BSMG Blog: Protecting the Future of Families and Businesses

6 Steps To Building A Successful Life Insurance Sales Strategy Using the "Balanced Approach"

Most of your clients face a dilemma as they find their life insurance needs shifting. They can either: 

• Insure their highest level of coverage needed, even though it could be years from now, or
• Insure their lowest level, all but guaranteeing they’ll be under-insured in the future.

Whether they are clients who are considering buying insurance for the first time or ones who realize that their current policy isn’t enough, finding the right balance is an important concept. 

What is your 2017 vision for your practice? Do you have a system setup to support your goals? Perhaps you have a similar goal from years past or good intentions of putting a plan together, but are overwhelmed on where to start. We've compiled key steps to simplify the process so you can optimize your insurance prospecting efforts, sell more life insurance and deliver on these goals! 

The Challenge:

The client, a highly successful business owner in his 70’s, was sold a permanent life insurance policy funded through a Premium Financing arrangement. He had become concerned about the current performance and whether or not it was still the best product for his situation. With a shared concern, his agent dug deeper. What he found as he dug into the details of the case was a very challenging situation, one which needed fixing.

As the White House begins to change over its residences, let's take a look at the requirements one must take to change their state of residency and the state tax implications involved.  You may have wealthy, older age clients from high tax states considering a move to a lower-taxed state to save money. This typically involves state income taxes on retirement benefits and state estate taxes on net worth/gross estates. 

Estate and gift taxes have provided a source of revenue for the United States government for over 150 years and have had many variations. Now that we'll have a Republican president and a Republican majority in the Senate and House of Representatives, what's in store for the future of these taxes? To fully understand how Estate and Gift Taxes could be affected by the political and economic environment, let's take a look at a brief history of how these taxes have evolved. 

At one point or another, you have encountered a client who has multiple IRA accounts that may have been created at different times with different funding products. You may have even recommended two separate IRA accounts to a client, each with different financial purpose for different designated beneficiaries. In either one of these events the US Treasury Regulations treat certain IRA accounts differently when it comes to distributing IRA Required Minimum Distributions (RMD) from these accounts once the client reaches age 70½. 

One of the most important planning issues confronting a business owner is what happens to his or her share of the business upon death.

We're sure you know that you can't grow your business without growing your sales pipeline. Successful sales lead management begins with identifying prospects who have expressed an interest in your products or services. Life Insurance leads can come from a variety of prospecting efforts such as lists, social media, direct mail or email. Regardless of how you find these leads, it is important to always nurture them, a forgotten lead is unlikely to become a customer. Below are tips on how to handle and track each new lead as well as grow your lead base.

Here are 8 Communication Tips for Insurance Agents to Attract Clients Who Own a Business:

• Use a local phone number instead of an 800 number.
  
  
• The best time to approach owners is Tuesday, Wednesday or Thursday.
  
  
• Send a personalized email:
  • Personalized subject lines indicate that the content is relevant to the owner or business, and increases panelists’ likelihood to open an email.
  • Send the email from an individual, rather than a marketing inbox.
    
    
• Send personalized direct mail or letters: Use results-driven language (by doing this, you will get that).
  • Hand-addressed card-sized letters are opened most often.
    
    
• Simplify and speak in terms that are easy to understand.
  
  
• Incorporate messaging about ROI, rather than price.
  
  
• Be sure to follow-up:
  • Follow-up even if you are told no, but provide educational information when you do.
  • The owner may not buy now, but follow-ups may help you get the business later.
  • Advise with frequency tailored to their needs.
  • Use non-evasive regular touches by checking in every 60-90 days after the initial point of contact.
  • Perform more of a branding call vs. a sales call: Example: “This is John Doe, from Mutual of Omaha, checking on how your business is doing and reminding you that I’m here if you need me. Would you like me to follow-up monthly, bimonthly or quarterly?”

The Biggest Pain Points of Small Business Owners