Everything an agent should know today.

Life Insurance Industry Sales Stall

Is the life insurance industry in a stall? According to this “must read” article, “the industry has consistently issued roughly six million policies a year since 1995 (NO GROWTH) and total premium has grown at an anemic annual pace.”

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Life insurance sales have remained relatively flat since 1995 with only an average of 6 million policies sold each year.

Reasons:

  1. Agents are focusing too much on price alone, instead of explaining the benefits of life insurance products.
  2. Products introduced with”ever more fantastical illustrations”; clients do not want products that are opaque, complex or intangible. They want to product and benefits to be broken down into non-industry speak and something they can easily understand.
  3. The lack of a level commission system that could result in “dramatically improved and simplified products and service for customers.”
  4. The purchasing process has become “invasive, arduous and drawn-out.” In other words, clients don’t want to go through the laborious process that the insurance carriers have put in place.

Low numbers of life insurance sales might be the norm for the industry but it doesn’t have to be for you! The simple answer is to ‘ASK’ for the business. The biggest problem I see agents or advisors making is a failure to ask for the life business. There is very little actual prospecting happening anymore. Most agents are just looking for leads, when in fact you have opportunities all around you everyday. The demand for life insurance is at an all-time high. The reason sales aren’t following is because consumers don’t know who to go to other than their auto agent or some commercial they see on TV or hear on the radio. But Life insurance has to be explained and most of the time the auto agent or person on the phone doesn’t know how to explain it other than quote a price. This is the “Perfect Opportunity” for the well trained agent to thrive! CALL PEGASUS TO GET THAT TRAINING AND HELP. IT IS THAT SIMPLE. $230 in life premium per week earns you $100,000 a year in commissions! SO WHATS IN YOUR WALLET? READ THIS ARTICLE, THEN CALL PEGASUS, (505) 298-2111.

It IS Easy To Sell Life Insurance

Agents make selling more difficult than it really is. The formula is simple, there are only 4 steps to every sale.

Step 1: Ask first, Then keep asking, until you set up a time for discussion (preferably in person, but not necessary).

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The four steps to selling life insurance should be the same for every sale.

Step 2: Focus on Love in your discussion; not fear. Explain that life insurance is simply a transfer of risk form your clients wallet to the wallet of the insurance company, which is a bigger wallet! Explain the benefits from life insurance can be obtained without dying, then go into Living Benefits of your product and the retirement income that could be generated if you don’t die.

Step 3: Take your prospect to the Pegasus website, (you are on it now), and show them the different companies and determine the premium that fits their budget.

Step 4: Take the app and then send it to us for processing and we will bird dog it for you. Or for an easier process simply go to your Viva Life link, answer 4 questions and submit the app and your policy is issued and delivered to your client in a week if approved. What link you ask? Call us for your link, (505) 298-2111. EASIEST TERM SALE ON THE MARKET TODAY! Watch this quick video about this amazing product. Yes, it is that simple!

Meaning of Life

A Life Happens survey says about a third of survey respondents think James Bond needs life insurance more than fictional characters (like Homer Simpson or Phil Dunphy of Modern Family) who are raising a family.  Bond has no dependents.  Homer and Phil do so why do consumers think Bond needs insurance more than them? Again this is a signal that many people have the wrong idea about what and whom life insurance protects. However, you can help simply by explaining life insurance other than getting a lot of money when you die!  (Which incidentally, is a message no one wants to hear).

Fiduciary Rule Due in October – What Impact Will This Have For The Agent?

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What will happen to the average agent annuity sales if this rule should pass?

The Securities and Exchange Commission said it will publish a notice of proposed rule-making for a fiduciary standard in October. The timing was revealed in the SEC Office of Management and Budget’s fall agenda. Yes, that would be October, 2016.  More information is available here.  If you are not aware of the damage
this proposed rule could cause an agent then you better get up to speed.  Our associate in CA, Tony Mouton, has made us aware of this pending rule that could bring upheaval to annuity selling as we know it today.  If you move money from 401k’s or 403B’s or IRA to annuities (and who doesn’t) then this rule will have an impact.  Some are saying that this could put the little agent out of the annuity business and turn over all this business to the big wire houses like B of A, Goldman Sechs, etc. 

Female Primary Income Families

A survey says more than 70%  (WOW!) of women who are the primary source of income for their families would like a financial adviser to help them talk about financial matters with their partnersPegasus has a presentation entitled “And She Didn’t Live Happily Ever After”.  You can use this presentation with your female prospects or use it for presentation in front of women groups and look like the expert.  CALL PEGASUS FOR THIS.  Imagine, 7 out 10 women want to talk to you!  So who are you talking to? 

Holiday Planning

It is said that most people spend more time planning their holidays than planning for the financial well- being of their family. However, the holiday season is a good time for advisors to encourage clients to discuss major financial and life issues. The issues that should be covered include where wills and insurance policies are kept and how end-of-life care and funeral services should be handled.  Again, communicating with your prospects and taking an active role with them is absolutely necessary.  I am booking appointments on weekends at my office with no problem to review wills and policies and complete a needs analysis.  CALL US FOR OUR NEEDS ANALYSIS.  People want to come to grips with their finances.  Don’t let a “No” stop you from talking to all those who will say “Yes”.

Selling Annuities is Simple

Annuities are simpler to sell than life insurance.  Less moving parts than life and there is no underwriting other than suitability.  The ingredient for annuities sales success is the same as for life insurance…ASK!  A simple question (if prospect is over 59½)  is “How much are you earning on your CD’s”.  Then quote our 2.55% CD 5 year CD annuity rate.  The average 5 year CD is 1.2%…half our interest…and they can access 15% per year of the money without penalty or surrender charges.  How much can they access without penalties on their current bank CD?  Once you get into this conversation then you can take your prospect into other areas such as FIA’s, retirement accounts, etc.  AND YOU HAVE THE PEGASUS TEAM OF CARLOS AND JANE TO ASSIST YOU WITH THESE PROSPECTS AND ANNUITIES!  SEE, SIMPLE!  ALL YOU HAVE TO DO IS CALL.

As you prepare for the holidays, we wish you Safety and Prosperity!!!

JD Moya

JD Moya

Founder

Founder of the Pegasus Group of Companies, JD has over 40 years experience in the Life Insurance industry. Working with carriers and agents across the nation he has earned an amazing reputation in the insurance industry while winning numerous awards. JD prides himself on still selling insurance to his personal clients and uses that wisdom while talking with agents about how to perfect their business and increase sales.