Do I need term life insurance or whole life insurance?

Term insurance can be a cost-effective way of meeting a single need for coverage. If all you need a policy for is to pay off the mortgage, then term should… Read More

Is an indexed universal life (IUL) policy a good investment?

I appreciate the complexity of this product, and sympathize with all the various confusing messages you’re getting. I take this approach for evaluating the product: 1. The bottom line is… Read More

Should I purchase long-term care insurance, or invest the money to pay for my long-term care?

Here is something for you to think about: I have had four elders in my family die in the last five years – my father, mother, aunt, and uncle.  Each… Read More

Is life insurance a good investment for leaving money to your child?

I think it’s a great idea to leave money to your child with life insurance. Think about it. If God forbid you die tomorrow, you’ll have paid one premium, and… Read More

This week’s feature: Filling the “insurance gap.”

This is the first of a series of articles describing the mission and methods of the Global Insurance Portal.

For those of us in the financial services industry, the ever-present business challenge is simply this: how do we help our clients have it all? They need multiple products; they trust us; and they really don’t have the time or inclination to go shopping for a new broker or advisor every time they need to make a new purchase.

Wouldn’t it be nice if they could come to us for everything? Speaking as an insurance broker, I would love to be able to sell my clients every policy they needed. Once you work out the licensing and other compensation requirements, it would be great to develop additional revenue streams. Even if you don’t get paid, simply referring your clients to other professionals adds value to the relationship.

Every client needs a full insurance portfolio.

Most importantly, it enables the client to build the full insurance portfolio they need. Each one of us must have protection from a huge array of hazards: death, disability, accident, sickness, lawsuit, theft, natural disaster, cyber crime… the list goes on and on. And when you realize that many of us have multiple spheres of concern – personal, business, corporate, estate, charitable – you see just how many policies must be purchased.

Tragically, my experience has been that the vast majority of insurance consumers end up under-insured. They don’t know where to go for many of the policies they need. In some cases, they don’t even know that policies exist that they could use. Sometimes, they will buy coverage from a firm that doesn’t specialize in the product, and end up overpaying or buying inadequate benefits. You could read any number of consumer analyses, and come to the same conclusion.

Most consumers do not have a full portfolio.

The net result is that many families, businesses, corporations, and estates remain exposed to huge unsecured liabilities. When disaster strikes, the show grinds to a halt. Legal and financial problems mount. The morale of survivors is sorely tested – and this is true whether the survivors are family members, or corporate stockholders.

My lesson learned from the situation is this: the number one responsibility of everyone in the insurance distribution chain is to fill the insurance gap. This includes re-insurers, through general agencies, to brokers and advisors – along with every consulting firm and special markets product designer in between.

So, the primary mission of the Global Insurance Portal is to fill the “insurance gap.”  In subsequent articles, we will discuss principles that guide our effort. These include “It takes a Network”, and “Ensemble team service.”


 

Our friend and colleague George Bailey runs a radio show that is committed to financial education for children. This is a truly noble mission because nothing is more important than giving the next generation the proper values and mindset for financial success.

George was kind enough to interview me recently. We talked about my own childhood and career, and the message I would like to send to upcoming consumers of financial products. He conducted a very professional interview, and we both enjoyed it immensely. I think you will too. Here’s the link:

https://www.facebook.com/choosethenickel/videos/vb.418479555280491/490303748098071/?type=2&theater

 

Should I purchase a permanent life insurance policy to supplement my retirement plans?

The bottom line here is after-tax income. I am sure you know that life insurance can provide tax-deferred cash accumulation, and tax-free distributions, if the policy is properly managed. But… Read More

Should I get indexed universal life insurance (IUL)?

Don’t put the cart before the horse. No financial advisor should be recommending a product until you and he have become clear on your needs, goals, and comfort level with… Read More

The five contrarian standards for selling life insurance

We contrarians get a lot of flack for rocking the boat. Many people are very uncomfortable with others who challenge the status quo. But you know what? Sometimes the status quo is not good enough. It takes a dedicated contrarian to raise the bar to where it should be.

I have been a contrarian life insurance salesman my entire career. Here are the five ways I have designed my contrarian sales model. I’ll elaborate further in this week’s seminar.

