Life In The Fast Lane

Life in the Fast Lane By: Pat Wedeking

Life insurance is important…we all know that.  Life insurance rates have gone down significantly over the past 10 years as people live longer…many of us know that. Now life insurance is easier to transact… I know some of us might even challenge that one.  This article seeks to update you on the latest advancements in life insurance underwriting and how Smart Choice® is embracing this change making life insurance easy.

Americans are dangerously underinsured when it comes to life insurance; the opportunity to do the right thing for your clients and earn a significant income doing so has never been greater than it is today.  One of the largest life insurance growth markets in the world is the U.S. middle market and companies across the globe are recognizing this and investing in the effort to deliver life insurance to the masses.  As a result, there is more competition and prices have come down consistently for a decade. Recently, more and more companies are introducing new, better ways to get life insurance in force quickly.

Accelerated Underwriting Programs are hitting the market in a big way right now with different carriers introducing their version of Accelerated Underwriting each month.  These programs rely on data to assess risk as opposed to what used to be invasive bodily fluid draws asking your clients to give blood and urine to a medical professional they’ve never met in order to determine the proper underwriting class.  “What kind of data?” you ask, the list includes driving records, prescription data, credit scores, lifestyle index scores and the life insurance industry’s centralized database they call the medical information bureau (MIB.)  Add it all up and many actuaries are saying this is an equivalent way of assessing risk.

What was a 6, 8 or 10-week process can now be done in a matter of moments. Policies that used to be issued quickly at rates that are 200% to 500% of fully underwritten rates are now being issued at the same lowest rates available.

This is an evolution – or a revolution – so still most policies are underwritten the “old way” but more and more we are seeing products and processes that accelerate the process.

One of the carriers on the Smart Choice Quick Life platform, for example, has eliminated the need for blood and urine for all cases with face amounts of $500,000 and under.   Another carrier on this platform is offering some applicants the chance at the best prices without blood and urine up to $1 million and still another is reviewing all cases that fit a certain profile and giving us pleasant surprises with “Issued as applied for, underwriting requirements waived” messages often within hours of submitting the case to underwriting.

Yet another carrier has gone one-step further… the furthest of any carrier in the market today.  This carrier is instantly issuing policies up to $1 Million in face amount for all applicants who fit a certain profile and where data is available for consideration.  These are policies are issued on the spot, delivered electronically, with electronic payment and at a price that is most competitive.

Smart Choice has embraced this evolution and offers access to instant coverage through the expansion of the Smart Start program that we call Smart Start Life.  This makes Smart Choice among the select few in the country to have access to this product.  In partnership with InsureNOW, part of the largest distributor of life insurance in the United States, this program is available to Smart Choice offices nationwide.

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How to Sell (More) Life Insurance:

  1. Create awareness that you offer this type of insurance. We call this one “State Farm Sells Life Insurance” because this company is one of the top sellers of life insurance in the country simply by letting it be known that life insurance is available to their policy holders. No commercials, no pushing or pressing, just awareness.  Let your clients know that you offer life insurance.  Ask us, we can help you with email signatures, announcement letters and emails and even a customer friendly shopping mechanism you can link from your website.

Life Happens Pro ( https://lifehappenspro.org/ ) offers a simple, cost effective way to leverage best-in-class life insurance marketing resources to drive business to you.

  1. The one sentence that works. “Life insurance rates have gone down. Part of our service is to see if we can save you money so I am going to have our life insurance expert give you a call. Okay?”     When you get a “yes” to that simply enter the name and contact information into the Smart Start Life online form and you will hear from our life insurance expert that will act on your behalf.  Wait for commissions to arrive.
  2. Offer a Policy Review. “When is the last time you reviewed your life insurance progam?”  is another great question to ask.  They either say “Recently” in which case you can ask if you can review to see that they got the best price available – or they say, “It’s been a while” to which you can respond with an offer to do it right away – or they say, “I don’t have life insurance” which is your queue to help that family.
  3. Ask all Business Owners about Life Insurance. What can be an emotional, slow decision for families becomes a simple economic decision for most business owners. Buy Sell agreements and Key Person policies are some of the easiest life insurance sales you will ever make.
  4. Use a Quick Entry Process. Make your life easier with a new breed of processes that take the processing burden off your task list.  Smart Choice Quick Life and Smart Start Life are two of the best available.

