Monday Memos

The “Four Career Majors” in life insurance selling

In my experience over the last 26 years selling life insurance, I have found four basic ways people can make money in this business. The strategic partnerships I help set up are designed to help you make it big in the venue of your choice. Of course, you could get active in the other areas as well, to supplement your production in your main focus. It’s kind of like college, where you have a major concentration, but could also have a minor.

Here’s what I see as the “Four Career Majors” in life insurance selling

  1. Impaired risk specialization

This major is for life insurance brokers who want to become an expert at placing the tough life insurance cases. In doing so, you widen your prospect pool of potential clients to virtually everybody because you can place almost any risk, from super-preferred to heavily impaired. This also makes you an extremely valuable resource to accountants, advisors, and other centers of influence who want to refer all their clients to one firm for life insurance.

  1. Improved business profitability

This major is for producers in the life insurance, disability insurance, long-term care insurance, and/or fixed annuity marketplaces, who want to run their businesses more efficiently and make more money per sale. You can take advantage of the top commissions that are offered; the concierge services that will complete all your paperwork for you; and the availability of advanced underwriters, financial planners, and attorneys who can help you design large cases at no charge.

  1. Outsourcing for cross-selling

This major is for wealth managers, P&C brokers, bankers, group benefit consultants, and other financial advisors who have clients who need insurance and annuities, but who don’t sell these products themselves. You can refer the client to our consulting team to take care of everything for you, and split the commission with you simply for the referral.

  1. Passive income from business contacts

This major is for business consultants, retired insurance brokers, and others who are life insurance licensed and have extensive business contacts, but who really don’t want to get involved in any personal production. You can simply set up individual brokers, agencies, and other financial firms you know to use our platform of services; then, you can enjoy override compensation on all their production simply for making the referral.

 

 

This week’s seminar will take place on Wednesday, November 22nd, 11 a.m. to 11:30 a.m. EST.

 
How to cross-sell without spreading yourself too thin!”


A sales seminar with Brian Bircher of Crump Insurance Services.

Brian is our insurance consultant with Direct Sales Assist. He will provide tips on how to best utilize his team for referred business. They will close sales for life insurance, disability insurance, long-term care insurance, and fixed annuities, and split the case with you simply for the referral.

 

Find out how you can generate significant commission income by taking advantage of cross-selling opportunities while staying true to your core product or service.

 

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

 

 

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.

Three reasons why the “do it yourself” approach doesn’t work in financial services

Here’s the scenario: you sell life insurance, and just put the finishing touches on a very good sale with one of your best clients. Now he asks if you also sell disability insurance.

 

If you are like most of us, you will probably say to yourself the following:

 

“Sure, I have been in this business for a while. I am familiar with the product.”

“There are very good commissions in disability sales!”

“I really don’t want to get another broker involved and risk him stealing my business.”

 

These are perfectly reasonable sentiments; however, they probably won’t steer you in the best direction. Think about it. You just got the life insurance sale because you really know what you are doing. Your client trusts you. He would certainly buy life insurance from you again. And, he would certainly introduce you to his friends as a most capable insurance salesman.

 

Why risk all that just to get one more sale? Once you stretch yourself too far past your core competency, you end up providing inferior service. And that, my friends, can sink the whole ship. If this second sale is mishandled, then you can lose in three ways:

 

Your competency on the current sale could be questioned;

The possibility of future sales weakens dramatically;

and the possibility of introductions and referrals goes down as well.

 

This is why we have a consulting team to help you take care of cross-selling opportunities. You can stick with what you do best, and let a specialist take care of the rest. Everybody wins.

 

 

 

 

This week’s seminar will take place on Thursday, November 16th, 3 p.m. to 3:30 p.m. EST.  “How to generate significant override income on institutional clients!”

A sales seminar with Joe Cocanour, Director of Agency Services for Crump InsureNOW Direct.

Joe is our Crump contact for setting up institutional clients. He will provide insights on how banks, investment firms, and insurance agencies use InsureNOW Direct for cross-selling life insurance, disability insurance, long-term care insurance, and fixed annuities to their clients.

 

Find out how you can generate significant override income by helping financial institutions form strategic partnerships with Crump, so their representatives can take advantage of these cross-selling opportunities by using our consulting team.

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

 

 

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. 