The five contrarian standards for selling life insurance:

  1. I am first and foremost a business person, ahead of a broker or financial advisor. If I can’t run my practice at a profit, I can’t run it at all.
  2. Contrary to popular myth, life insurance is bought, not sold – not the other way around.  If at the end of the day a prospect does not buy from me, it is not my family or business who will be unprotected.
  3. The value of life insurance is determined by underwriting – not riders, features, guarantees, or tax advantages. All these features are meaningless if the cost of the insurance is not competitive.
  4. Prequalification is the name of the game. If you can’t quote your client a reliable rate, you shouldn’t quote at all.

I specialize in one product. Excellence requires being a master of one trade, not a jack of all.


This week’s seminar will take place on Thursday, May 24th, 4:00 p.m. to 4:30 p.m. EST.

A sales seminar with Steve Kobrin, LUTCF, principal and founder of The Kobrin Agency.

The five contrarian standards for selling life insurance.  Steve will elaborate on this Monday Memo topic on how he has designed his contrarian sales model. Questions and your own experiences are always welcome.

Dial-in Number:       515-739-1245                  Access Code:  240970

Instructions:
At the scheduled date and time of the meeting, dial in to the conference line. When prompted, enter the access code followed by hash (#).



Come join our LinkedIn group!

“How to make your strategic insurance partnership hum with activity!”

This group is for brokers and advisers who have formed a strategic partnership with the Office of Steven H Kobrin, LUTCF/The Hardersen Group/Crump. It is also for financial professionals who want to learn more and potentially join us.

Strategic partnerships among sales people, general agents, and wholesalers are the wave of the future in our industry. Together we can bring the best products and services to more insurance consumers than ever before. This group will provide you with ideas and insights on how to do that. 

Simply click this link to join the group!   https://www.linkedin.com/groups/8635490
If you are a Linkedin member, just click the link and login.  If you are not a Linkedin member, you can join after clicking the link. 

Why You Need an Impaired Risk Life Insurance Broker on Your Financial Services Team

This paper explains why the life insurance sales process needs an impaired risk specialist.

3 types of life insurance sales.

I have been selling life insurance for over 25 years. In that time, I have seen life insurance sales fall into one of three basic categories:

 

  1. Jumbo estate and business sales;
  2. Low-cost term sales (includes permanent products with small face amounts, for people who qualify for preferred or standard underwriting;)
  3. Impaired Risk (candidates who present a higher risk due to current health; medical history; lifestyle; avocation; travel; citizenship; or financial/legal/motor vehicle record.)

 

Why consumers want to work with an impaired risk specialist.

When I first launched my brokerage, we published a website advertising our services as a specialist in high-risk cases. Almost immediately we were flooded with email requests for help from people all over the country! It was remarkable. Clearly, there is a demand among consumers for such a specialist. I soon deduced several reasons why:

First of all, many, many people are having a bad experience applying for life insurance. They are getting declined or rated unexpectedly, and realize that their regular insurance guy or gal doesn’t have the skills for handling higher-risk cases.

Secondly, they are not comfortable disclosing personal information to someone who is not an expert in their problem. They may trust their financial planner, investment advisor, or general insurance broker implicitly in that person’s area of specialization. That does not mean they want to discuss their prior drug use, Crohn’s disease, or bankruptcy history with them.

Third of all, the use of a specialist has become standard operating procedure for dealing with many professionals. When people have a special medical problem, they go to a doctor who specializes in that area. They may go to a general practitioner for an annual check up, but will go to a nephrologist for a kidney problem. Likewise with legal issues:  attorneys with specific expertise are sought for estate planning, litigation, or real estate matters.

Prequalification is the key to client satisfaction.

Potential applicants who pose a higher underwriting risk realize they need special underwriting attention; at the same time, however, they expect the same level of service as people who present a standard or preferred risk. They assume their application will be approved at the rate quoted.

My firm accomplishes this with a state-of-the-art prequalification process. We invest significant resources in each client to obtain thorough and accurate quote information. All underwriting issues are identified before an app is taken. Very importantly, we confirm that the potential applicant is a “ready buyer,” and will indeed accept the policy if the application is approved at the rate quoted it. Our placement ratio of applications to quotes is very high with our wholesalers, and this encourages them to work with us on both underwriting and service.

The quotes we provide are therefore both competitive and reliable, and our clients can submit a formal application confident of the outcome. We remain their advocate throughout the underwriting process to insure an approval at the rate quoted.

Why conventional life insurance sales operations do not prequalify candidates.

