As we all know, too many clients are sitting on the sidelines, nervous about where to put their short- and long-term savings. This has caused a real roadblock for seminar marketing and direct mail prospecting. People don't know whom to trust; therefore, they are not anxious to meet new agents.
As a marketing organization, we have the benefit of hearing from many who are, in fact, having success in new sales. Their secret is getting back to basics, a very simple strategy that too many times is overlooked in the quest to try new prospecting techniques. Go back to your database and get appointments! Every agent that has used this approach makes additional sales and gets introductions to other family members and new prospects easier. If a review had been done prior to Sept. 2008, it is now obsolete, due to the market crash. Clients want and need discussions, reassurance and your expertise to feel more comfortable in their understanding of what has happened and where the future may lead them in their planning for accumulation or income during retirement.
Opportunities for fixed and immediate annuities have never been greater. They offer no down-side risk, and give the opportunity for continuous growth, albeit modest. These accounts will increase, guaranteed. Some percentage of your clients' portfolios should be repositioned to lessen their exposure to volatility.
Life insurance has also created new opportunities because people need to buy at least term insurance and wait for their portfolio to recover in case they have a sudden illness or death. Their family would at least receive the tax-free proceeds along with what is left in the retirement account. Many clients buy universal life, indexed universal life or whole life as another way to save money. This affords them the ability to use their loan provision when cash is needed for educational funds and/or supplemental retirement income.
Long-term care is increasing in sales, as those who always used the excuse, "I'll self-insure," no longer have the extra dollars to pay for care when needed.
Disability income can offer opportunities, as benefits have been cut or reduced at work, and too many people are losing their jobs. Having a personally owned disability income policy that is portable, no matter what happens in the future, can be a real value to many.
Updating beneficiary designations may be another reason to schedule an appointment. Family dynamics create changes, and these changes may not have been communicated to the insurance company that insures them.
Cash flow strategies are also key to a client review. Here at Underwriters Marketing Service, we offer agent support using reverse mortgages to improve or maintain lifestyle. Seniors age 65 or older have mortgages -- almost half of this age group do! A reverse mortgage will get them out of the mortgage payment, and this frees up a monthly cash flow that can be used to buy long-term care or life insurance. Perhaps they are looking at the losses in their retirement account, and are worried about their money lasting long enough. The tax-free income from a reverse mortgage allows those seniors to stay invested and not take money out of their portfolio. This "extra" time in accumulation enables their retirement account "grow back" over a period of time.
I encourage you to take this simple approach -- go back to the basics and make more sales!
Mary Ann Lacey-Gray, CLTC, is President and CEO of Underwriters Marketing Service, Inc., a national marketing organization offering sales and marketing support to insurance professionals in the areas of life, annuities and long-term care. UMS Headquarters is in Mount Laurel, New Jersey, with sales offices in Maryland and Florida.