 

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 generate new business with policy audits

An audit is simply a check-up on your client’s life insurance policy to make sure it is doing its job. Experts recommend that they have a policy audit at least once per year to make sure they have sufficient coverage and the best rate. An audit doesn’t require much time and costs nothing, yet it provides the peace of mind your clients expect from their coverage.

 

 

 

An audit will answer these six key questions:

 

 

 

1. Do you have enough coverage?Have circumstances changed in your life since you first purchased the policy? Do you have a need for additional coverage? Higher income, a new home, or an expanding family may create the need for more coverage.

 

 

 

2. Is your premium guaranteed for as long as you need?

For how many more years are the face amount and premium guaranteed? Is this enough time, or will you need coverage beyond that point. If you need additional coverage, you’ll want to plan ahead to avoid steep premium increases.

 

 

 

3. Is the rate you are paying still competitive?

Are lower rates available, either for the short-term or the long-term? Has your medical condition or lifestyle changed in such a way that you would qualify for a lower premium?

 

 

 

4. Do you still have the most appropriate product?

Is the existing insurance policy still appropriate? Or would alternative products such as term, universal life, or whole life provide more value?

 

 

 

5. Are your owner and beneficiary designations correct?

Are the original designations still relevant? Or have changes taken place regarding your family, business, and estate that call for amendments to the policy? If your children have become of legal age, a beneficiary change may be appropriate.

 

 

 

6. Should you hold a policy on your spouse, kids, or business partner?

Does your spouse have enough coverage? Is it time to start policies on your children? How about life insurance on your business partner and key executives to protect your business interests?

 

 

The audit process is simple:

 

 

Step 1:

Let’s discuss any changes to your circumstances, concerns you may have, and objectives you may aim to accomplish.

 

 

Step 2:

I will obtain an in-force illustration of your current policy. One of my underwriters may also ask to speak with you to get any additional data that would be needed.

 

 

Step 3:

I will report back to you with an assessment of your current policy and a comparison with available alternatives and recommendations.

 

 

The Results

The audit is designed to give you peace of mind. On the one hand, we may conclude that your policy is appropriate and nothing should be changed.

On the other hand, we often find that audits reveal coverage that needs an adjustment. Fortunately, we will have generated options to solve any problems, and are able to implement solutions quickly.

 

 

 

 

This week’s seminar will take place on Wednesday, November 8th, 3 p.m. to 3:30 p.m. EST.

 

“How to generate new business with policy audits”

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

Steve, an expert on life insurance prequalification, having helped thousands of Americans get insured at affordable rates has been specializing in tough life insurance cases for over 26 years. He will provide tips on how to generate new business with policy audits.

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

 

 

 

 

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 search for the group from your LinkedIn account, and ask to join.

Why the sales person has to be a team leader

I have found that to succeed in the financial services industry today, you have to wear at least three hats: expert in your field; business person; and team leader. We have covered the need to be a product or service specialist in other articles, and will continue to write about this theme. In addition, the importance of being a good business person has been addressed, and more attention will be given to this in the future as well. This post will focus on being a team leader.

The bottom line is that it takes a team to service a client. There is no escaping that. An insurance or investment sales person simply cannot perform all the functions necessary to deliver client satisfaction. When I first entered the life insurance business almost three decades ago, I was educated about a behavioral-typing model that described a very effective client service team. The model looked like this:

Finder: the marketer who would prospect for new business.

Minder: the advisor who would simply pick up the phone and see how clients or prospects were doing.

Grinder: the technician who would provide quotes/illustrations/underwriting information.

Binder: the product or service expert who would be brought in to close a sale.

If you are in business for yourself, you always have to have some Finder in you. To generate ongoing activity, you have to connect with potential prospects. Either you do it yourself, or you pay people to do it via one of the many marketing methodologies available, both online and off. Then, when you come across a sales opportunity, you spring your team into action. And you know what? It’s a very good selling point to say that you have a team behind you of top-caliber professionals to get the job done thoroughly and accurately. Together, they back you in delivering the highest quality service to your client.

 

This week’s seminar will take place this Thursday, November 2nd, 3 p.m. to 3:30 p.m. EST.

“How to place impaired-risk life insurance cases!”

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

Darren is our General Agent with Crump, our MGA. He will provide tips on how to place impaired risk life insurance cases. He will explain how to prequalify your candidates so that the quotes you give them are not only competitive but reliable, so they can be confident their application will be approved at the rate quoted.