The vast majority of life insurance sales people do not prequalify their clients for coverage. Those that do prequalify, typically do not do so effectively. This includes both full-time brokers and agents, as well as other financial consultants who sell life insurance as a side product. There are several reasons for this.

First of all, field underwriting is not typically part of their sales training. They are not knowledgeable in all the various risk areas that affect mortality. They don’t develop the people-skills needed to guide potential applicants in the full disclosure of private health and lifestyle information. Nor have they developed an efficient system for conducting client interviews, obtaining medical records, and acquiring all the other necessary quote data.

Secondly, they have not created the complex network of connections that are needed to consistently obtain good rates for large numbers of people posing diverse underwriting risks. Affiliations with different general agencies are required to have access to a wide variety of underwriters. Research into new vendors offering new companies and products needs to be conducted on an ongoing basis.

Most importantly, the standard of “an approval at the rate quoted” is not integral to the business model of many sales people. All too often, they submit an application speculating that their client will be approved at all, let alone at the rate quoted. When inevitable problems arise, they have not positioned themselves as client advocates to hold both the general agent and the underwriter’s feet to the fire.

How to significantly increase sales revenue in your firm.

The impaired risk life insurance specialist has a unique set of strengths. They can be utilized to complement the proficiencies of different types of financial services teams.

His expertise in substandard risks equips him to handle standard and preferred risks quite easily. A firm with core proficiencies outside of life insurance, such as in financial planning, investment management, or employee benefits, can utilize his talents to handle all life cases professionally. Life insurance can become a major source of revenue.

A firm that is well-established in closing jumbo and/or low-cost term cases may not have the prequalification system in place to effectively handle substandard cases. The specialist can then be brought in to close those sales. The firm now has the capability of handling all levels of risk.


This week’s seminar will take place on Thursday, May 10th, 4:00 p.m. to 4:30 p.m. EST.

A sales seminar with Darren Hardersen, FLMI, Principal of The Hardersen Group.

Darren will be discussing Foreign Nationals, Foreign Residents and Foreign Travel.

Dial-in Number: (515) 739-1245

Access Code: 240970

Online meeting link:  https://join.freeconferencecall.com/skobrin

Instructions: At the scheduled date and time of the meeting, dial in to the conference line. When prompted, enter the access code followed by hash (#).  To join the online meeting, click on the meeting link listed above and follow the prompts to join the meeting.


Come join our LinkedIn group!

“How to make your strategic insurance partnership hum with activity!”

This group is for brokers and advisers who have formed a strategic partnership with the Office of Steven H Kobrin, LUTCF/The Hardersen Group/Crump. It is also for financial professionals who want to learn more and potentially join us.

Strategic partnerships among sales people, general agents, and wholesalers are the wave of the future in our industry. Together we can bring the best products and services to more insurance consumers than ever before. This group will provide you with ideas and insights on how to do that. 

Simply click this link to join the group!   https://www.linkedin.com/groups/8635490
If you are a Linkedin member, just click the link and login.  If you are not a Linkedin member, you can join after clicking the link.

How to get the most out of your LinkedIn marketing

I have become a dedicated marketer on LinkedIn, and it has yielded substantial results! Here are my five tips for getting the most out of this medium.

 

  1. Make it a priority.

It’s a fantastic way to connect with prospects who otherwise you would never have a chance of meeting.

 

  1. Let people get to know you.

Share your personal story, views, opinions, and professional knowledge. Distinguish yourself from the crowd.

 

  1. Maintain a presence.

Be consistent in your posting. People should look forward to seeing what you have to say next.

 

  1. Be professional.

Hire a professional marketing firm to edit and publish your articles. Your posts should look sharp, read well, and show that you are top-of-the-line.

 

  1. Network.

Find other like-minded people, and people with whom you want to do business. Support their posts by sharing them, adding supportive comments, and linking to articles that provide additional information.

 


This week’s seminar will take place on Thursday, April 26th, 4:00 p.m. to 4:30 p.m. EST.

A sales seminar with Steve Kobrin, LUTCF, principal and founder of The Kobrin Agency.

How to get the most out of your LinkedIn marketing.  Steve will share the five tips that have helped him get substantial results from marketing on this medium. He will also explain why he favors this medium ahead of other social media. Come with your questions, and feel free to share your own experiences.

Dial-In Number:  515-739-1245

Access Code:  240970

Instructions:
At the scheduled date and time of the meeting, dial in to the conference line. When prompted, enter the access code followed by hash (#).