Marketing Corner – Overcoming 5 Common Life Insurance Objections

Marketing Corner – Wednesday August 30th, 2016

Overcoming 5 Common Life Insurance Objections

**this post is the third entry into Legacy Financial Partner’s coverage of Life Insurance Awareness Month. Check out the first two posts here, and request our complimentary LIAM kit here.

Even with a greater amount of consumer education than in previous decades, selling is still an important aspect of connecting prospects to an appropriate insurance solution. A big part of selling is dealing with objections. Here are five common life insurance objections you’ll likely face from consumers and what you can do to overcome these objections.

“Life insurance is too expensive!”

This is probably the most common objection you’ll hear from consumers. It’s true that life insurance premiums can initially be jarring, but remember that expensive is a relative term. Plus, consumers often overestimate the cost of insurance. The latest Insurance Barometer Study found that the median estimated yearly cost for a 250,000 term policy for a 30 year-old non-smoker was more than double the actual cost.
Ask/tell the consumer:
“When was the last time you looked at insurance prices?”
“Do you know that there are many types of life insurance to meet a variety of needs?”

“Did you know that most people overestimate the cost of life insurance?”
“The best way to get a true picture of the cost of life insurance is to use the latest software quoting tools based on your specific situation and needs.”

“I don’t need life insurance.”

This objection can be the result of many factors. The consumer may not be properly educated on the utility of life insurance or may have some misconceptions about how life insurance works. Perhaps they are young and would rather use money that could be used for insurance premiums on more immediate needs. It’s possible they only think of life insurance in terms of the death benefit.

Ask/tell the consumer:

“What would happen to your household if you died today?”
“Who would take care of your debt, pay the mortgage, or cover your child’s college tuition?”
“Are you aware that many life insurance policies have living benefits—things that can help in the case of a disability or chronic condition? Some even have cash you can use throughout your life.”

“I don’t qualify because of health issues.”

This objection arises because consumers are aware that many life insurance policies require medical underwriting. But like other aspects of life insurance, they may have misconceptions on how this process works or impacts their options.

Ask/tell the consumer:

“Did you know there are certain types of insurance that are guarantee issue?”
“Just about anybody can qualify for a life insurance policy—there are many different types that account for many different situations.”

“I have money saved up.”

It’s possible that a consumer feels that they have enough money accumulated through savings and other assets that they don’t need life insurance. Maybe once they give you a peak at their financials they do—but this presents an opportunity to discuss efficient wealth transfer and estate planning options. If they don’t, explain what the average cost of retirement is. According to the U.S. Dept. of Labor, the average household will use nearly 41,000 per year in retirement. So if a household retires at 65 and expects to live another twenty years, the retirement amount used for this time period will be $820,000. Converting a large sum of savings into a cash value life insurance policy can help clients achieve a robust source of retirement income on top of a death benefit.

Ask/tell the consumer:
“Are you aware that you can use life insurance to transfer wealth in a more tax-efficient manner? This can be true if you want to endow a charity or transfer to family members.
“Given what we know about life expectancies and inflation, are you confident that your savings of _______ will give you the retirement you desire?”

“I already have life insurance.”

This should be an easy objection to overcome. If a consumer already has a policy, find out when they purchased it, what type it is, and if they have been any significant life events. A good financial plan, whether it involves a life insurance product or other solution, should be reviewed periodically to make sure it still matches the consumer’s needs and objectives, and to see if there are other opportunities.

Ask/tell the consumer:
“When was the last time you had a policy review?”
“Have you have had a new child since you purchased it?”
“Do you know if your policy still meets your needs?”
“According to a recent survey, nearly half of those who stated they have life insurance may be underinsured.

Complimentary Life Insurance Awareness Month Kit

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Tuesday Tips – August 30th, 2016

Alerts

Protective Lowering Rates

Protective has announced effective 8/29 they will be lowering rates on their term products. There will be an everage decrease of 1.5% across all term periods and for select preferred, preferred, and non tobacco rate classes.

Rate Decrease

Athene and Voya have announced rate decreases on their suite of FIA products. Voya’s rate decrease will take effect 8/31 and Athene’s rate decrease will take effect 9/3. Call today to get updated rate sheets.

