Under-60 crowd not pulling their weight with life insurance applications

Apr 16, 2019

  1. Insurance Forums Staff
    Offline

    Insurance Forums Staff Super Genius

    Posts:
    124
    Likes Received:
    12
  2. Robert Barney
    Offline

    Robert Barney Guru

    Posts:
    1,304
    Likes Received:
    163
    The problem is the new agents, replacing the old agents.

    The new agents keep looking for way to cause the traffic to walk in the door.

    Most consumers don't buy life insurance, they are SOLD life insurance. If the agent doesn't go out and find prospects, and then get them to meet and discuss their need for life insurance, the product will not get sold.

    In fairness, it's harder than ever to contact consumers, particularly when you have "don't call lists" and people increasingly making it hard for sales people to contact them. We have the folks who carpet bomb those consumers with automated calling systems to thank for that.
     
  3. geocollie
    Offline

    geocollie New Member

    Posts:
    2
    Likes Received:
    7
    Funny that other financial service sectors don't have similar declines. Banks are closing branches but remain as profitable as ever. I'm no expert on the problems in getting non-seniors to buy life insurance, but I know it's not DNC or producers afraid of door knocking, cold calls or working Project 200. Face it, nobody picks up the phone except the elderly..And nobody does home visits anymore except Jehovah's Witnesses, process servers, and yes, FE agents.

    While made in jest, the title of the article hints at the larger problem with LIMRA et al. It's not the customer that has to pull her weight. Rather it's the companies and iMOs that develop products, market and sell like it's 1999.
     
  4. Allen Trent
    Offline

    Allen Trent Guru

    Posts:
    488
    Likes Received:
    357
    agents may be taking path of least resistance. senior clients have the time, follow through, have the money, awareness of mortality, know people that have died or gotten sick. They have seen the reason for the coverage need. So, for agents, the senior market is not only easier to connect with & get cases approved/placed, but the premiums end up being large enough to make it worth the time & effort.

    While the age 25-45 is the segment that needs the products the most, the opposite of above statements are true. when you take the age 25-45 term case to fruition, a $10-$25 per month term life sale will seem like nothing after spending many nights/weekends chasing down the client & rescheduling over & over.

    Worksite marketing & PC agents will continue to be called upon to serve the 25-45 marketplace as they tend to have more interactions with the segment when they keep buying big new houses, new cars, new boats/jetskis/toys & take on more debt.
     
  5. Robert Barney
    Offline

    Robert Barney Guru

    Posts:
    1,304
    Likes Received:
    163
  6. VolAgent
    Offline

    VolAgent Guru

    Posts:
    15,064
    Likes Received:
    1,871
    State:
    Tennessee
    Allen hit it on the head. Even if you go up to $50/per policies, if you are selling non-SI term, you're talking 80-100% FYC with no renewals. Oh, and you get to spend your nights and weekends chasing after people.

    Or you can work Monday through Friday, daytime hours by selling FE to seniors, AND get 100%+ FYC, up to 120% in many cases, PLUS renewals. And they don't duck you any more than working families, probably less.

    That is a real tough decision...

    Yes, there are underwear agents selling online, but that leaves a lot of the population who will never be a lead.
     
    VolAgent, Apr 16, 2019
    #6
  7. LostDollar
    Offline

    LostDollar Guru

    Posts:
    2,901
    Likes Received:
    624
    State:
    Kansas
    This is hilarious.

    A younger generation that does not earn as much as its seniors is now being blamed for consumption failures in a market segment.

    :D
     
  8. Allen Trent
    Offline

    Allen Trent Guru

    Posts:
    488
    Likes Received:
    357
    while you do point out a real issue in terms of earnings, high priced concert tickets, gourmet coffee, craft beers, smart phones, travel & many other items are definitely not suffering from a lack of consumption by this market segment

    Purchasing life insurance must not bring as much focus or fun as these items & many others.

    We're overspending for the love of a 'like'. Here's how to stop.

    our job is to find a way to serve the market as they need our products the most
     
  9. Golfnut2112
    Offline

    Golfnut2112 Guru

    Posts:
    421
    Likes Received:
    92
    State:
    West Virginia
    I completely agree! Why anyone would work the younger market is beyond me. I quit working that market when I was around 30 years old. Crazy hours, stood up way to many times, no real money to be made, and quite frankly I could never understand why someone can’t figure out they need life insurance if they have kids. I would mention it to them once but I sure wouldn’t waste time trying to convince them they need it.
     
    Last edited: Apr 17, 2019
  10. pfg1
    Online

    pfg1 Guru

    Posts:
    1,519
    Likes Received:
    303
    State:
    Virginia
    That can work sometimes, but unfortunately many in this age bracket don't (yet) realize the value of LI. To them its an expense that takes away $ from their lifestyle. Plus with the commercializing of "lowest priced term insurance" or "buy it on the internet for cheap" they are subconsciously trained to want to pay the least amount.
     
    pfg1, Apr 17, 2019
    #10
Loading...