Are you being the best agent that you can be?—and by that I don’t mean having the most sales or the strongest team. I mean, are you providing your customers with good advice; explaining their benefits and policy options clearly and in a way that they understand? According to a recent survey, only about half of current owners of life insurance are happy with the advice they received from an agent who sold them a policy, LifeHealthPro.com reports.
The Deloitte Research survey looked at 1,071 U.S.-based life insurance policyholders and 1,000 individuals without life insurance in June 2011. The survey found that in learning about life insurance benefits, coverage needs, option and costs among current buyers, most satisfied reviewing their employee benefits package (67%), followed by speaking with an insurance agent (59%) and reviewing information packages from an insurance agent. Satisfaction levels were lower among those speaking with a financial planner (44%) and those either speaking with a bank representative or reviewing information packages received from a bank (36%).
When speaking with a client, it’s important to simplify what you’re trying to say—not because your client is not intelligent; it’s because it’s easier to understand when it’s in simple terms and not in confusing industry jargon. If you give a client a clear understanding of what they are buying and how it can benefit them—along with all the fine lines, and terms and conditions—you build trust and create repeat customers that will refer their friends to you.
In addition, the survey also found some other interesting points:
Among current policyholders who had received solicitations, two-thirds (67%) came directly from life insurers, with other sources, including agents (37%) and banks (30%), trailing behind. Twenty-six percent also reported receiving cross-selling offer from their auto insurers.
Furthermore, only about one-third of current buyers strongly agreed (14%) or agreed (21%) that they bought life insurance because of advice from a family member, friend or business associate. A similar percentage said they purchased it because of a recommendation of an insurance agent. Thirty-seven percent noted they were impressed by the brand name, reputation and/or rating of the insurer.
When current holders of life insurance were asked about factors that had influenced their last purchase decision, more than 8 in 10 (84%) either strongly agreed (35%) or agreed (49%) that they bought a life policy because the price was affordable, LifeHealthPro.com reports.