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Brief Bio

Pat Wedeking is the Founding President of the Life Insurance Direct Marketing Association (LIDMA.org) and the Chair of the Life Happens. He is the founder of two life insurance distribution companies and now operates Crump’s InsureNOW platform.  Pat lives in

Increase your book of business using existing clientele

One of the best ways to increase the size of your book quickly is by tapping into your existing base of customers. There’s almost always more business to be had with your existing clients. Start by doing a review of coverage with each client. Then sit down with them and ask the right questions to elicit and uncover coverage gaps you can offer to fill. Use that opportunity to make them more loyal to you when you offer to shop their coverage and find them better coverage at a better price.
Start with your top premium clients and work your way down – selling personal lines to commercial-only accounts, and ascertaining if your personal lines clients have businesses you could potentially write for them. You already have a number of P&C clients on your book. What better place to look to increase revenue, than the people you already do business with? Not only does this increase retention and loyalty, it makes less likely your client will want to shop and move their business elsewhere down the road.

Should I join an insurance aggregator or agency network?

Many independent insurance agents, both new to the industry and established agents, at some point find themselves asking the question: “Should I join an aggregator or agency network?” Independent agents aren’t tied down by the restrictive contracts and obligations that captive agents are – but they face their own set of challenges as an independent business owner. This blog series will investigate the different types of groups that exist in the insurance marketplace, as well as the benefits and drawbacks of aggregators and agency networks.

Benefit #1: Access to markets and carriers

Perhaps the most obvious advantage, and the reason a majority of independent agents seek out these types of groups, is access to markets. What does that mean? It means independent agents don’t automatically have a carrier or insurance company they represent. They have to actively seek out contracts with multiple insurance carriers in order to offer their clients insurance coverage. The advantage for independent agents is that by representing multiple carriers, they can offer their clients more options, including TYPE of coverage plans, AND at the best price. Unfortunately, it’s extremely difficult to get markets when an agent first starts out in the business because they have no history with the carriers in the industry. They have to gain the trust of the carriers first. Agency networks and aggregators can help the agent achieve this by establishing a relationship with the carrier first. This means that the agency network is directly contracted with the carriers themselves, and then – with their pre-established relationship – helps agents they’ve vetted and contracted with themselves, become appointed to write business with those carriers.

Stay tuned for more in our blog series!

Off The Record

Off The Record
By: Josh Seibert, Sandler Training

The STORY:
Tim had mentally decided that the prospect he was talking to was never going to buy. For the past 20 minutes Tim had tried all of the trial closes that had worked in the past.

“I have to tell you Tim, I don’t know that this will do what I need.”

Tim had already tried the “what do you really need” response with no luck. Figuring he had nothing to lose and might learn something that he could use on other prospects, he innocently asked the following.

“Off the record . . . since you have decided not to buy . . . what are you really looking for?”

For Tim, the resulting silence was painful, but he really wanted to know the answer. If I can get this information, he thought, I can use it. So I’m just going to outwait the prospect.

Finally, and much to Tim’s relief, the prospect responded.

“Well, since you asked, off the record as you put it, here’s what I’m trying to do,” responded the prospect for the next five minutes.

At the conclusion of the prospect’s response, still convinced that he’d never close this one, Tim answered.

“That’s very interesting. So I suppose since we’re still off the record, you’ll never see yourself purchasing this . . .” and as Tim struggled to find the words to continue, the prospect jumped back in.

