Image Problem/solution

[insuresu]

Thanks for your comment WMG. Yes, your paraphrasing is accurate.

In reference to DHK's question about what am I going to do about it, his response gave me food for thought I hadn't considered.

However, what I'm trying to do about it was the point of the OP. I'm trying to be an insurance guy, not a financial wizard. I'm trying to make it as simple and real as possible. I'm trying to be a good example. It doesn't mean I have all the answers. That is why I posted here, to get professional feedback from others, although some of the feedback has been more than I bargained for.

I'm glad to know there are others who seem to understand what I'm trying to say and do, whether we or not we agree, and who are willing to share their insights etc. That's what I believe a forum should be.

 

[Cash]

In my opinion, the BIGGEST problem our industry has... is that agents don't stay in the business. When agents don't stay, policy owners become orphaned policy owners. They don't get the service that they should get. There are NO "set it and forget it" policies. As people's lives change, so do their needs. The public is best served by agents that stay in the business long-term.

This also contributes to the idea that agents are only looking for a commission... because they won't be around later to serve what they sold. Clients don't want to be left hanging... so they would rather NOT deal with someone that they suspect won't be around. Hence the term 'fly by night'.

The 3rd is the traditional agency structure. Agencies generally don't do a great job with training anymore. It used to be that you could get great training... but now, they rely on the One Card System, in-house LUTCF/FSCP programs... and the project 200. They are all about the quick sale so the manager can be paid their override.

Hire 'em in masses, teach 'em in classes, sell all their family and friends, and fire their ***es.

An Employment Scam in the Financial Services Industry > HOME

Then you have the "financial entertainers" and other firms that proclaim a "one-size-fits-all" method of planning for the masses. Primarily "Buy Term and invest the difference". It seems the more they say it, the more people tend to believe it. Yet, it's being touted by people who have no clue about how whole life or any other permanent insurance product works. And then, these same firms and "financial entertainers" then have the gall to say that 'any agent trying to sell you a permanent life policy (or an annuity) is only looking after their own interests and is only trying to make a huge commission'.

But do we have an advocate for our industry? We actually do. His name is Ed Slott... and you can watch his PBS special on Rescue Your Retirement on my facebook page.

Also, our industry is also competing and destroying itself through marketing "bait and switch" tactics on term life insurance rates. They advertise "ultra-superman-preferred" in their rates... as though everyone can qualify for it. And because of the proliferation of term insurance rates, most people believe they can get quality insurance for next to nothing. Then, when a skilled agent shows a multi-thousand dollar premium (for the perception of death benefit only), they then question the interests in whom the agent is looking after - the client or their own pocket.

Then, because the agent field force isn't selling enough... companies find ways to go around the lack of agent production by selling direct to customers - in Walmart, on television, etc.

Add in the 'expose's' of agents being filmed when misrepresenting fixed indexed annuities (let alone real lawsuits going on in California)... and we've got MORE reasons not to trust the insurance professional.

Lots of issues that contribute to the perceived lack of respect for the life insurance professional.

The REAL question is... what are YOU going to do about it?

A big problem is that people hate salesmen..... any kind of salesmen selling any product. People tend to like their salesman but they hate salesmen.

It is kind of like politicians. Everyone hates congress but most still vote for their congressman/senator. They hate them because they aren't principled, willing to compromise and work with the other side. Never mine that being principled and willing to work with the other side are opposites, that is still what most people think.

I am not going to waste one second of my life trying to change someones mind that insurance agents are great; unless someone wants to have an honest conversation.

Most life insurance agents suck.

But most Doctors suck... and they go to school for 9+ years.

Most CPA's suck and they go to school for 4+ years.

Most of the crummy insurance agents will be out of the business within the year.... but that doctor that prescribes a Z-pack to everyone he sees..... that guy is around until he retires.

 

[sman]

I am not going to waste one second of my life trying to change someones mind that insurance agents are great; unless someone wants to have an honest conversation.

I don't try and change their minds with my words, but rather with my actions. When you put the clients best interest before your own and do what you say you are going to do, it's amazing how that sets you apart from the crowd.

I don't use "sales tactics". A person dealing with me isn't going to get a sales pitch. They are going to get honest conversation and a genuine desire to help solve their problem in the most efficient and economical way possible. And sometimes that means I don't get paid at all. At least not from that particular solution. But it pays off in the long run with a steady stream of referrals.