Find out how you can generate significant commission income by helping people purchase policies who have a serious medical condition; an adventurous hobby; an issue with their motor vehicle, financial, or legal record; or other rather risk factor that needs special handling.

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

 

 

 

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 search for the group from your LinkedIn account, and ask to join.

What’s the big deal about specialization anyway?

I am very much a “big picture” kind of person. You need to look at the totality of a problem in order to really solve it, as opposed to coming up with piecemeal solutions. This is why I am an advocate of holistic healing, which looks at the body as a whole integrated system. It’s also why I seek out exercise regimens that require you to use the whole body, as opposed to just specific limbs.

 

But it’s also important to recognize that within the holistic approach, specialized treatments are employed. After a comprehensive assessment, your healer may feel that herbs, acupuncture, and physical therapy are all called for. In all likelihood, that person is not a master in every one of these fields. They would have to refer you to one who is. This way you would receive the best treatment available under the direction of a “healing quarterback.”

 

The same model applies to the financial business. Your planner, wealth manager, or consultant can generate a comprehensive plan for wealth accumulation and preservation. Specific products and programs may be called for, ranging from investments to many forms of insurance. But is that planner going to be able to get you the best value, the best pricing, the best underwriting for every one of these products? No. No one financial consultant can master every one of the financial modalities, just as no one healer can master everyone of the healing modalities. There is simply too much knowledge, and experience, and growth required in each field to become a master.

 

This is why specialists are needed.

 

This week’s seminar will take place on Wednesday, October 25, 11 AM to 11:30 AM EST.

 

“How to cross-sell without spreading yourself too thin!”

A sales seminar with Brian Bircher of Crump Insurance Services.

Brian is our insurance consultant with Direct Sales Assist. He will provide tips on how to best utilize his team for referred business. They will close sales for life insurance, disability insurance, long-term care insurance, and fixed annuities, and split the case with you simply for the referral.

Find out how you can generate significant commission income by taking advantage of cross-selling opportunities while staying true to your core product or service.

 

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

Three reasons for why wealth managers should not sell life insurance (themselves)

Wealth managers are ideally positioned to identify a need for life insurance in their clients. So are property and casualty brokers, bankers, group benefit consultants, investment advisors, and financial planners. However, there are pretty compelling reasons for not doing the selling yourself.

 

First of all, your professional expertise is in a different area. You don’t want to under-serve your client – who expects nothing but the best from you.

 

Second of all, you probably don’t have the type of relationship with your client through which complete prequalification can be completed. People need to feel comfortable talking about their depression history, or Colitis, or alcohol issues, or just plain reluctance to confront their own mortality. If you can’t guide them in going through full disclosure, then you will not be able to provide your general agent with thorough and accurate quote information, and so your life insurance quotes will not be both competitive and reliable.

 

Third of all, your business organization is probably not set up to give you access to the wide world of companies and products in the brokerage marketplace. Nor do you have the industry intelligence required to select the carrier that would be most competitive for each client from an underwriting point of view. How, then, can you be expected to make the best recommendation for your clients?

 

The solution to these problems is, of course, forming a strategic partnership with a life insurance firm that has the expertise, specialization, and business organization necessary to help each and every one of your clients get the best value for their life insurance premium dollar. When your client needs life insurance, simply refer them to the life insurance specialist so they can receive the personalized and superior level of service to which they have become accustomed.

Our next seminar will take place this Thursday, October 19, 3 PM to 3:30 PM EST.

 
“How to generate significant override income on institutional client’s”

 

A sales seminar with Joe Cocanour, Director of Agency Services for Crump InsureNOW Direct.

 

Joe is our Crump contact for setting up institutional clients. He will provide insights on how banks, investment firms, and insurance agencies use InsureNOW Direct for cross-selling life insurance, disability insurance, long-term care insurance, and fixed annuities to their clients.

 

Find out how you can generate significant override income by helping financial institutions form strategic partnerships with Crump, so their representatives can take advantage of these cross-selling opportunities by using our consulting team.

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

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, and how I have built my brokerage to master that craft.

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); and

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.)

A family tradition of impaired risk expertise.

From day one in my career I have specialized in the impaired risk sales. This is an area of expertise I inherited from my father, who was one of the first general agents to focus on substandard business, back in the 1950s and 60s.  He helped local captive agents place their outside business.

