Sales Blog for National Agents Alliance

Married couples and families are the first demographic to come to mind when we think of people who would buy life insurance. But, according to a Pew Research study, only 51 percent of American adults are married.

While that statistic doesn’t mention whether those singles have any dependents, it’s pretty safe to say that is a huge pool of customers that shouldn’t be ignored. Single individuals are people who still need National Agents Alliance’s help in understanding the importance of life insurance.

While some people are better off financially than others, and have the cash to cover final expenses and cover any debt that they may have; chances are that there are more people who don’t have that luxury.

In order to find out how you can help a single individual LifeHealthPro.com has revealed some questions that you can ask to in order to help provide life insurance protection:

• Do you provide financial support for aging parents or siblings?
• Do you have substantial debt you wouldn’t want to pass on to surviving family members if you were to die prematurely?
• Did family members pay for your education?

If they answer yes to any of these questions, then life insurance is something they definitely should consider.  In the event of an untimely death, this will provide peace of mind knowing that their children’s tuition will still get paid, their elderly parents will still receive the nursing care that they require and their family will not be left with a pile of debt.

The economic climate has also made “permanent life insurance an attractive asset class for the purpose of building a secure long-term rate of return for safe money assets. Cash value in traditional life insurance may provide a 3 percent to 5 percent long-term rate of return over a 20-year period. This can provide singles with money for opportunities, emergencies and retirement,” LifeHealthPro.com reports.

Furthermore, it’s important to express that the cost of purchasing life insurance is lower at young ages, which also allows them to protect their insurability for the future.

These are all valid reasons you need to express to your clients as to why life insurance is something they should seriously consider and how National Agents Alliance can help them.  Now, as Andy Albright would say, “Hammer Down!”

Here is a scenario of two young agents with National Agents Alliance planning to save for the future.  Both agents are 24 years old and, since they are in the financial services industry, they decide to start thinking long-term about their future just like they recommend to their clients.

One of the strategies they discuss is putting some extra money away in an IRA on top of their other investments.

One of the young agents procrastinated, like so many of our clientele do, while the other began a savings plan right away.

The “smart” agent put $2,000 in an IRA starting at age 24 and again each year through age 30.  He invested a total of $14,000 but at age 30 decided to stop adding to the IRA.  When he reached age 65 his IRA totaled $1,074,968.  Because he started early, and his money had “time” on its side, it compounded year after year to over a million dollars.

On the other hand, our procrastinator found excuses for not saving, excuses similar to those our clients come up with.

Finally, at age 30, the second agent decided to go ahead with the savings plan and put $2,000 in the IRA every year, and while he managed to accumulate over a million dollars by age 65, he had to put in his $2,000 every year all the way through age 62.  That’s thirty-three years compared to seven years!

Do you think it’s important to get your clients to start early in planning their financial future?  It’s made even more clear when you see the numbers! Agents must “practice what they preach” and follow Andy Albright’s tenets from The 8 Steps to Success…number 1:  Personal Use.  Show clients you believe in planning for your financial future and you’ll have an easier time getting them to do the same.

The cost of waiting?    $54,000!!!

On May 1^st, the LIFE Foundation kicked off Disability Insurance Awareness Month, which encourages people to start thinking about what may happen if they were injured and left unable to work and keep a roof over their family’s heads.

While many people believe that a big house, nice cars and clothes are their biggest assets, it’s actually their ability to work and earn a living—allowing them to enjoy such luxuries. This is where life insurance and mortgage disability protection insurance comes in.

In fact, statistics show that in the U.S., a disabling accident occurs, on average, once every second!

Many believe that disability insurance isn’t needed because benefits are available through Social Security or workers’ compensation. However, the LIFE Foundation revealed that “45 percent of those who initially apply for disability benefits through Social Security are initially denied, and those who are approved get an average benefit of just $1,063 monthly—hardly enough to replace the average worker’s income. Workers’ Compensation covers only work-related disabilities, but according to the National Safety Council, 73 percent of disabling accidents and illnesses aren’t work-related.  The U.S. Department of Labor also reports that over 70 percent of employers do not offer long-term disability coverage.”

The U.S. Department of Housing and Urban Development reported that nearly half of all foreclosures are caused by disability. On top of that, according to the Social Security Administration, one in five people suffer long-term disability before the age of 65.

National Agents Alliance has multiple options in protection to ensure that families are protected in the event of an unfortunate accident that leaves the bread winner unable to continue to support their family. Here at NAA we can offer mortgage disability insurance in conjunction with life insurance, so that individuals are protected against death and disability, or as a stand-alone disability policy.

It is a comforting feeling to know that your family is protected no matter what life may throw your way. Be sure that your clients know of these options and facts!

