According to a new report by MIB Life Index, underwritten life insurance application activity in the U.S. increased 2.1 percent in June, for all ages combined year-over-year.
The report also revealed that the Index has posted positive numbers in eight of the last nine months, however quarterly numbers show easing growth — up +1.3% Q2 2012/2011, up +4.2% Q1 2012/2011. In the first six months of 2012, the MIB Life Index increased +2.8% year-to-date (YTD), compared to the same six months last year. June’s numbers were also up +2.2% from those of May.
U.S. application activity also increased across all three age groups for the second consecutive month: ages 0-44, up +2.0%; ages 45-59, up +0.7%; and ages 60+, up +4.5%, year-over-year. Mid-year, ages 0-44 are up +1.9% YTD; ages 45-59 are up +2.0% YTD; and ages 60+are up +7.3% YTD versus same period last year, the report found.
Things are looking good out there for the National Agents Alliance team, go get you some!
Times are tough for many Americans, as the job market and the country’s economy hit a major slump. Many Americans are left living paycheck to paycheck and scraping together change to make it from one week to the next. Because of our current economic situation, the thought of purchasing life insurance has often been put on the back burner.
It is widely believed by most consumers that life insurance policies are expensive, when in fact that couldn’t be further from the truth. In fact, a LIMRA report found that consumers inaccurately believe that life insurance costs nearly three times the actual price. For instance, a healthy 30-year-old consumer, who wants a 20-year, $250,000 term life policy can expect to pay only an average annual cost of $150.
As National Agents Alliance team members, you have no doubt had enough exposure those struggling in with the current economic state to know that even with a low average annual premium, many policies may still be too high of a cost for a lot of families. However, there are some options available that you can advise a client that could help them get coverage they can afford:
- Purchase only as much term life insurance that you can afford right now: Term life insurance covers a fixed period of time, like 10, 20, or 30 years, and pays a death benefit if you pass away while the policy is active. The premiums are lower the younger and healthier you are, which is beneficial to those who are on a shoe string budget and are young and healthy. But, the older you get, means the premiums also raise.
- Annual renewable term life: Annual renewable term life guarantees your insurability for a set period of time. However the premium increases each year during the term, based on your age. With level-premium term life, the premium stays the same for the entire term. In the early years of the policy, premiums for annual renewable term life are less expensive than those for a comparable level-term life policy, Nasdaq reports.
- Compare: Don’t be afraid to comparison shop and compare policies and prices to one another.
- Don’t just look for the best price: Sometimes the best price doesn’t means it’s the best policy. You should always shop for quality. What’s the point of having a life insurance policy that doesn’t cover anything, or makes you jump through hoops when trying to file a claim?
For many older Americans, Social Security immediately comes to mind when they think of retirement benefits. That sense of security and monthly income puts them at ease when entering their “Golden Years.” But by explaining annuities and their benefits the same way retirees understand and view Social Security, you could see your National Agents Alliance annuity sales increase dramatically.
The problem is, most Americans don’t understand annuities and believe it’s just another expense. But, when you break it down like Social Security they can better understand how annuities can help them during retirement.
LifeHealthPro.com has broken down how retirees view and what they don’t consider when it comes to Social Security:
How retirees view Social Security:
- They view Social Security as a monthly income plan.
- They can tell you exactly what they will receive in benefits at a given age, because of the certainty it provides.
- They understand that the longer they wait to take income the more income they will receive.
- The income is actually increased by 4 percent to 8percent per year as they wait to start taking it. A boomer gets a whopping 8 percent increase each year they delay the income.
- These benefits are viewed as stable, predictable and backed by the government.
What retirees don’t consider when it comes to Social Security:
- “How much money did I have to put into Social Security to get this monthly income?”
- “What rate of return did I make on my money that I’ve paid into Social Security?”
- “What is my account balance on my Social Security account for lump-sum withdrawal?”
By challenging your clients to consider those questions when talking about annuities and Social Security, it will get them to think about and really consider other retirement planning options. It is very seldom that Social Security can cover your basic needs and live a comfortable lifestyle and as an agent with National Agents Alliance, it is important to make your clients aware of the options they have to supplement it. By talking about how annuities can help to fill that gap, you can continue to assist your clients with leading a more comfortable retirement.
Sixty percent of adults with a high school diploma or less do not have any life insurance coverage, while only 44 percent of college educated adults have forgone life insurance, according to a new study published by Genworth Financial.
The study also found that college educated adults have 2.5 times the amount of life insurance coverage of adults who did not graduate high school or only received a high school diploma.
This is a significant gap that our life insurance agents at National Agents Alliance can target their efforts. Consumers often don’t realize the cost of life insurance is much lower than widely perceived. In fact, the cost of just a few cups of coffee a month is often the same cost of adding adequate life insurance coverage.
