Insurance Agent Forum

[James]

I'm assuming that most have read about the flattening of Life Insurance Sales (including other lines such as DI) in the last decade or so. Basically, I'm wondering why? Term is getting cheaper all the time, the term length is longer and longer, in another thread someone brought up the 40 year term to go along with the 40 year mortgage. Yet while the discussion didn't go into their even being a 40 year term product, it is still an interesting discussion all do itself!

I'm yet wondering why the flattening of sales? Is due to the Insurance Carriers themselves? We all know they seem to have change marketing attempts, more and more these carriers seem to be moving to a BGA or whatever, moving the sale force outside of the company. Or does the problem lie in the Agents themselves along with the product? Or could it be the general public does not see value in it?

[STIBROKER@AUSTIN.RR.COM]

because life insurance is a tough sale....people do not like to think about dieing......

Originally Posted by James

Basically, I'm wondering why?

[James]

I'm assuming people didn't like to think about dieing years ago either, but...

[Krono]

It could be because we are becomming increasingly selfish. It is a choice:

Choice A: Lotsa 'stuff' now leaving your family in a bad sitch when you die.

Choice B: Lotsa insurance now leaving your family in a good sitch when you die.

Not much different that those that forego health insurance. My wife has a friend that 'can't afford' health insurance for her and her two sons...but she has a brand new shiny loaded Suburban in her driveway, eats out every day, and owns nothing but designer/name brand clothing...maybe my wife needs to find a new custome...er...uh...friend.

[James]

Originally Posted by Krono

It could be because we are becomming increasingly selfish. It is a choice:

Choice A: Lotsa 'stuff' now leaving your family in a bad sitch when you die.

Choice B: Lotsa insurance now leaving your family in a good sitch when you die.

Not much different that those that forego health insurance. My wife has a friend that 'can't afford' health insurance for her and her two sons...but she has a brand new shiny loaded Suburban in her driveway, eats out every day, and owns nothing but designer/name brand clothing...maybe my wife needs to find a new custome...er...uh...friend.

No doubt, if insurance is sold as a commodity it'll likely not do well when put side by side with the new Ipod Cellphone.

Yet though, exactly how many people have small 50-150 grand policies via work? A lot I imagine, while not the best are the people suggesting that more insurance is not needed?

[James]

I'm told by some that digital is the way to go! If insurance can not be sold online than the death of Life Insurance and other types. Much like this sites that promote Term Only Financial Group (that is right, two sales per hour! I guess we won't be underinsured for long!), now I'm not sure, if online sales means selling NonMed with digital signature can we only imagine if we want to be in the biz to begin with. While I'm not against these policies per say yet I don't think they are all that great unless specifically place for short time need of insurance. Yet looking at the lapse rate being touted about on these plans I guess most feel the same way!

Ps, this is the claim on the website that I find in so many:

MAKE TWO SALES EVERY WORKING HOUR! -

• Clients CALL YOU!
• Work When YOU Want
• Never Leave Your Desk

[David C]

I've heard that the number of agents has shrunk through the years, combine that with the survey (LIMRA, I think) that says a large percentage of families have not been approached by an agent recently, and you get decreasing sales.

Additionally, I'll say that I do encounter resistance getting people to but the amount of life insurance they need.

[James]

Originally Posted by David C

I've heard that the number of agents has shrunk through the years, combine that with the survey (LIMRA, I think) that says a large percentage of families have not been approached by an agent recently, and you get decreasing sales.

Additionally, I'll say that I do encounter resistance getting people to but the amount of life insurance they need.

While obviously this problem has many reasons, not one of which is the so called "Need", and how one defines that.

[Alston]

There are fewer agents today for various reasons. Agents play a big part in "creating" the market for insurance. Fewer agents, smaller market. Smaller market, fewer agents.

The lower term rates mean lower commissions. Certain products can only be sold to certain prospects face-to-face. The lower commissions mean that they can't be sold profitably face-to-face. This means that fewer agents are talking about them. The market shrinks when people talk and think less about a product.

[James]

I would imagine at any time in any society you can define a "Need" and come away and state so many are Under-Anything! This is reminding me of the Retirement talk we all are hearing about, America is not ready for retirement, yet if you look there are studies that suggest quite the opposite or at least puts the picture in a better light. Such as this one, http://www.urban.org/UploadedPDF/100...ing_enough.pdf

I'm just wondering how we are defining the problem of UnderInsured? Here is one take that some might find helpful. Yet most that have Life Insurance fall under having enough to replace income of the death of the insured for 2.6 years. Most think that 5.7 years of income replacement is a proper amount.

http://www.flexfs.com/pdf/LIMRA-fact...lete%20(2).pdf

[Sir Ringo]

It's the I'll never die syndrome.

[JMO Fan]

Families have changed. Fewer see marriage, or even children, as a reason to have contingency funds, like life insurance. Husbands are not usually the sole breadwinner anymore, & do not feel as responsible to see that the family's finances don't fail if they die.

Also, most see life insurance as a temporary need, feel other funds (or none at all) are sufficient after the children are gone. Fewer fear the family having to pay estate taxes (if there are any to pay). Term insurance pays lower commissions, so the agent's incentive to sell a policy is lessened.

[James]

Originally Posted by JMO Fan

Families have changed. Fewer see marriage, or even children, as a reason to have contingency funds, like life insurance. Husbands are not usually the sole breadwinner anymore, & do not feel as responsible to see that the family's finances don't fail if they die.

Also, most see life insurance as a temporary need, feel other funds (or none at all) are sufficient after the children are gone. Fewer fear the family having to pay estate taxes (if there are any to pay). Term insurance pays lower commissions, so the agent's incentive to sell a policy is lessened.

The two income household is where the majority of change has come, at least IMHO. Temporary Need, now that one IMHO rest on the Insurance Industry and the New Age Agent, let's face facts, it is hard to sell W/L online or without a face to face so why not just badmouth it so we can sell term, the easier online sale or less trouble such as the Rapid Non Med Term.

Ps it's like people that develope term sites, obviously to sell or create leads for sale than they go around to all the forum sites seemingly to attack anyone that sells W/L. Obviously these people are serving their agenda.

[bartimus]

I am of the opinion that most people are over financed and buried in debt to consider the ramifications of loss of income when they are gone. It is a expense many probably personally feel is a waste of money considering all of the other things that can be purchased with the same money.

[Cenla Agent]

Originally Posted by James

I'm assuming that most have read about the flattening of Life Insurance Sales (including other lines such as DI) in the last decade or so. Basically, I'm wondering why? Term is getting cheaper all the time, the term length is longer and longer, in another thread someone brought up the 40 year term to go along with the 40 year mortgage. Yet while the discussion didn't go into their even being a 40 year term product, it is still an interesting discussion all do itself!

I'm yet wondering why the flattening of sales? Is due to the Insurance Carriers themselves? We all know they seem to have change marketing attempts, more and more these carriers seem to be moving to a BGA or whatever, moving the sale force outside of the company. Or does the problem lie in the Agents themselves along with the product? Or could it be the general public does not see value in it?

It's probably a combination of the things you mention. One Agency Manager in the life market told me it was because "there are no agents anymore." You said in another thread that life insurance is sold and not bought and I think that is basically correct. The new Mass Mutual TV commercials about it life insurance being in the back of most people's mind is right on the money. Most know they need it, but it is in the back of their mind and many are underinsured.

[Cenla Agent]

The points about the changing family dynamics with the husband no longer being the sole breadwinner as well as the indebtedness and changed spending habits as compared to 50-75 years ago are big factors too.