A majority of automobile makers have extended their warranties over the last decade .... how and why are they doing this? Will this cure their ills? OR ... do they believe that the American buyer is looking for dependability? Is the American buyer looking for safety? I think so.

You see, they are not just advertising the, “fastest car on the market", “new sound system", “fancy flashing lights”, or “cup holders”. Automobile companies are mainly advertising the basics ... a car you can count on through thick and thin, a car that is backed by guarantees, and a car that will get them to their destination at an affordable price.

All of this rhetoric and change in the auto business made me think about the insurance business. Don’t we offer:

• Dependability?
• Guarantee of principal?
• Access to money in bad times?
• Safety?
• Service?

If the auto industry is correct in their thinking, I think we need to examine our financial services industry. We have made our products very complex, sometimes hard to understand and many times hard to explain. Maybe we are focusing too much on the “add-ons” and not on what our clients want.

Ask your client what’s more important – for example:

• SPEED— (the opportunity to hit an investment home run)
• SAFETY & DEPENDABILITY-- (can’t lose principal or previous gains)
• FANCY SOUND SYSTEM— (19 different crediting methods)
• ACCESS to cash when needed and an income they can’t outlive

In closing, safety is king and dependability is a close second; it’s what our clients want. Keep it simple and sell the benefits not the features.

Until Next Time, Good Selling!
Raymond J. Ohlson, CLU, CRC
President and CEO
The Ohlson Group & SMP International LLC

The more you know about a certain topic, the easier it is to make a sound decision. This comes into play with almost any transaction we make. And, it doesn’t always have to be financial. There is an old acronym from Mondel-Netics (Main Event Management). That model is KASH.

KASH stands for knowledge, attitude, skills and habits. In short, the more knowledge that you have on a certain topic, the better your attitude, the better your skills in promoting, which then becomes a habit. No one does a better job of supplying our industry with knowledge than Dr. Jack Marrion. And, he’s done it again. Please read on…
 
Dr. Marrion has just launched an educational/informational website. The site is www.volcontrol.com. If you or your clients have difficulty understanding volatility control measures with FIAs, then www.volcontrol.com is just what the Dr. ordered. This is not a product site, a marketing site, or a site supported by a life insurance company. The Ohlson Group is proud to have made a contribution towards the development of this site, and we will continue to financially support the maintenance of the site.  Thanks again to Dr. Jack Marrion for being a leader, and an instructor in this industry. Please check out the website, and prepare to feel the light bulbs go on in your head.

Until Next Time ... Good Selling!

This is part of Jack Marrion’s Safe Money Places™ presentation. He basically says that the only way you will lose money in a “safe money place,” is if you “choose to lose.” That’s right … you only lose when you break the rules. 

Here are some examples of choosing to lose: Withdrawing a CD early, surrendering an annuity before the end of the surrender period and redeeming savings bonds too early (you simply will not get your next interest credit). Let’s examine the difference between this scenario regarding potential loss versus an “at risk” place.
 
First off, let me be clear that I am not saying that a safe money place is better than an at risk money place. Or, for that matter, that an at risk plan is better than a safe money place. I believe that there are times and places for each. I for one, have safe money places AND risk money places. But the big difference is that in a risk money place, you can lose money due to circumstances outside of your control. These can be natural disasters, wars, inflation, or unnerving world events. Do you think this might concern our clients? I sure do.
 
We have a great opportunity and a tremendous responsibility when dealing with our clients. They have a lot to say and a lot on their minds. Are you inviting their conversations? Are you listening? If you are, then you are picking up tremendous buying signals and you are probably very successful. Because they are telling you that they are concerned about Long Term Care needs and want a solution – notice that there are a deluge of annuities and life policies with LTC riders hitting the marketplace. You are also hearing that big time increases
in their accumulation accounts are not the #1 deal on their hit parade. It’s the income. Allow me to repeat … IT’S THE INCOME — notice all the new income planning software and seminar programs hitting the market?
 
In closing, the next 10 years will be very sorry years for financial services advisors that are not listening and that are approaching clients in the same old way. It will be the most successful for professionals that are taking their responsibility seriously and are operating in an ethical and credible manner.

Allow me also to opine that we have a potential liability. Are you offering long term care insurance to your clients? If they decline are you having them sign a hold harmless agreement? I think you should. Are you conducting audits on their life policies and re-pricing their term insurance? What about this hot potato
— are you discussing life settlements with your senior clients that feel they no longer need all of their life policies?
 
Whew! Makes your head spin, doesn’t it? So, connect with a marketing organization or agency that can lead you to profitable pastures and act as your shepherd. You can always lose due to circumstances outside of your control. But, there is no reason to “choose to lose.” Play it safe and give us a call at 1-877-844-0900 or email us at [email protected].