Sales Concept

Costs in Retirement

Most consumers don’t have any idea what the biggest costs in retirement will be. One thing they probably aren’t expecting is the percentage that taxes will make up of their costs in retirement. Planning properly and diversifying between taxable and non taxable cash flows in retirement is a key component of a sound financial plan. Available for download is a great infographic that breaks down costs in retirement that can be used to articulate the various costs that can impact a clients retirement plan.

Industry News

Annuity Premium

A recent study by LIMRA found that sales of FIA’s could increase as much as 20% this year but, the DOL rule could cause a decrease in 2017 by as much as 35%.

Hot Rates

American National

American National offers a competitive GUL with rolling targets that has just got even more competitive. They are now offering a table shave down to a table 4 for clients up to age 70 for certain impairments. In addition to this they also offer a return of premium on their GUL. Call today to get additional information.

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Marketing Corner – 16 Interesting Stats for LIAM

16 Interesting Stats You Can Use During
Life Insurance Awareness Month

In last week’s Marketing Corner, we discussed the value of life insurance awareness month and how consumers greatly underestimate the cost of life insurance. This week we wanted to present interesting statistics that you can use as you discuss life insurance with your prospects. These stats give you insight on a variety of area, including the cost of college, mortgages, and long-term care. These details are important because life insurance can be used to cover many of these expenses, especially in the case of blended products with regards to long-term care.

Check them out below. Don’t forget to request your complimentary copy of Legacy Financial Partner’s 2016 Life Insurance Awareness Kit, which includes:

  • Marketing Guide For Leveraging Social Media
  • Customizable Fact Finders
  • Customizable Prospecting Letters
  • Customizable Marketing Flyers
  • Life Insurance Prospecting Ideas
  • Client Presentations
  • Over 15 FINRA Approved Concept and Presentation Pieces
  • Life Insurance Powerpoint Seminar Presentations
  • Customizable Press Releases

Life Insurance

According to the latest Insurance Barometer study from Life Happens:

One out of three households indicated they would have immediate trouble handling living expenses with the loss a primary breadwinner.

The majority of people prefer to buy life insurance in person. Only 1 in 5 prefer to apply online.

The median estimate for a 250,000 term life policy was more than twice the actual cost.

The top three financial concerns for consumers is having enough money for a comfortable retirement, paying for long-term care, and paying for medical expenses.

A 2016 Gallup poll finds that the top concern is not being able to pay medical costs of a serious accident or illness. All concerns addressed by the poll have risen since it was conducted in 2015.

A 2015 Bankrate Money Pulse survey found the while around 6 in 10 individuals reported having some form of life insurance, nearly half may be underinsured.

Banks often use life insurance on key personnel to fund employee benefits and as a tax shelter for assets. More than half of U.S. banks hold some form of bank-owned life insurance assets, according to a review of FDIC data from 2013.

College

According to the College Board, the average published yearly tuition and fees for a public four-year university is $9,410. Assuming a student graduates on time, the base cost will be $37,640. This doesn’t account for other expenses like housing, food, and books. And, according to a 2014 report by Complete College America, most students don’t graduate in four years.

A private four-year university will of course be more expensive. The College Board averages $32,410 a year for private colleges. Assuming a four-year graduation period, this amounts $129,640, or a little over half the total cost of raising a kid.

Mortgage / Home

80% of Americans have some form of debt. Of these, 44% have mortgage debt.

The median home loan balance is just over $100,000.

Long Term Care

According to longtermcare.gov, in 2010 the average cost of a semi-private room in a nursing home was $6235 per month, care in an assisted living facility was $3,293 per month, and $21 per hour for a home health aide.

Genworth, in a study conducted with CareScout of April of 2016 finds that the national medians for monthly care have risen since the government stats of 2010. For instance:

care in an assisted living facility is $3,628

care in a semi-private room is $6,844.

Consumers underestimate the cost of home healthcare by nearly fifty percent.

Complimentary Life Insurance Awareness Kit

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your complimentary copy.

Tuesday Tips – August 23rd, 2016

Alerts

Equitrust Raises Rates

Equitrust has raised rates on their MYGA series. They are now offering a 3% rate on their 8year as well as 3.25% on their 10 year product. In addition to this the product writes to age 90. Call today for details.

AXA Closing CT Office

AXA has announced it will be closing its Farmington, CT office in April 2017 and will be transitioning staff to their Charlotte, NC office. The move is being made to improve the customer service experience for advisors and clients alike.