At National Agents Alliance (NAA) we encourage our insurance agents to promote repeat business by offering a positive experience with their clients the first time.

One sure-fire way to ensure that NAA insurance agents will have repeat customers, and referrals from their customer’s friends and family is to offer an experience they couldn’t get anywhere else.

This “experience” is everything for customer; it’s how they decide whether or not they will make a purchase from you. The experience you offer your customer can range from the quality of your product, to the level of customer service they receive. Since National Agents Alliance only offers the best products on the market, it’s important that our agents provide an equal or better experience for our customers.

Connecting, understanding the customers problems and then solving them with your product is key to success and repeat customers.

In Andy Albright’s 8 Steps to Success, step three is all about listening. Knowing and mastering the listening technique taught in Albright’s book is key into creating repeat customers and fostering an ideal experience.

In order to accurately assess who your repeat customers are, it’s advised for NAA insurance agents to keep a log of customers to see who is returning for repeat business and who isn’t.  For those customers who have not returned to conduct more business, or have not opted to make a purchase at the time, it is always good to make a phone call to see if your services could be of use.

What was that?

Poor communication can ruin even the most talented staff or team. It can cause mistakes to happen and it can mean missing opportunities. When you have to spend time get clarification, productivity suffers. Keep people in the know. If you know a client checks email often but doesn’t take calls, then email them. Doing little things like that will help set your team up for success. Give clients what they want and deserve. Be clear about directions and expectations.

Stay organized with National Agents Alliance

If you are not organized your productivity will suffer with National Agents Alliance. Accidents can happen, but not being able to find documents, information, etc. should not be the cause for setbacks. If a meeting is slowed because of this, energy is sucked almost immediately and the excitement level dwindles. If you don’t have what you need, don’t just rush to ask others for help. Try to find it on your own first. Formulate a system that will help you know where to go next if you need help. If you have an organizational whiz then ask that person to help you be more like them in that regard.

Don’t pass the buck on somebody else

It’s understood that you have a lot to do. You want to complete tasks and try to clear your desk. Don’t rush to move a project from your desk to another if you haven’t done all you should have first. Rushing means you might have typos, mistakes, etc. and that’s not fair to the person who gets the task next. Focus and take the time to do your best work. Pay attention to details, double-check your work and make sure you followed the guidelines with National Agents Alliance.

Deadline dodgers beware!

Missing deadlines throws everything off. It creates new obstacles for not only you but the whole team. Not meeting a goal on time should be the exception not the rule. Missing deadlines badly should be a sign that people aren’t giving their best or they don’t care about what they are doing. Maybe they are overloaded, but this still means the team’s productivity suffers. Set reasonable goals, have clear deadlines and hold all people accountable. Don’t set people up for failure.

Look forward, but remember NOW too!

Looking ahead is OK, but you still have to remember what you are doing that minute, hour, day, and week too. Tunnel vision can be good and bad. If employees get discouraged because you are asking about only unfinished goals and projects, then morale will be lower. Try to remember something positive and verbally let your team know they did a good job on that. Then, you can shift to something that needs to be done so you can talk positively about how well the team did that task too. You don’t have to high five a person every day, but it’s nice to acknowledge those that did something well.

Don’t point fingers

Why do people pass blame toward others when they were part of the problem too? Pointing fingers is one of the worst things a person can do. Claim your share of the blame and work to fix the problem. Keep things constructive or people will start to shut down on you. Be humble, but be confident too. Be open to suggestions and criticism. No person wants to be at fault, but owning your mistakes will make you better in the long run. Learn from previous experiences and help make the team at National Agents Alliance the best it can be.

Today is a perfect day, as we celebrate the birthday of Dr. Martin Luther King, to think about the dreams we have for ourselves, our families and our businesses.  Dr. King was a true leader, with honor and courage, who believed that anyone, no matter their heritage, their political beliefs, or their skin color, has the right to be free from oppression and that everyone should have the same opportunity for success.

He believed in the Constitution of the United States and in the words of the Preamble that begin the document:

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.

Dr. King dreamed big dreams; dreams so big that they changed the course of history in the U.S.; dreams so big they put his safety at risk every day; dreams so big they finally cost him his life.

But the dreams of MLK were so powerful they changed the way all businesses operate many decades after his death.  Because of his foresight and courage, today, as you go about building your business, you don’t give a thought about the skin color of a potential client.  You work to protect every family who requests our products; you welcome on to your team men and women from all backgrounds, faiths, and skin colors.

The question you should ask yourself today is:  are your dreams big enough?  Are you really stretching yourself to accomplish your goals and dreams with National Agents Alliance?  Are you comfortable with the status quo, or could you really dream for some outrageous outcomes?  Do you have the courage to think way “outside the box” or do you worry about what other people will think?

