BSMG Blog: Protecting the Future of Families and Businesses

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 

Life insurance is a powerful asset that demands a place in your client’s financial portfolio due to its unique risk and return characteristics. Did you know that the underlying mathematical principles dictate that life insurance is the highest returning, safest asset a client can own?

Portfolios, regardless of the size, should be as diversified as possible, right? Well, whereas most portfolios include real estate, stocks and bonds; life insurance is often overlooked. Now, with solid IRR mathematics, you can add the tax-free asset of life insurance to the mix as well. 

What Financial Advisors Need to Know

Women today are working more, earning more and taking an increasing role in their family’s financial planning. For advisors, a focus on women - with a understanding of their needs, and a willingness to approach financial planning in a way that works for them - can result in a solid client base.  

In general, women are loyal. If they’re satisfied with their advisor relationship, they’ll be more than willing to provide referrals.  In fact, recent surveys have revealed that more women look to a financial professional for advice before family and friends or even a spouse or partner. The same surves publicized that nine out of every ten of the women who participated took positive steps after receiving advice. These steps included making changes in their spending habits, increasing the amount they save each month and setting up an emergency fund.

Looking for a way to tap into this potential? Here are seven lessons for serving your female customers.