“Hold on a minute, Tim. I didn’t say I’d never buy it . . . and now that I talked out what I was looking for, well, you know, what you have might actually do it for me.”

The RESULT:
Perhaps Tim will make this sale. What Tim did do by going off the record was to subtly pressure the prospect into defining just what he needed. And by adding the assumption that the prospect was never going to buy, Tim was forcing the prospect to see a future where Tim’s product was not part of the solution. Either the prospect would view this future as good, in which case Tim never had a chance to make the sale, or bad. If bad, then Tim had an opportunity to make a sale. Off the record, how do you see it?

DISCUSSION:
Tim did not act like most salespeople. How many salespeople have the guts to state, “Off the record, since you have decided not to buy . . . what are you really looking for?” What is the salesperson afraid of when he makes this statement? Simple — the prospect is going to walk out the door. Consider this, if the prospect does immediately leave, then he never had any intention of purchasing. You’ve just saved yourself a lot of time.

The prospect who remains after hearing this question has no option other than to respond. What he says at this point will help you in determining whether he is a serious potential buyer or someone to follow up in a phone or mail sales effort.

APPROACH:
Pairing “off the record” with “since you have decided not to buy” accomplishes two goals for you.

First, “off the record” suggests that now you and the prospect can talk freely. Neither of you will use what is said to make or break the sale. Of course, this is ridiculous. Anything the prospect says will be used by you to either pursue the sale or end it. But just the phrase, “off the record,” often achieves the goal of getting the prospect to reveal what his concerns are.

Second, “Since you have decided not to buy” forces the prospect to bring the future into the present. In other words, he perceives right now what it will be like without your product. If his concerns are painful enough, seeing the future today is often enough to get a prospect moving toward purchasing.

THOUGHT:
Giving the prospect a way to see the future often helps the prospect buy today.

Josh Seibert is the president of Training & Development Solutions, Inc., Sandler Training located in the Piedmont Triad.  He can be reached at 336-884-1348 or www.training.sandler.com

©Sandler Systems, Inc. All rights reserved.

Understanding Contingency and Bonus Requirements with Your Insurance Carriers

Understanding Contingency and Bonus Requirements With Your Insurance Carriers
By: Michael Miller, Smart Choice® State Director

As an insurance agent, your business lives or dies on the amount of new and renewing policies you sign with your carriers. Years ago, how you got paid was fairly straightforward: you got paid a percentage of the premiums you signed. But carriers have changed the way they compensate their agents.

Today, agents earn a complex combination of commissions, contingencies, and bonuses, each calculated a little differently. Understanding the math can be a full-time job, not to mention figuring out how to maximize your earnings.

Contingency Commissions Reward Performance

You’ll always make a little money on each premium you sign, even if you only sign a few dozen a year. But carriers offer sizeable contingency commissions for agents who set and meet goals for production, retention, and profitability. These rewards are contingent on you meeting these goals.

What’s tricky about contingency commissions is that you never know how much more you’ll end up making as you sign on new clients. The contingency is earned after you meet your goals for the year. When you’re writing a policy in January, you won’t know whether you’ll actually meet your contingency requirements at the end of December.

Bonuses Honor Excellence

Insurance carriers often award agents who go above and beyond with bonus income. Sometimes, carriers run special sales contests for agents to compete in. Other times, they’ll allow a loyal agent to charge them interest on any new business the agent brings in for them.

Getting the Most out of Your Appointments

Contingency and bonus income were initially offered only to the largest agencies, which had the staff and book of business large enough to hit production targets. But that’s changed in the last 25 years. Today, small agencies can compete for this extra income if they’re able to meet the requirements.

Joining an agency group can be a way to increase your chances of earning contingency and bonus income. Agency aggregation pools together the resources of multiple small agencies so they can compete with the larger players. That’s why many independent agents choose to join Smart Choice®. To discover why a partnership  is the smart choice, connect with Smart Choice® today.

 Source: Property Casualty 360