Help Needed With Transition From Stockbroker To Estate Planner

StrictlyIndependent · 10-25-2009, 06:29 PM

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Howdy!,

This is my first thread/post so please excuse any mundane questions I have as I am currently ignorant to much of the insurance world.

I have been a stockbroker for the past 9 years (active until 2007) and made a move into life insurance a few months ago.

I have been cold-calling business' for Estate Planning and have been setting appointments but thats where it ends for now. My "mentor" and I have met with prospects with estates ranging from 2mm - 40mm so I know the money is there.

To make things tougher my firm wont pay me a salary unless I bring in a bunch of small business. This is difficult with estate planning from what I've heard, most established reps only write 5-10 cases a year.

Any advice would be greatly appreciated.

Thanks a bunch guys,
John

*djs* · 10-26-2009, 01:00 AM

John -

Just out of curiousity, how did you pick 'estate planner'? Do you have a background in this area? It is one of the most complex areas of financial planning, personally, when someone wants a true estate plan, I refer the business out. Not my area of expertise.

Personally, I think most estate planning is done by referral, and I know cold calling into large accounts is very tough. Of course, you don't need many in any given year to do pretty well.

I know people do exactly what you are talking about. I'm just never sure if it is the right place for people to start, due to the low volume and complex nature. Hopefully, you have some day to day life products that you can sell while you learn a lot.

Dan

StrictlyIndependent · 10-26-2009, 01:43 AM

Originally Posted by djs

John -

Just out of curiousity, how did you pick 'estate planner'? Do you have a background in this area? It is one of the most complex areas of financial planning, personally, when someone wants a true estate plan, I refer the business out. Not my area of expertise.

Personally, I think most estate planning is done by referral, and I know cold calling into large accounts is very tough. Of course, you don't need many in any given year to do pretty well.

I know people do exactly what you are talking about. I'm just never sure if it is the right place for people to start, due to the low volume and complex nature. Hopefully, you have some day to day life products that you can sell while you learn a lot.

Dan

My background is transaction brokerage business dealing with high net worth business owners. I found I was only capturing a small piece of the pie with investments. I also enjoy complex problem solving. I currently have a trust & estate attorney with 40 years of experience who handles the trusts,wills, etc. I handle the coordination of their financial products.

The firm im employed with at the moment gives estate planning classes everyday and have several attorneys on call. I've been told most agents don't start with Estate planning but the small stuff bores me and I don't want to pigeon hole myself. I have no problem setting appointments with business' doing between 5mm - 20mm in sales volume(haven't tried higher yet). I just can't get anyone to close and wondering why.

Thanks for your advice

LGilmore · 10-26-2009, 02:29 AM

"I just can't get anyone to close and wondering why. "

Cause it's a slow process. Every plan I worked on took at a minimum 6 months to a year. In many cases you will have to wait until other things are done before you get to the application process as well. You've gone from stockbroker to insurance agent without understanding the difference. Insurance agents get paid last.......

brookfieldpartners · 10-26-2009, 09:59 AM

An estate planning case doesn't normally just happen. You need to make these people clients with whatever product you have in your arsenal.

From there, trigger a talk about what would happen if....(they didn't come home from work, etc)

Estate planning is something that doesn't happen quickly. I have been in the business for a while, and I probably only do about 5 - 10 cases per year. Each case is about 25-50k in target premium.

My best suggestion is to make the people a client, find the need, have them recognize the need (don't sell), and they will become a great client.

Don't say, "Mr. Prospect. you estate is worth 10mm, if you die your heirs will get about 5mm. Does that concern you?" Doesn't really work, it normally doesn't, very few it will. The response you will tend to get is, my heirs don't need 5mm.

What I find more powerful is, "Mr. Prospect, you have these couple businesses and real estate? If something happened to you, how would you distribute these properties/businesses?"

Then educate them on what would really happen, and how you could help ease the distribution.