Take some time today to reflect on and remember Dr. King’s “I Have A Dream” speech.  Use his memory today as inspiration to strive for more, to knock down any barriers in your path, to eliminate all excuses, and reach for the stars!  Today there is unlimited opportunity for anyone who is willing to go for it with National Agents Alliance.  So dream.  Dream big.  Just do it!

Every agent has heard those words before; any agent that’s been in the business very long has heard it many, many times.

Why does that objection come up? What can you do about?

Experienced agents will tell you they practice long and hard to prevent it rather than having to spend time combating it.  And, how, you ask, do they do that?

Before you learn what the seasoned agent does with National Agents Alliance, let’s explore the reason the objection surfaces, usually just when you think you’ve done a great job explaining the features and benefits.  You have covered all the bases, explained all the possible coverages and riders, and you even have the application nearly completed.  Just when you ask for the sale, the “I have to think about it” rears its ugly head.

The reasons?  Far and away the number one reason is they can’t afford it.  Number two, there’s something they don’t understand.  It doesn’t mean you haven’t done a good job explaining the plan that will cover their family perfectly.  It doesn’t mean you did something wrong.  It’s an objection that every agent faces and eventually learns to anticipate.

Top producers with National Agents Alliance go in knowing that there is a good probability they’ll hear those dreaded words, so before they even get into their presentation they’ll say something like this:

“Before I show you the options and the prices, I want to ask you for a couple favors:

• If there is anything that you don’t understand about the proposal I have prepared, please don’t hesitate to ask me questions.
• The other favor is, as we go through the options and prices, if you like the plan but don’t feel they fit your budget, please tell me.  I have prepared a number of options.

I learned early on that when someone likes the plan, but doesn’t think he can afford it or he doesn’t really understand it, instead of telling me that, he just says, ‘Looks good but we need to think about it.’ I finally figured out that ‘think about it’ means he doesn’t think he can afford it or he doesn’t understand something.  So by not telling me, I can’t help him.  So please promise me you’ll tell me.” (Nod while you’re saying this)

It’s very liberating to say this and it usually heads off this common objection.  If the client does tell you they can’t afford it or they don’t understand, you can handle that, and we’ll discuss that in another session.

There are a lot of different aspects to this trade that require flexibility.  Scheduling appointments, selecting proper terms and additions for policies, locating and attending seminars, and finding quality personal time all require adaptability.  Since the client is also under similar circumstances, and will have the added complexity of presenting a different set of wants, needs, and life conditions for each household you are assisting, your approach will require that very same flexible nature.

While it is helpful and important to have a routine approach to your sales, you should consider this only a baseline approach and be prepared to have to deviate.  With the potential for high levels of change from one appointment to the next, you will need to be able to think on your feet.  Being flexible in your approach is a skill that will allow you to handle all of these different situations with ease, while still being able to showcase the benefits and perks of the policy items you are developing.  By far, experience will be one of the best providers of this skill.  Unfortunately that isn’t something that we can start with and only comes with time and effort.

While you work on fostering experience, there are some things that can be done to begin developing this skill.  Certainly knowledge is a powerful ally.  Knowing your products and how you can tailor them is a tremendous asset that will give you the foundations for your agility.  National Agents Alliance provides you with many tools to increase your knowledge of these items, including carrier specific information that you can get by logging into your account at NAALeads.  In the same vein, there are videos and conference calls to reference at NAAtv that provide training material in addition to the weekly Rewind and Did You Know? segments.  Remember to ask questions of your peers, and consider attending some different Hotspots where a lot of opportunities for that sort of interaction are available.  Some events even have representatives from our carriers attending so that you can get even more information.

Roleplaying can earn you some experience without the pressure of having to close a deal or work with people you don’t know.  It may feel a little silly, but having someone assist you by pretending to be a client can be extraordinarily helpful.  Running multiple situations and going through them multiple times will help you get a feel for how to handle things appropriately, while allowing the chance to laugh and learn from any “mistake” you might make before it has the potential to have negative repercussions.  Have a little fun with it, and attempt to take on a ridiculous scenario too.  Enjoying the “work” will make it easier to retain what you are learning!  Be sure to practice multiple times, and not all at once, but over a space of time.  Numerous rehearsals will give you the benefit of repetition and begin to make things second nature, while spacing out your practice sessions will keep you from getting overloaded.

Remember that as you perform your trade more and more, your flexibility skills will develop even further and help you perform at a high level no matter what curves are thrown your way.  In the meantime, consider boosting your knowledge and practicing with a peer to help get the ball rolling.  Don’t forget about NAAUniversity either, it is a great spot to lay the groundwork and gain access to important information to help you on your journey.