Sales Concept

Prospecting Ideas

In this business it’s easy to fall into a rut or for marketing to become stagnant. Having a consistent marketing plan and trying new marketing activities is key to consistent success. Available for download is a great marketing guide with 16 prospecting ideas to get in front of consumers.

Industry News

Online Life Insurance

A recent LIMRA study found that 85% of consumers research life insurance online before purchasing. Nearly half of those purchased life insurance online or over the phone. In today’s day and age having a robust web presence is an integral part to any advisor’s practice.

Hot Rates

American Equity Traditions Gold

American Equity’s Traditions Gold is a 10 year product designed for accumulation. It offers several different index options with annual PTP caps as high as 4.5%. The produt writes to age 80 and also has an optional income rider available. Call today for details.

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Marketing Corner – Life Insurance Awareness Month

September is Life Insurance Awareness Month


handshakeliamSeptember is Life Insurance Awareness Month. This is a great opportunity for advisors to discuss life insurance solutions with prospects and clients. Many consumers, and even some advisors themselves, are unaware of the variety of needs life insurance can meet.

The modern life insurance landscape goes far beyond securing a death benefit. With accessible cash value policies, life insurance can be used to protect an investable sum from market volatility, to generate an alternative source of retirement income, to help a business survive the death of a key partner, and so forth.

Consumers consistently overestimate the cost of life insurance. The 2016 Insurance Barometer Study conducted by Life Happens and LIMRA—the main organizations behind LIAM—found that the median estimated yearly cost for a 250,000 term policy for a 30 year-old non-smoker was more that double the actual cost. Other key barriers include other financial priorities, consumers feeling they have as much as they need, or confusion on what types of insurance to buy. These are all barriers that can be broken, through education and care.

Life insurance awareness month is your chance to refresh or learn creative uses of life insurance that can help you bring in a stream of clients. With many programs from carriers and trade groups, you have access to a wealth of resources to do this.

In fact Legacy Financial Partners has a comprehensive LIAM package available for agents and advisors. This complimentary kit includes:

  • Marketing Guide of Leveraging Social Media
  • Customizable Fact Finders
  • Customizable Prospecting Letters
  • Customizable Marketing Flyers
  • Life Insurance Prospecting Ideas
  • Over 15 FINRA Approved Concept and Presentation Pieces
  • Life insurance Powerpoint Seminar Presentations
  • Much more.

Request your complimentary kit below or by simply filling out the form to the right.

Visit our dedicated page: http://legacy-financial-partners.com/LIAM/

Complimentary Life Insurance Awareness Kit

Fill out the form below to receive
your complimentary copy.

Tuesday Tips – August 16th, 2016

Alerts

Great American Rider Changes

Great American has announced they will require the purchase of an income rider with the contract effective September 12, 2016. As such the issue ages on the contract will now coincide with the issue ages of the available income riders.

F&G Introduces Death Benefit Rider

F&G has introduced a new death benefit rider available on the Retirement Pro FIA that has no explicit fee. The new rider will pay out a death benefit over a period of years based on issue age and is the lesser of the benefit base, 200% of net premium, or net premium at 10% annually. Call today for details.

Sales Concept

Life Insurance Awareness Month

September is right around the corner and that means life insurance awareness month. During the month of September there is a significant uptick in marketing and advertising around life insurance. This can be a great opportunity for some life insurance focused marketing. LFP has put together a complimentary life insurance marketing call to request your kit today.

Industry News

Household Debt

A recent study by the NY Fed found that debt reached $12.29 trillion in the second quarter of this year. This represents a $434 billion increase over last year year.

Hot Rates

Athene Ascent Pro 7

Athene’s Ascent Pro 7 is a short 7 year surrender FIA. The product offers 10% free withdrawals starting in year 2 as well as 2 income rider options. In addition the product offers competitive upside potential including an annual point to point cap of 4.25%, a 2 year uncapped strategy with 100% participation, and several other crediting options. Call today for details.

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Marketing Corner – More Tips For Content Marketing

Marketing Corner – Wednesday, August 10th, 2016

More Tips for Content Marketing 

Advisors, especially older ones, often struggle with making heads or tails of content marketing. With so many platforms and channels, each with their own style of engagement, it can seem daunting. While there can be advanced technical strategies, the core of content marketing is pretty simple. Used in an efficient manner, content marketing can be a valuable strategy that doesn’t take too much of your time to maintain.

