Too often, we find that many life insurance policies are in an individual’s sock drawer and hasn't been looked at for years.  Also, too often, an "annuity based" advisor never asks about the life insurance owned by their clients and prospects. That is too bad, because it could be one of the most important things you do for your client and for you.  Allow me to give you a short explanation: 

Many times, the life policies owned by Americans were purchased when interest rates were much higher. These, usually universal life policies, had assumptions based on the higher rates and lower internal charges. But, where are we today?  Interest rates are much lower, insurance companies are having a rough time earning the necessary spreads and administrative and mortality costs aren't what they planned.  So, many times, your client gets a statement that says "based on current premiums, your policy will lapse on xxx date.”  Or, "If no further premiums are paid, your policy will lapse on x date."  So, what to do?

Ask your client to get the policy and the last statement.  Ask the insurance company to produce a re-projection based on the current interest rate (or guaranteed rates), the highest mortality costs and the highest administrative costs.  Then ask the insurance company to tell your client what needs to be paid in premiums to guarantee that the policy won't lapse.  When that comes back, you advise your client on how to proceed… if the policy is good, or if they have to increase the premium, reduce face amount, or… allow you to shop the market for guaranteed premiums they can afford, a death benefit they desire, and the good feeling that the death benefit will be there when they need it. 

So, what do you do now?  Call Levon or one of our other marketing consultants to assist you in this life insurance review.  Manage the life insurance asset like you would manage any other. Everyone wins at this.

I don't know if what our country is going through is the "new normal" or just the way it is right now.  But, we would be foolish to think that the current "COVID-19" environment has not changed the way the public acts, reacts and plans in every part of their daily lives. That is also true in the financial services business.  Consumers will continue to be desirous of our products, but may choose to learn about our solutions in a different way. 

So, back to the title of this commentary... Problems vs. Possibilities.  That is right. We are also consumers, and change is tough.  For financial pros, we need to look at the possibilities and be bold in going after them.  This is not a time for baby steps.  This is not a time to think that things will go back to the way they were before.  They will not.  The insurance industry was always the slowest to embrace digital technology.  That is not the case today.  We have online apps, no exams, delivery via email and selling across state lines (as long as you are licensed).  So, I suggest you take some steps today and we can help.

First, can recommend some summer reading?   I suggest you re-read  "Who moved my cheese?"  Also, an old favorite of mine, "The Master Key to Riches," by Napoleon Hill.  Next step, talk to one of our marketing associates and investigate our digital/internet consumer lead program.  See if you area is available.  How about investigating our mentoring program regarding digital sales. That is right... all done via ZOOM or another tool.  How about ZOOMING your clients about a life insurance review.  Did you know that many policies will lapse due to increased internal costs?  We can show you how to remedy the situation.  

In closing, maybe you just need to talk. Fine, give us a call and let's start taking advantage of possibilities vs. focusing on the problems.

I don’t know about you, but I can have a very optimistic day, go to bed and wake up to news that can slow my step regarding this virus.  Let’s start out by saying that we all know that there are risks.  But, none of us really know when or how it will affect all of us.  This COVID-19 has been compared to wars, depressions, dust bowls and more. As we know, this is a war without a playbook. So, I think that we take the information we have, reflect on the past to gain insight, mange our risk and move forward.  That is the “American Spirit.” So, what do we do?  Do something… just get moving.  I think that we have to come to grips that people will handle these risks in different ways.  Businesses are adjusting and moving forward.  Sure, in many cases, they are baby steps.  But, they are moving and doing something.  So let’s focus on the financial services business.

Never have Americans needed our services more than today.  Let me give you an example:  yesterday, I spoke with my sons and partners, Nick and Joe, and asked them how our Digital Marketing consumer lead program was going.  They informed me that the number of leads following the Memorial Day weekend were extremely high.  I also found it interesting that the highest number of leads came from areas where the states were slower to open.  Bottom line, these Americans can’t wait for “complete answers” because there is no playbook.  We are also experiencing a high level of virtual sales.  Yes, first contact by phone or ZOOM, followed by another virtual fact finder and needs assessment, the presentation of a solution, the close and the e-app.  Who would have thought that this pandemic would bring the financial services industry into the “tech” world.  We were slow to enter, but now we are off to the races.  Okay, so you might be thinking… what do I do, when do I start, etc?  Let me give you a suggestion.

Let me first go back to my title… Do something and do it today.  Get a list of your clients and schedule virtual reviews and find out about their worry buckets.  Ask for a virtual family meeting with their kids. Introduce yourself, explain what their parents have done, review beneficiary designations, and then go through essential and discretionary income needs.  Look, the families are concerned and want to know that their parents are taken care of.  Think that this might lead to doing business with the heirs?  Think that they might entrust you with the proceeds after the parent dies?  I don’t know… but I think that this is an easy way to go forward.  Need leads?  Try our program.  Want direct mail?  We can direct you to the right sources.

I watched the news this morning and there is enough negative news to make you want to go back to bed. Remember, bad news sells viewership.  Let’s spread the good news.  We are upright and have the greatest opportunities in America.  We will all get through this and be better off.  And, don’t discount that things are improving.  Yes they are… there is no doubt about that.  So, manage the risk, do something and get moving. You can‘t get the time back and life is short.