BSMG Blog: Protecting the Future of Families and Businesses

Whether purchased for accumulation, retirement income or for the death benefit, life insurance has many tax benefits. With tax season in full swing, there's no better time than the present to educate your clients on the unique tax advantages associated with owning a life insurance policy.

We asked our in-house tax expert for a summary of the tax advantages of life insurance versus other asset types including; IRAs, NQ Deferred Annuities, Corporate Bonds and U.S. Government Securities. These are the top 6 tax advantages worth discussing with your clients.

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. 

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?”

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.