This is why it bothers me when someone says they try and sell an overpriced plan because of the simplicity of it. Look, if an agent gives a truly unbiased viewpoint between SI and FU and the client chooses SI, then you've done all you can do. But when someone tells me they prefer to sell SI over FU I have a tough time believing that person can be unbiased. Personally, I don't care which product the client buys as long as we're solving their problem and it's the most efficient and cost effective way to do it (assuming of course that I am the agent who sells it to them ). But as I said before, there are times where I help a client enroll in a plan and I get nothing (i.e. - Medicare Prescription plan).

 

[insuresu]

I remember when I was in about 6th grade, a teacher told a story about two boys who found a cat. They couldn't decide which of them would keep the cat.

They decided they would see who could tell the biggest lie. Whichever of them could do that would get to keep the cat.

As they pondered, a woman walked by and asked them what they were doing.

One of the boys told her they were trying to think of the biggest lie to tell each other.

The woman told them that lying was not a good thing, that they shouldn't be doing that, and that she never lies.

The two boys looked at one another and one said to the other, "give her the cat".

Now, substitute the word lie with the word bias.

 

[sman]

I remember when I was in about 6th grade, a teacher told a story about two boys who found a cat. They couldn't decide which of them would keep the cat.

They decided they would see who could tell the biggest lie. Whichever of them could do that would get to keep the cat.

As they pondered, a woman walked by and asked them what they were doing.

One of the boys told her they were trying to think of the biggest lie to tell each other.

The woman told them that lying was not a good thing, that they shouldn't be doing that, and that she never lies.

The two boys looked at one another and one said to the other, "give her the cat".

Now, substitute the word lie with the word bias.

Whatever makes you happy and lets you sleep at night.

 

[VolAgent]

You push SIWL to people who can pass underwriting. You are part of the problem in this industry.

If that is really the biggest problem the industry faces, then we are in great shape.

I haven't heard anyone talking about how great a shape the life insurance industry is in...

 

[sman]

If that is really the biggest problem the industry faces, then we are in great shape.

I haven't heard anyone talking about how great a shape the life insurance industry is in...

He only said it was "part" of the problem. DHK summed it up pretty well.

 

[scagnt83]

If that is really the biggest problem the industry faces, then we are in great shape.

I haven't heard anyone talking about how great a shape the life insurance industry is in...

I wouldnt call it the biggest problem.

To be more precise agent education, retention, & professionalism is one of the largest problems with the industry currently.

Far too many agents want to get started "quickly & cheaply". They treat it as a job and not a business or career. And far too many agencies have the revolving door mentality. Recruitment quotas push them to put any warm and willing ass in the seat.

I have no problem with any product within the industry. But I do have issues with how those products are sometimes sold. And that includes every single life insurance product. Often it just comes down to a lack of training or education or caring on the agents part.


But I think that right now is a great time to buy/sell life insurance. Product innovations and technology have come a long way and have never been better if utilized properly.

 

[VolAgent]

He only said it was "part" of the problem. DHK summed it up pretty well.

I agree, DHK was spot on. Agent retention, which is driven by agent recruiting and agent training, is the heart of the problem.

Fix that, and a lot of other problems fix themselves.

As I stated on the other thread, I haven't read what this guy does and I don't care to read about his business practice. But several posters need to get off their moral high horse. Selling SI to someone who might qualify for fully underwritten is hardly the end of the world. Most applicants would rather just avoid the exam, for smaller policies the pricing generally isn't that huge, and if they now have coverage versus not having coverage, the applicant is in a better spot.

Sort of like those LH versus the rest of the FE crowd threads. Yeah, Lincoln Heritage and Senior Life suck but they suck less than not having any coverage.

 

[scagnt83]

But several posters need to get off their moral high horse. Selling SI to someone who might qualify for fully underwritten is hardly the end of the world. Most applicants would rather just avoid the exam, for smaller policies the pricing generally isn't that huge, and if they now have coverage versus not having coverage, the applicant is in a better spot.

Sort of like those LH versus the rest of the FE crowd threads. Yeah, Lincoln Heritage and Senior Life suck but they suck less than not having any coverage.

If an agent is honest about the pros/cons/premiums then I have no problem with selling SIWL to a healthy person if thats what they choose.

And for small FE type policies I can understand at times pushing SI over FU.... but of course often a FU policy does not require a paramed at those face amounts either.

But when agents use scare tactics with healthy people on the risk of being declined. Or just dont know that some FU policies do not require blood/urine for low "FE type" amounts and tell clients otherwise. Or sell SI first and then at year 2 suggests they go FU to save money (and double their comp). That is a problem.