Here are seven simple tips for developing your content marketing strategy:

businessmancompBe Consistent

One of the key ways advisors fail with content marketing is consistency. It will generally be better to have regular posts spread over a larger time period than a short burst of content. Advisors that do the latter often find that they don’t have enough topics or material to maintain a consistent flow. If you wait to be inspired, you’ll find that you won’t be able to engage with your audience regularly. This can kill any momentum with the audience you have built or prevent your audience from growing further.

Have A Mix of Styles and Formats

Your content can be a simple update, a short summary of a relevant article, an in-depth piece explaining a solution, or a list of things your audience needs to know. While having a few standard styles can be helpful to plan your content strategy and let consumers know what to expect, mixing in posts that are shorter, longer, or composed in a different style, helps to ration your content. It also may help to reach a wider variety of consumers—those that like longer articles, those that like lists, or those that like short status updates, etc.

Demonstrate Your Expertise and Experience

Your content should reflect your skills and knowledge, with consistency. You don’t know what might trigger a reader to call you for an appointment, so discuss a variety of topics with competency and meaning. Even if a topic isn’t relevant to one type of consumer, the fact that you write about it truthfully and can relate it to those consumers for which it does matter, demonstrates the breadth of your knowledge.

businesstieDon’t Be Afraid of Personality

Obviously you want to present content that is professional and compliance friendly. But within these guidelines there is a way to write in your voice. Personality goes a long way to making complicated topics go down smooth. People relate to you more, because you are not just a robot churning out boring copy, but rather a human being composing relatable content.

Use Clear Photos and Branding

You will likely use a variety of platforms to distribute content and build an audience base. This is your website, LinkedIn (great for advisors), Twitter, email distros, and even Facebook (becoming more and more relevant for advisors). Ensure that supporting elements such as profile photos, headers, and logos, are sized correctly. Have a decent headshot. Be honest with yourself. If the profile photo you use on LinkedIn makes you look like vampire, get a better shot. If the photo you use is great, but shows up pixelated, use a higher resolution.

Don’t Be Too Aggressive With Those That Engage With Your Content

So you’ve been using a content marketing strategy for a while, getting engagements such as likes or comments. Your instinct is probably to turn these consumers into clients. This is, after all, the ultimate goal. But being too aggressive can turn off a consumer. The difficulty with engaging people through your content marketing channels is knowing when you cross the line from business to personal. With Facebook and Twitter, you generally shouldn’t send an inbox message to a consumer that responds to a public post. In LinkedIn, it may be appropriate. The difference is that LinkedIn is primarily used for building business relations, while Facebook and Twitter have large user bases that are personal. Engage consumers where they engage you and be satisfied that people are responding to the content you are putting out.

Manage Expectations

Content marketing won’t likely give you immediate results. It takes time to build and maintain an audience. This can be very frustrating for advisors because it may seem like your efforts aren’t being rewarded. Understand that using content to promote yourself will take a while to pay off. But the benefits are there. You never know what will inspire a consumer to call you. With constant, fresh content, you are helping your SEO appearance.

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Tuesday Tips – August 9th, 2016

Alerts

Minnesota Life Chronic Illness

Minnesota Life has announced they will be launching a new chronic illness rider to their suite of life insurance products. The new chronic illness rider will add improved features as well as pricing. Call today for details.

North American Income Choice 7

North American has announced a new product launch August 16th. The Income Choice 7 is designed for clients looking for income and offers both level and increasing income options. As well as a 150% stacking rollup with no rider charge. Call today for details.

Sales Concept

Mortgage Acceleration

Many consumers will make extra payments toward their mortgage in order to save money on interest charges and to pay their mortgage off earlier. Mortgage acceleration is a strategy that can help a consumer pay off their mortgage quicker than making extra payments, pay off the mortgage in the event of death, and preserve a higher mortgage interest deduction for a longer period of time. The strategy is fairly straight forward, instead of making the extra mortgage payment, repurpose those funds into a max funded cash value life insurance policy. A withdrawal can be taken out of the policy tax free in the future to pay off the mortgage balance and in the event the insured dies there is a tax free lump sum that can pay off the mortgage balance. We have a great sales guide for this strategy call today.

