Should we add life and health insurance to our agency?

[dev1nsan]

Anybody with experience, would you recommend adding life and health insurance to an agency that sells mainly non-standard auto. How hard would it be to get appointed with those companies.

[wlunday]

In an agency that focuses on sub-standard auto it might be tough. Although that's my perception, not knowing all the facts. However, I bet you have lots of young insureds that could find an extra few bucks to buy term coverage for their family's protection. Maybe you have some wealthier clients that just have a poor driving record... Anyay, the idea is to "round-out" accounts. Offer them more and they won't need to look elsewhere.

Also, if you have a high Blue Collar clientele, an appointment with a company like Assurity Life, offering their workplace products may be in order.

So, the short answer is... If you have a client with a life, disability or annuity need... someone is going to fill the need for them.

Better it was you.

Swymmer

[d's insurance store]

If you're just going to train one or two of your existing producing staff to enlarge the product portfolio, then have at it. Appointments are very easy to get for life and not a whole lot harder for health.

If it means that you're going to have to add people or space, then perhaps not.

On the life side, there are a handful of wholesale shops that make it incredably easy to sell in return for about 20 points on commission. Just have a live prospect, enter the data into the computer and the wholesaler takes over from there. You collect signatures and money upon issue and then the checks arrive for commission.

Health will require some product knowledge, but I know a lot of 'not so bright' agents making a good living selling health.

[scott]

Why wouldn't you take every opportunity to provide more value to current clients or to attract new clients?

Run, don't walk, at this one.

[MLL]

Our agency mainly sells home/auto P&C , I am also the L&H agent. We live in a very poor environment and my prospects are not the healthiest, thus it's hard to sell life in my area. I thought it would be a good seller, but people only inquire half heartedly and when they get my proposal they remember why they didn't buy life insurance before hand. No one is ready to make the commitment to another monthly payment they can not afford.

So I would suggest maybe looking about your community to see if you have a good target audience first. If your selling non-standard auto your clients are probably not too concerned about their family's well being when they are gone from the earth!!

I am glad I have my license for the clients that had policies through my predeccors. I have had my L&H license for almost 2 years now and have not sold one life policy!

[Sundance]

I pesonally say go for the life end of it and run from the health
Actually i fyou do health, just choose one company to represent.

The problem with health insurance is that you "babysit" everyone and sadly, you will quote a lot just for people to be in shock for how much it costs. They also want to have drug cards and all the bells and whistles etc. People still do not have a clue what it runs.

I do both in my agency but when it comes to health, I only use 1 company just to keep it simple as well as to know the product. If you have too many options you can spend way too much time trying to keep up to date on each and then if you present your clients with more than 1 or 2 quotes it is overwhelming to them.

And I think it was D above, I'd love to know who that broker is

[wlunday]

Sundance, you make a good point, assuming you are talking about Medical Insurance.

To me, a health policy also includes disability income, long-term care insurance, and to others it may also include critical illness policies.

If devinsan wants to keep it simple, he should add a great company portfolio like Ohio National's... good term, permanent and individual DI... Plus a contract with AFLAC or similar carrier.

If he can get tied up with an outside AFLAC producer, maybe offer a desk for him/her it might offer an opportunity to cross-sell P/C stuff to their existing clients. Everybody wins!

Good Luck, devinsan... as NIKE says... Just do it!

Swymmer

[Sundance]

wlunday

Yes, you are exactly right, I am talking about medical only, your point about LTC and DI is well taken

[dev1nsan]

hey thanks for the advice, I'll give the life insurance a try since it seems to be pretty easy to get appointed and it really won't hurt if I can't sell any.
thanks again

[independent guy]

[quote="scott"]Why wouldn't you take every opportunity to provide more value to current clients or to attract new clients?

Run, don't walk, at this one.

[scott]

If I can use this thread to suggest a paradigm shift...

Many on this forum speak often of selling / closing / prospecting. It is a mindset that is antithetical to the desires of your clients.

Nobody wants to be sold, closed, or prospected. People want solutions to their problems.

I suggest that agents should not be selling anything. Value is the desired outcome. You are trying to help someone with meeting the objectives of economic security using risk mitigation. Insurance is a tool used to achieve the objective.

Agents should see themselves as partners with their clients in reaching mutually agreed upon objectives.

Their interests become your interests.

The mindset of sales puts you in the mode of conquering your opponent. You are pushing for the sale - your prospect is standing in your way.

The mindset of partnership puts the self interest of your client together with your abilities, moving to a common objective.

Risk mitigation includes other tools besides auto insurance. Offering narrow solutions to a client's problems shortchanges you.

Trust is the coin of your realm. Once you have established trust why not be able to provide a broad range of services - insurance products and other risk mitigation tools.

More value to the client always means more income to you.

Your self interest is served by serving your client's self interest.

[Porter]

Scott,

I was day dreaming while ready your post until I got to the last two sentences. Now it all makes perfect sense.

Thanks,

Porter

[Sundance]

Scott, a little lengthly of a comment but points well made. However, we (as agents, you are a consultant) still have to "sell" to the client/prospect as so many do not have a clue what they "need" or why they "need" it... hence the selling capabilities. One must show the need, one must show them why and how to protect all they have

[d's insurance store]

Indeed Scott, you've outlined the formula for success, but perhaps not in every insurance agency.

All of your words ring true perhaps in the environment where you are finding your clients. I envision an environment where there are large commercial accounts, premiums reach well into five or six figures, the sales/consultant cycle spreads over months and true risk analysis takes place in a measured, civilized way, AND the attendant commissions make it worthwhile as a marketing direction.

But many of us, especially in the personal lines, small commercial areas, find that the nature of the beast is such that on a transactional basis and associated premiums/commissions, it would be a dream to think that we could successfully run an agency solely on the basis of real & perceived value delivered to all insureds.

Certainly, we can practice the rule of prospering by putting the client/prospects needs first, but I've suffered the folly of trying to go 'over the top' with service and advice to an audience that by and large doesn't give a fig and deals in a bottom line world of 'can you get it any cheaper'.

I've added value for more than a couple of decades and put the clients interests ahead of my own, and a FEW clients appreciate it. But overall, I've found that in the arena I play (and prosper) in, the major keys to retention and growth are as simple as returning messages and responding quickly and offering reasonably priced products to that dwindling share of the market that appreciates those simple attributes. But it still is no guarantee of success, and over the years and with increasing frequency, more and more of the insurance buying public puts the monthly payment in a higher position than full valued service.

I'm not pooh-poohing your mantra...I'm just making and educated guess that the majority of your clients and associated income do not come from a smaller policy premium/commission environment that are more receptive to your total package.

[Sundance]

Certainly, we can practice the rule of prospering by putting the client/prospects needs first, but I've suffered the folly of trying to go 'over the top' with service and advice to an audience that by and large doesn't give a fig and deals in a bottom line world of 'can you get it any cheaper'.

Couldn't give a fig - love it (and I'm in total agreement)