Hello there!
We trust you are enjoying your summer and that you have been able to share time with friends and family!
Summer break? We go back to basics! Step 1. What is insurance?
Insurance is a means of protection from financial loss in which, in exchange for a fee (premium), a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
2. How much insurance? There are rules of thumb, and then there is what the client is willing to pay. Finding the balance is key here.
LIFE INSURANCE: 10-20x income for term life
DISABILITY: Calculated amount to sustain current lifestyle and fund goals
LONG TERM CARE: 2-4 years, very dependent on budget
Here are some handy calculators to use with clients!
3. What to look for?
Term Life:
Work with a broker who shops multiple carriers
A-rated or better carrier
Conversion privileges
Living Benefits (many are free!)
Disability:
Understanding workplace benefits and shortfalls
Partial vs. Total disability
Own Occupation vs. Any Occupation
Cost of Live Adjustments
Long-Term Care:
Benefit amount and length
Premium type (level or increasing)
Reimbursement or Indemnity
Death Benefit?
Annuity:
Account value
Accumulation Value
Income Rider
Surrender period
Fees
4. Setting Expectations
Health We understand it isn't easy to talk about one's health, but this will greatly increase the client experience if you know of the problems ahead of time. Have you been to the hospital in last 5 years? Any prescriptions last 5 years? We also pre-screen this on our intake form. Pricing Pricing can change throughout underwriting, greatly dependent on the clients' health. This is where it's very important to give a range and set the expectations. So many advisors show Preferred Plus yet don't know their clients have 2-3+ prescriptions or other medical history. Get ahead of the curve!
5. Following Through and Practicing what you Preach
Check-in and help your clients throughout the insurance process. Time and time again, the advisors who are most engaged get their client's insurance in place. Shocker. Many advisors don't have adequate insurance themselves! This is why many advisors struggle on giving insurance recommendations. Underinsured on term, and no disability insurance is most common.
And that's a wrap -
5 easy steps to freshen up your insurance process! - Check out our latest podcast episodes:
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WE CAN HELP!
Have an upcoming onboarding an annual meeting with a client? Let us know how we can help!
Catch you at XYPN 2023 Atlanta!
We will be hosting a happy hour again this year. Information will be coming out in the next few weeks!
Our mailing address is: PO BOX 441032 INDIANAPOLIS, IN, 46244 Want to change how you receive these emails? you can update your preferences or unsubscribe from this list.
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BC Brokerage | PO BOX 441032 Indianapolis, IN, 46202