Barron’s Insurance Dictionary defines persistency as the “Percentage of life insurance or other insurance coverage remaining in force; percentage of policies which may have not lapsed. The larger the percentage, the wider the persistency.” It is a part of sales that is often overlooked. To be profitable in insurance, it isn’t enough just to sell your product to one person; you should also try to retain your customers.

Now, think about persistency for a moment. What’s the very first thing that pops into your head? Most likely your answer would not be marriage.  I mean, what would persistency have to do with matrimony? They seem further in relation than your cousin and a kumquat.

But the relationship between a client and an agent is just that, a relationship. It takes courtship, compromise, and commitment for any contract to be signed.  Nevertheless, walking down the aisle and saying your “I dos” isn’t the end of the marriage. Marriage is really a commitment and, in several ways, same goes with a client. If the client doesn’t feel you care, there may be a rift … or maybe “divorce.” In the world of insurance sales, that means cancelled contracts, which may result in the dreaded charge back.

In order to have great persistency, then, you should treat your agent-client relationships with pride. Your customers trust you, they’ve created a resolve for persistency with you, and they anticipate being treated as such. Here are a few methods to keep them happy after the contract is signed.

Keep in contact. Communication is crucial to a good relationship. Keep that bond powerful by reaching out to your customers. Express care for them outside of the context of the company. A simple birthday card or phone call can do wonders. If you’re trying to find an automated answer, NAA’s KIT letters can go further toward showing your clients just how much you care.

Earn their loyalty. When you love someone, it’s usually not just for one reason. It would be their sense of humor, their personality, or their smile. In terms of your clients, the relationship also needs to be multi-tiered. Having multiple contracts with them is a wonderful approach to retain persistency. The more policies they through you, the more likely they are to retain their policies and ask you for advice about future investments. When you help a customer once, they are just a customer. Help them again and they become a valued client. Help them a third time and you have a client for life.

What do you do in the event that the passion of this relationship has cooled and you’ve recently been “divorced?” It is possible to still salvage your relationship by contacting the client and asking why they cancelled. A small reminder will help them remember why they signed up in the first place, or perhaps it will reveal different problems you could help them with. Rekindle that spark of passion and you might be able to save the relationship.

Remember; persistency is a lot like a marriage. You’ve already devoted to one another. Through any time to show your customers how much you care, and seek out opportunities to “romance” them further, you’ll have a lengthy, fruitful relationship together.

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In an earlier post, we touched on the power of social media and some ways to leverage it.  These sites aren’t just a tool to use, though.  They are an actual movement that has caused a change in mindset for how businesses should interact with their customers.

Not so long ago, customer relationship management was a static set of protocols and processes.  Everything was well-defined, only certain departments would interact with clientele and transactions were kept simple.  The advent of social media has dramatically changed this landscape.  Presences on various social sites are available 24/7, allowing more customers to engage a business, and affording all employees the same type of access.  Rather than being straightforward and process-centric, CRM has had to evolve to handle the more dynamic and complex relationships that have resulted from the social media phenomena.

In many aspects, being a National Agents Alliance agent has you well prepared and ahead of the game for this.  Meeting with clients has always been a dynamic and complex process and your experience there will translate directly into how you treat CRM in the social media world.  If you are working on developing a presence, keep in mind your knowledge of working directly with a client and apply how you handle yourself there to your online presence.  Remember that all of your friends or followers will be seeing your posts and responses, so be sure to alter your interactions to take that into consideration.

Here are just a few areas to consider in harnessing the power of the new, social CRM:

Accessibility and responsiveness are paramount.  As a sales professional, you already know the value of striking while the iron is hot, and in the ever available online world, the expectation of your users is for prompt replies to both the good and bad.  Keep in mind that the overall goal is create positive experiences, so don’t get offended if a negative should appear, simply approach it with the end goal of a positive resolution in mind.

Demonstrate your interest in the client.  Keep them informed about your business and its status, but also engage them in conversation and interact with their posts.  In many ways, the marketing facet of social CRM is handled through the communal aspects of your social media platform rather than through typical campaigning and advertising activities.

Often, to get followers, you will need to follow them also.  Something to consider is subscribing to the blogs or other social media endeavors of your friends and to comment on, ‘like’, or share those items appropriately.  This not only exhibits your interest, but actually increases your visibility to others, making this an excellent method in your approach to social CRM.

As a professional with National Agents Alliance, the social aspects of your work have you well prepared to tackle the endeavor of this changed face of customer relationship management.  Social media on its own will give you the power of presence.  Combining that with this new and popular approach to CRM can dramatically increase your reach and reputation, which can only increase your opportunities.  Leverage this technology to your advantage!