A New Profit Center for Property and Casualty Agencies: Life Insurance

September is Life Insurance Awareness Month and time for you to think about how life insurance can be rewarding for you and your clients. Some of you might be thinking about expanding your product offerings to include life insurance. This month is an excellent time for you to learn the details about how you might be able to provide life insurance to your clients.

The current volatility in the markets has brought new attention to bear on life insurance because it is stable and secure. For example, Whole Life Insurance is a proven, stable product that offers guarantees other financial products can’t offer. A Whole Life Insurance product accumulates cash value and earns dividends, and has the flexibility to borrow against the policy’s guaranteed cash value. A chief reason why you and many of your clients would be interested in an offering of life insurance is because, by comparison, so many other investments right now are not as secure or stable.

Let’s look at some ways this offering will not only benefit your clients, but you and your agency as well.

1. Helping your clients. According to LIMRA, a research association for the insurance and financial services industry, about 49% of Americans aren’t contributing to any retirement plan. Among these statistics, an assertion has been made that many who are insured are actually under-insured and in the event of a tragedy, individuals, families and businesses would struggle and stand to lose their entire financial holdings. Life insurance is not a substitute for a comprehensive financial plan, but it is infinitely more secure than having little protection or none. Whether your clients are individuals or businesses, both stand to realize tremendous benefit by having the right life insurance plan in place. Life insurance is unique among other types of insurance in that it is one of the few guaranteed securities that deliver at exactly the moment when it is needed the most. Don’t you want to be in a position of helping your clients meet all of their insurance needs so that they are fully protected?

2. Insulating your clients from going elsewhere. You already have a relationship with your clients. By offering life insurance, you help ensure that this revenue stream will go to your agency and not to another competing agency. If your clients go to another agency for life insurance, they could very well end up staying with that other agency to meet all of their other insurance and financial planning needs. Why take a chance on losing your most valuable asset—your customers? You are already aware of other types of insurance that they have in place and can respond accurately to what they need in the way of life insurance. As their insurance agent, you are in the perfect position to help them.

3. Profitability for your Agency. Adding life insurance to your sales tool kit is a proven method of generating new revenue through your existing client base. By offering a fuller array of insurance products, your clients will not see you as only providing a limited offering. Because your clients already have a relationship with you, they will count on you to tell them which life insurance product is best for them. You can offer your clients a holistic approach to their insurance needs and still make extra revenue in the process.

Give your agency an edge that will differentiate you from your competitors! With the addition of life insurance, you will increase profitability, enhance the image of your business, ensure client retention, and genuinely give your clients the products they need to fully protect their future. Even if you feel that you are not good at assessing different life insurance products, or you don’t have the expertise on these new products to make the conversation, always remember I am here to guide you, every step of the way, as you develop this new part of your business. Give me a call at 631-262-9254 to discuss how I can be of help to you and your agency.

Your questions and feedback is very important to me. Please email me at michael@swanwealth.com

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