clients issues, concerns and objectives. Whenever possible, change only one variable at a time—adjusting only the monthly benefit, benefit period, inflation option or death benefit.
When it comes to disability insurance, clients can give many reasons why they don’t have a plan in place. However, when it comes to three common objections, have a plan to help overcome those objections.
I’m young and healthy and won’t be unable to work!
Clients who are young and healthy often say becoming disabled won’t happen to them. The reality is that they may find themselves unable to work at some point in their career. If this happens, some clients approach disability insurance after they have medical conditions. However, pre-existing conditions often cause delays or declines during the underwriting process.
It’s too expensive! No one enjoys paying insurance premiums, but the benefits of having an income protection policy in force if a disabling event occurs can be priceless. It’s important for clients to know that income protection can be tailored to fit any budget and will provide coverage if the clients need it.
I have group disability insurance through work!
It's true; many of your clients probably have some sort of group disability coverage through their employer. And, it's also true that group disability coverage is a great base of income protection. However, all group coverage has limitations.
No one plans to become disabled. Help your clients plan for the unthinkable so they do not need to worry about their family or expenses if they experience an illness or disability that prevents them from working.
Many financial professionals are working through conversations with their clients relative to their investments, savings, and retirement. Clients are asking about the safety of their money and their retirement. In this environment, diversification, protection, and market upside are attractive alternatives for some of your clients.
The uncertain market environment may change and that may change the timetable of your clients’ retirement plans, but it doesn’t change the fact that they will retire at some point. If you are not writing annuities yet, now is a great time to start. Start the conversation now; talk with them about their concerns as they transition into retirement.