I have built upon this model, and expanded it to form a national life insurance brokerage helping financial advisers of all professions service their higher-risk clients. These advisers include group benefit brokers; financial planners; P&C brokers; investment advisors; and life insurance brokers who focus on jumbo cases or low-cost term.

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.

Our next seminar will take place TODAY October 9 at 4:00 EST.

 

“How to find impaired-risk life insurance prospects!”
 

A sales seminar with Steve Kobrin, LUTCF, principal and founder of The Kobrin Agency.
Steve has been specializing in tough life insurance cases for over 26 years. He will provide tips on how to find prospects who typically have difficulty finding coverage due to a higher underwriting risk.

 

Find out how to increase your prospect pool with consumers, with associations, and with centers of influence.

 

Schedule: the second Monday of every month, 4 PM to 4:30 PM EST.

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me.

What expectations should you have of your general agent for impaired risk cases?

In a prior Monday Memo, I highlighted the skills and practices you should have if you want to place substandard life insurance business. Here now I present the other side of the coin – the skills and practices that should be presented by your general agent. After all, it is through the collaboration of the GA and broker that the client’s immediate and future needs for life insurance are met.

I am pleased to say that the Hardersen Group has these qualifications, which is why I use them for my higher risk business – and which is why I am encouraging you to do the same!

  1. What to provide your GA: a Ready Buyer.

Your client must have a need for life insurance; the means to pay for it; and the intent to buy a policy now. Otherwise, it is not worth their time, your time, or the general agent and carrier’s time to prequalify them and put them through underwriting. Of particular importance is their premium threshold – the amount of money per month or year they would be comfortable paying for life insurance.

What to expect from your GA: attitude attitude attitude. 

They should be keenly motivated to get this done. If you as a broker deliver a client with his checkbook out – ready to do business – then your GA should be prepared to scour the ends of the earth to get an offer.

  1. What to provide your GA: thorough and accurate quote information.

This includes the completion of quote questionnaires; copies of prior application; medical records as needed; and the completion of risk questionnaires/follow-up information. If these items are not readily available, you will need to work with your client to obtain them.

What to expect from your GA: a sophisticated in-house quoting capability.

It can’t always be a question of just sending the case out to carriers and waiting for responses. If the GA truly is a specialist in high-risk cases, they should have enough skills and experience to get you into a price ballpark without having to shop it out. If the case is too complex to prequalify without records or carrier input, they should be able to specify in short order what additional information is required.

  1. What to provide your GA: an application.

It is expected that once prequalification is completed and reliable quotes are presented, you will close the sale and gain your client’s agreement to submit an application. It is vitally important that you have the highest possible ratio of applications to quotes in order to continue to receive favorable underwriting from carriers.

What to expect from your GA: concierge brokerage services.

Once you close the sale, their underwriting team should take it from there. They should get the application completed for you, get the client signature, and move right into case management. This way you can move on to the next sale and not burden yourself or your staff with administrative chores.

And they should do this for a case of any size and any product – not just the big cases.

  1. What to provide your GA: client management.

Both the prequalification and underwriting processes can be long and arduous. Your client will need you to lead them on this journey with confidence. You will need to keep them updated on their progress; help resolve issues that arise; and advocate on their behalf to make sure their interests remain front and center.

What to expect from your GA: advocacy.

There should be a full-court press to get an approval at the rate quoted. If no information emerges in underwriting to contradict the preliminary file, then you should get the rate at which you sold the case. What if one underwriter prequalifies the case at Table 4, but the underwriter who gets the app says it should be Table 6? Not your problem.

  1. What to provide your GA: client insurability monitoring.

For applicants that pose higher risks, the life insurance purchase often takes place in stages. Improvements in their medical condition/lifestyle can make them eligible for lower pricing and better value in the future. They will need guidance on when to go back to market to upgrade their coverage.

What to expect from your GA: guidance on setting up the next sale.

If a case cannot be placed now – and sometimes that is the case – then the GA should specify the circumstances under which the case could be placed. What changes in medical condition or lifestyle would need to be made?

Similarly, let’s say this time around the client qualifies for a Table 6. What has to happen for that to be Table 4 or better in the future?
This week’s sales seminar:

 

How to place impaired-risk life insurance cases!”

