Life Insurance in a Recession

[MindfulAction]

I am an aspiring potential new agent. I was planning on beginning studying for my life insurance exam and taking the test as soon as a testing center opens up in my area. I am very concerned how the current economic and health climate will affect my initial start in sales. I was planning on starting and focusing on life insurance telesales (mainly FE). I realize the main market for FE is the senior population, and a large chunk of them are living on a fixed income.

I am curious to hear about insurance professionals' experiences during the 2008 recession. How heavily impacted was your business? What insurance products tend to be more vulnerable during economic stress? Would you recommend someone get started in this business as of now?

Thank you so much in advance for providing your valuable insight. Hope everyone is doing alright!

 

[DHK]

I am curious to hear about insurance professionals' experiences during the 2008 recession. How heavily impacted was your business? What insurance products tend to be more vulnerable during economic stress? Would you recommend someone get started in this business as of now?

There is always someone making money.

What problems are you helping people solve? Product salespeople suffer the most during an economic downturn. But problem solvers are far more marketable.

Btw, right now, we're in an economic SHUT-DOWN, not a "recession". So I think there's a huge difference right now, but you're looking to position yourself well once things are picking back up.

Watch these two videos for some great ideas:
The economy and common-sense brilliance

10 minutes of favorite sales ideas from two industry greats

 

[MindfulAction]

There is always someone making money.

What problems are you helping people solve? Product salespeople suffer the most during an economic downturn. But problem solvers are far more marketable.

Btw, right now, we're in an economic SHUT-DOWN, not a "recession". So I think there's a huge difference right now, but you're looking to position yourself well once things are picking back up.

Watch these two videos for some great ideas:
The economy and common-sense brilliance

10 minutes of favorite sales ideas from two industry greats

Thanks so much for the links. I will definitely check them out. Also, I agree it is very different, I was just trying to reference the most similar and most recent event that people could discuss. I realize extrapolating experiences from 2008 to now is probably pointless. I agree with your statement about selling products versus solving problems and that is one of the parts about life insurance that intrigues me so much; I truly think it is a key item everyone should have in their financial strategy that serves as a valuable tool to provide peace of mind. Thanks again for your insight!

 

[rousemark]

I am an aspiring potential new agent. I was planning on beginning studying for my life insurance exam and taking the test as soon as a testing center opens up in my area. I am very concerned how the current economic and health climate will affect my initial start in sales. I was planning on starting and focusing on life insurance telesales (mainly FE). I realize the main market for FE is the senior population, and a large chunk of them are living on a fixed income.

I am curious to hear about insurance professionals' experiences during the 2008 recession. How heavily impacted was your business? What insurance products tend to be more vulnerable during economic stress? Would you recommend someone get started in this business as of now?

Thank you so much in advance for providing your valuable insight. Hope everyone is doing alright!

Living on a fixed income is an advantage during an economic downturn. Most seniors are on Social Security and that does not go down. They do not lose their check because of layoffs. The money keeps coming. Plus, we keep dying and are no less aware of our needs. In fact, the economic downturn can even work to the FE agents favor because, in some cases, it does away with the excuse, "My children can pay for it"..

 

[MindfulAction]

[QUOTE="
Watch these two videos for some great ideas:
The economy and common-sense brilliance

10 minutes of favorite sales ideas from two industry greats[/QUOTE]

Just watched these. Wow! Absolute gold in these.

 

[DHK]

[QUOTE="
Watch these two videos for some great ideas:
The economy and common-sense brilliance

10 minutes of favorite sales ideas from two industry greats

Just watched these. Wow! Absolute gold in these.[/QUOTE]

If you want to learn more about the "Capital Equivalent Value of Life Insurance"... register for a webinar in the link in my signature below.

The next webinar is April 21st - "What Nobody Tells You About Taxes".

 

[Rearden]

I am an aspiring potential new agent. I was planning on beginning studying for my life insurance exam and taking the test as soon as a testing center opens up in my area. I am very concerned how the current economic and health climate will affect my initial start in sales. I was planning on starting and focusing on life insurance telesales (mainly FE). I realize the main market for FE is the senior population, and a large chunk of them are living on a fixed income.

I am curious to hear about insurance professionals' experiences during the 2008 recession. How heavily impacted was your business? What insurance products tend to be more vulnerable during economic stress? Would you recommend someone get started in this business as of now?

Thank you so much in advance for providing your valuable insight. Hope everyone is doing alright!

I started selling final expense in 2011 after realizing my fledgling personal training business wasn't going to make it any longer.

I'm thankful my first business in personal training failed, as every year in the business has become more and more lucrative in insurance sales.

Regardless of how badly coronavirus affects the nation, doing any business in the senior market will remain largely unscathed, if not overall improved.

Here's how I mean:

1) 11,000 seniors DAILY turn 65 for the next few decades. Since 2/25/2020 when coronavirus picked up steam, approximately 330,000 seniors turned 65.

By 2040, the senior population age 65 and older will DOUBLE.

The VAST majority of them either selected a Medicare Advantage or Medicare Supplement plan.

All you need to make a great (and largely passive) income is just 1,000 policy holders.

2) The average insurance agent is 60 years old. They aren't selling insurance to work until they drop. Most want out to enjoy a nice retirement sometime soon. That means less competition along with more prospects.

In addition, my understanding is the replacement rate of new insurance agents falls below the retirement/drop out rate. That means less competition, too =).

3) Seniors make an ongoing income from Uncle Sam that remains unchanged despite economic downturns. This means our clients have money for insurance premiums that working class families and above may not have access to or have fear of spending.

4) Turning 65 or starting your Social Security brings a host of "life events" that prompt life insurance, Medicare, and annuity purchases. Many lose their coverage from work and need a basic final expense plan. Virtually everyone turning 65 needs a Medicare policy. And clients retiring with money realize with fluctuations in the market like we're currently experiencing are not necessary to experience with the principle protection an annuity provides.

My prediction: over the next 20 years, those agents and agencies who focus on the senior market will set themselves up for a more consistent level of profitability and success than focusing on non-senior markets.

I'm definitely all-in on old people =).

 

[DonP]

The question is will more and more sales be telesales ? This has scared people beyond belief that human contact spreads germs. Will this cause people to not want an agent to come to their house? f2f agents were already seeing a change as its much harder to get people on the phone .For door knockers your seeing tons more ring bells even with poorer people. New screening software has been implemented by all phone carriers.Personally i think the future of insurance is Direct transfer leads and tv leads were the client initiates the contact.

 

[DayTimer]

Will this cause people to not want an agent to come to their house?

No! By the time this is over people will be starved for human contact! Agents who are willing to get out there and meet the people will thrive! The economy will boom, and the USA will be right back at the top of its game!

 

[WinoBlues]

No! By the time this is over people will be starved for human contact!

Human, not salesmen.

Agents who are willing to get out there and meet the people will thrive! The economy will boom, and the USA will be right back at the top of its game!

10x10.

To the survivors go the spoils.