Hope this helps, it really deserves a longer entry.

brookfieldpartners.com

*djs* · 10-26-2009, 11:45 AM

My background is transaction brokerage business dealing with high net worth business owners.

This is a good start. You have to switch from transaction business to relationship business. This can be hard to do, but everyone has to make a change, and this is probably no harder than some other change.

I sell primarily P&C stuff. For the most part, this is a transaction based business. I use this transaction to begin a relationship, where I can get a deeper reach with my clients, picking up additional products and services. This is why I became a P&C guy, the initial transaction is pretty easy.

I found I'm not comfortable when it comes to true estate planning. You appear to have the resources to make it really work though, which is awesome.

You have to get past the transaction mentality, which actually shows in your posts. Everything has a transaction piece, but estate planning is more relationship than transaction. I agree with Brookfield though, try to get a smaller transaction to occur early on, and then develop the relationship.

Dan

Franz Kafka · 10-26-2009, 12:45 PM

Originally Posted by StrictlyIndependent

Howdy!,

My "mentor" and I have met with prospects with estates ranging from 2mm - 40mm so I know the money is there.

What kind of high premium production has your "mentor" done? It's one thing to know about estate planning (e.g. estate attorneys know a lot about it) but quite another thing to be able to dumb down your presentation and close (something attorneys can't do). In addition high net worth clients will always talk to their lawyers and CPAs first re your proposal and the latter will always try to talk them into not using you (maybe this is what has been happening with you). Working with other advisors without getting stabbed in the back by them is probably the hardest part of what you're trying to do.

StrictlyIndependent · 10-26-2009, 07:54 PM

Originally Posted by Franz Kafka

What kind of high premium production has your "mentor" done? It's one thing to know about estate planning (e.g. estate attorneys know a lot about it) but quite another thing to be able to dumb down your presentation and close (something attorneys can't do). In addition high net worth clients will always talk to their lawyers and CPAs first re your proposal and the latter will always try to talk them into not using you (maybe this is what has been happening with you). Working with other advisors without getting stabbed in the back by them is probably the hardest part of what you're trying to do.

The agent Im running the appointments with is very experienced. He closed a 250k premium last month and has met with indiviuduals whom required 1mm premiums.

From reading all these posts I think Im just being too hard on myself. I need to give these guys time to get to know me and not rush them. If you guys have any other tips it would be greatly appreaciated.

Thanks guys!

scagnt83 · 10-26-2009, 08:10 PM

Originally Posted by Franz Kafka

What kind of high premium production has your "mentor" done? It's one thing to know about estate planning (e.g. estate attorneys know a lot about it) but quite another thing to be able to dumb down your presentation and close (something attorneys can't do). In addition high net worth clients will always talk to their lawyers and CPAs first re your proposal and the latter will always try to talk them into not using you (maybe this is what has been happening with you). Working with other advisors without getting stabbed in the back by them is probably the hardest part of what you're trying to do.

Very true. Its rare to find an estate planning attorney who is good in front of a client when it comes to the financial side of things. Vast knowledge of life products, annuities, qualified investment tax code, and financial planning software; to present and explain the complexities of how repositioning their assets and utilizing the trusts, and utilizing LI will benefit them and their loved ones.

You as the financial mind behind the process, need to have a good grasp of estate planning concepts; so that you can design the products and possibly reposition assets in benefit of the client. With the proper education on the subject, product platform, and planning software; an agent can be a huge asset to the process and not minimilized.....and not backdoored by the CPA's golfing buddy who buys him free rounds each month in exchange for estate planning cases!!!

So I guess im saying that its a complex area. But it seems that you are in a good situation to learn, and have the people skills to set appoinments and close. Good luck to you.

bluemarlin08 · 10-26-2009, 11:19 PM

It's your mentor's job to close the deal. I was in the same spot you are back in 1980 when I started, I teamed up with a successful agent and we did well. I suggest you insist on being involved with all technical breakouts and ask lots of questions. Maybe your mentor isn't the right pick. Estate cases can take a long time to close so you have to be able to financially weather the storms.