 

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

Darren is our General Agent with Crump, our MGA. He will provide tips on how to place impaired risk life insurance cases. He will explain how to prequalify your candidates so that the quotes you give them are not only competitive but reliable, so they can be confident their application will be approved at the rate quoted.

 

Find out how you can generate significant commission income by helping people purchase policies who have a serious medical condition; an adventurous hobby; an issue with their motor vehicle, financial, or legal record; or other risk factor that needs special handling.
Please call me at (201) 796-8142, or email  skobrin@stevenkobrin.com, if you would like to start placing higher-risk cases directly and keep 100% of the commissions.

 

This Wednesday, October 4,  3 PM to 3:30 PM EST.

 

Very important note: only brokers who have signed up with Crump and are participating in our strategic partnership will be given access. If you have not yet filed your paperwork with Darren, please do so now! If you have any questions, please feel free to contact me. My office will be closed periodically throughout the next few weeks for religious observance.

The difference between cross-selling and cross-marketing

Here’s the situation: you are a wealth manager and have just set up a client with an investment portfolio that is just right for them. They are satisfied, you are satisfied. During the course of your consultation with them, you identify needs for life insurance, and possibly also disability insurance and long-term care insurance.

 

They trust you as their professional advisor, and are open to doing additional business with you. This is a classic cross marketing opportunity. The question is: who should do the selling of the additional products?

 

Maybe you. You are familiar with these products, since you are in the financial services industry. You do have access to some good ones. But here’s the thing: you have generated enormous good will, and established solid credibility, as an expert in your field. If you can’t deliver the same level of service in these cross marketing opportunities, you run the strong risk of not a only losing those sales, but having your client take his core business with you elsewhere.

 

So what should you do? In this case, I think you should bring in an expert who is as capable in the supplemental products as you are in your core product. Let that person take care of the cross-selling for you and keep your client equally satisfied. You’ve done the cross marketing, he does the cross-selling; you both split the case, and everybody wins.

 

Of course, your cross-selling strategic partner should have certain qualifications. They should be a specialist in that product line, or at least a consultant who has product specialists on his team. They should be completely independent and have no bias towards any carrier. And, they should have access to all the products in the marketplace, to make sure that your clients end up with the most appropriate and competitive products for them.

 

Our sales seminars are starting this week:

How to cross-sell without spreading yourself too thin!”

How to deal with a lack of medical records for prequalification

A major challenge in prequalifying people for life insurance, is the lack of current medical records. Sometimes people get a lab test done, and the results show abnormalities.  However, due to all kinds of reasons, they never follow up. This makes their medical records incomplete; therefore, they are typically not yet eligible for coverage. The emphasis is on the word “yet”, because with a follow up, they very well may qualify for a policy, and at a reasonable price.

 

 

If there are indications of organ dysfunction from lab results or prior records, it is perfectly reasonable for an underwriter to demand current test results. No carrier would want to insure somebody who could unfortunately be a walking health time bomb. I make this point to my clients. I stress that, putting aside the need for life insurance, it is entirely in their self interest to go to a physician and determine the current state of their health. They need to know if they have issues that should be addressed. Then, armed with current health data, we can prequalify them and confirm their eligibility for coverage – and at what price.

 

 

It is understandable that people often put off medical visits. It’s a big hassle, and costs time and money. People need to feel comfortable. I have a client who was referred to me by his property and liability broker. That fellow had been searching for life insurance for a year, and found no takers. When I got a hold of the case, I quickly determined that the dealbreaker was a lack of recent medical records. The man had had major heart surgery four years prior, but had gone for no follow-ups since!

 

 

I told him that unfortunately, every insurance underwriter he had approached was considering him to be a potential claim pending. Putting that aside, didn’t he want to know how well the surgery had worked? I asked him why he had seen no doctors. He explained that he had moved from one state to another, and hadn’t yet connected with a local cardiologist. I politely but persistently emphasized that he owed it to himself, his family, and his business to find out what was going on.

 

 

He agreed, and actually went back to his former state to see his original cardiologist. He made a whole trip out of it, visiting relatives and such. A few weeks later he came back with sufficient records to show that his health was OK, and was able to purchase a policy.

 

Part of our function as impaired risk specialists, is to coach people on becoming eligible for coverage. In fulfilling this responsibility, we are doing them a great favor, for both their health and their life insurance.