Industry News

Lifetime Income Options on Rise

A recent survey by Willis Towers Watson found that retirement plan sponsors are increasingly offering employees lifetime income options. 23% of employers have started offering at least one type of lifetime income solution.

Hot Rates

Equitrust DynaMarc

Equitrust’s DynaMarc FIA is a competitive 10 year product designed for accumulation. The product offers an uncapped 1 year point to point strategy with a 75% participation rate strategy as well as an annual point to point strategy with a cap of 4.25%. In addition to this the product offers a competitive income rider and several other index options. Call today for additional details.

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Marketing Corner – Business Valuation

The Value of Business Valuations

businessv3Financial advisors all know that a good business owner presents many planning opportunities. Not only is there opportunity for the business as an entity, but for the owner’s individual needs, as well as any staff. A financial advisor is not only useful to protect a small business owner’s assets; they can encourage growth through any number of strategies. But, like many client types, business owners often only seek out financial services when there’s a need. This is why building relationships with owners early can lead to a lifetime planning of opportunities.

Business valuations can be a meaningful way to connect with business owners before there’s a need and to be there when a need arises. This is because a business valuation comes into play in many situations, such as:

• Estate Planning
• Succession Planning
• Selling The Business
• Securing Loans
• Asset Protection
• Scaling Up/Down
• Key Man Insurance

Owners often underestimate the importance (and, ahem, value) of a business valuation. When you are dealing with the everyday concerns of running a company, longer goals tend to be sidelined and business valuation is typically seen as something done before the company is sold or transferred.

But business valuations can be helpful to chart progress and inform short-term decisions, which may lead to long-term growth or mitigate poor business choices. Knowing what your business is worth on any given day is important for managing risks and understanding how you track with your vision.

Here are three ideas for targeting businesses and using business valuations:

Target Bellwether Businesses

Every community has those classic businesses that have been around for a while and are beloved by many in the area. This could be a restaurant, coffeeshop, bookstore, manufacturing plant, what-have-you. businessv1Businesses that have been around more than five years have proven their viability and are likely entering into other phases of their life, bringing more complexity and weightier decisions to be made. Many small businesses aren’t equipped to handle rapid success or to maximize their opportunities. They may not even be aware of opportunities. In truth, many small businesses–even popular ones–don’t have long-term planning goals outlined, let alone know what their business is worth.

Connect with the owners of these businesses and offer a free or reduced business valuation. Ask them when the last time they had their business valuated. These businesses could be places you already visit in your day-to-day. Do a little research, meet the owners, and explain what you do.

businessv2Target New Businesses

While new businesses have a high-folding rate, getting in early and proving your skills can lead to a lifetime client. When a new business catches your eye, one you think has viability, or one you believe can provide sustained value to your community, don’t be shy. Introduce yourself and what you can do for them.

Organize a Business Owner Specific Seminar

Rather than go after specific business owners, let them come to you with a business owner specific seminar. Just like you would with any other audience in a seminar setting, address common concerns and important concepts that your target market needs to know. Offer a business valuation at the end of the workshop and start booking appointments.

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Tuesday Tips – August 2nd, 2016

Alerts

Athene Sunsetting TargetHorizon

Athene has announced they will be discontinuing sales of the TargetHorizon FIA series effective September 2, 2016.   Applications must be in house by September 2, 2016 4pm cst.  If there is a transfer or 1035 funds must be received no later than October 28, 2016.  Call today for additional details.

American Equity Rate Decrease

American Equity has announced a rate decrease that will take effect August 5, 2016.  Rates on their MYGA and their Choice series of FIA’s.  Rates will still remain competitive but call for an updated rate sheet.

Sales Opportunity

Business Valuations

Most business owners have an idea in their head of what their business is worth unfortunately that actual valuation number is always different.  This can be a huge issue in the event of the business owners death or in the sale of the business or for any business continuation planning.  Offering a business valuation can be a great non invasive way to offer value to a business owner and also unlock planning opportunities.  LFP has a free service that will complete a valuation for a business.  Call today for details.

Industry News

529 Plans Grow

In a recent report from Morningstar showed that over the last year there has been a 4.3% increase over the previous year in the amount of money held in 529 plans.

Hot Rates

ANICO Simplified Issue Term

American National offers an incredibly competitive simplified issue term plan up to 250k of face amount.  The product writes age 18-64 based off of length and also has a simple E application.  It is also available for group cases.  Call today for additional details.

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