For those who are single, it would be wise to purchase a life insurance policy now in order to lock in the low and affordable rates that will only climb as you age.
It is important NAA life insurance agents show their clients that life insurance creates a safety net underneath their family, should the provider pass away. This is an investment that can secure a family’s financial future, in which just one single event could have potentially destroyed if they don’t have coverage.
Regardless if your client is college educated or has a high school diploma, everyone needs adequate life insurance.
People are generally a little leery of sales people, no matter which type of sales people you encounter. While National Agents Alliance has many highly trained and top performing sales people who know how to work with clients, there are things that many sales people do that rub customers the wrong way.
LifeHealthPro.com has revealed the top ways sales people can turn off their prospects:
- Being late for appointments: This sends a huge red flag to your prospect. Not only is it not professional, they begin to lose confidence in you. Make sure when you book appointments that you allow for a small delay because of traffic or an overly talkative customer.
- Talking too much: You’ll never make a sale if you’re talking too much. If you’re talking too much that means you’re not really listening and helping your clients.
- Interrupting your customers: This is not only rude, it’ll turn your client off immediately.
- Going too far into detail about your product or solutions: This is the fastest way to give your client information overload. This is only going to confuse them and put off their buying decision in order to filter through the mass amount of information you gave them.
- Failing to follow through: If you said you were going to send the client information or look into something further for them—then do it! This just sends the signal that you’re unreliable.
- Pitch your offering before determining if a need exists: If you going to pitch a product that your client doesn’t need or isn’t interest in, they will tune you out instantly and your sale will quickly head south. After all, you’re there to help them.
- Not updating your product knowledge: Products change every year and if you’re going to sell them, you need to know their ins and outs.
According to the Public Policy Institute of the American Association of Retired Persons (AARP), nearly 50 percent of workers plan to receive an annuity, either one purchased from a life insurer or through an employer-provided pension plan, while 38 percent expect to receive a life annuity.
The study, “Older Americans’ Ambivalence Toward Annuities,” also found that almost three in four workers (74 percent) are receiving or expect to receive income from an annuity; and six in 10 (63 percent) are receiving income from a life annuity.
Furthermore, three in 10 (30%) workers and four in 10 (41%) retires with a choice of options in income distribution intend to or already have chosen an annuity, the survey found.
For 82.3 percent of respondents, annuities are “very” or “somewhat” convincing options, due to its ability to “help you manager your budget because you get a predictable amount of money each month.”
In addition, 81.6 percent of respondents believe that annuities offer “peace of mind because payments will continue as long as you live, while 80 percent said annuities “ensure that your month income will not fall, even if there is a large drop in the market.” Another 76.8 percent said annuities “can help you remain independent because the money will never run out” and 75.5 percent reported that it offers “certainty in respect to the rate of return.”
Annuities are proving to be a hot retirement option amongst workers and retirees. National Agents Alliance urges our insurance agents to ask their clients if annuities have ever been an option that they have considered. Because annuities are tax deferred, meaning that they don’t have to pay taxes money they accumulate until it is withdrawn in the future, it can be a huge benefit for our clients. Annuities also avoid the costs and delays of probate, which gives your loved ones access to the funds quickly.
If you are interested in a free quote or more information about purchasing an annuity, please visit http://www.naalife.com.
It doesn’t take long in the business life of an agent with National Agents Alliance to find out who’s tough enough for the long run. The novice agent often gives in quickly, misinterpreting rejection as a personal affront, when the prospective client is really saying “not now” or “I need more information.” A more experienced agent is able to maintain a posture of confidence and competence by being prepared for any and all objections that prospects throw out.
This posture is what is responsible for the agent to turn “no’s” into “yes’s” and convert skeptics into clients.
Because of the professional training received through Rotation meetings, NAA University, Boot Camps and Andy Albright’s weekly TV show, agents develop the skills to handle anything thrown their way. Through this training and experience, agents learn to “think on their feet,” to answer objections with ease.
With a little practice and experience, agents are able to anticipate almost any question the prospect may ask, confidently rebutting the objection and showing the client technical competence. People love to do business with people they like and those who come across as competent in their delivery, and this positive posture leads the client one step closer to buying.
This anticipation is learned at the National Agents Alliance trainings listed above, and top producers will teach a new agent exactly what to say to every possible objection imaginable. Through repetition and role-playing, every agent is prepared for every question, and will be able to perform in the same manner as the best-of-the-best at NAA. The more practice, the more confidence. The more confidence, the more success.
Agents have what clients need. There can be no fear because it’s the agent’s job to protect the client’s family. This business is a “contact sport” and not for the faint-at-heart. But if you learn and practice, the fear disappears. It’s a great feeling to be prepared and to effectively listen through an objection or question that you have anticipated ahead of time and have your prospect respond positively to the way you honor their concern and offer a solution to their problem. When you are prepared everyone wins.