Insurance and financial advisors need to be aware that carriers are investing in wellness apps and reward programs to help engage policyholders. This can be leveraged as an added value when an advisor is quoting a carrier’s life insurance product. One of the most challenging issues in insurance is the transient nature of carriers’ relationships with policyholders. Traditionally, coverage is bought out of necessity and then forgotten about unless – or until – a payout is required.

Humanity can survive anything. We’ve seen our economy sink and soar, our communities fight against disease, and despite the circumstances, find hope to carry on—not only carry on but thrive enough to build the world as we experience it today. Our families experienced The Great Depression, and you may have witnessed firsthand the impact of the 2008 financial crisis. While you may be experiencing the full effect of the fear-based language around an unavoidable recession from the news or family and friends, you know you’ll make it through.

The essence of this blog is a result of me interviewing NAIFA chapter presidents and program chairs coast to coast and asking the following questions:

Many webinars and courses for financial advisors regularly talk about how to attract new clients. And while this is logical, it made me think: Instead of looking for new clients, why don't financial advisors create meaningful relationships with their HNW client's adult children? So, when their parents retire, they choose to keep them as advisors instead of finding someone new.

But you'll be surprised to know the statistics regarding advisors doing this. I've been polling advisors, and I hear 15-20% when I ask them how many of their HNW clients' adult children they have a meaningful relationship with.

For the past few years, pundits have been predicting that bots, robo-advisors, and other technologies will lead to the demise of living, breathing financial professionals. That hasn’t happened yet, and, in my opinion, it never will. Yes, people can conduct much of their preliminary research online, and a few are willing to purchase basic coverage without ever speaking to a person. But most will want a financial professional to guide them through life’s twists and turns. Even those people who purchase coverage from a robo-advisor will seek the expertise of a financial professional as their needs become more complex. 

In viewing the New Year already one month old, we as members of NAIFA have a number of areas of ethical focus as we begin to engage 2022. I thought a good beginning in reviewing these would be to take a brief review of the obligations of our NAIFA Code of Ethics for the new year, and how we have engaged these obligations. We’ll begin at the beginning with the first obligation.  

1) To help maintain my clients’ confidence and protect their right to privacy. 

At first reading, this may seem to be a small obligation, until we realize this means not to discuss our clients’ private financial matters, even among associates, unless done so in confidence. Like several other obligations, this seems to be a small matter, but it really isn’t.

A successful agent in the insurance business has built their business by making and keeping promises to their clients, staff, family, and themselves. However, an individual may decide to retire, their situation may change, or something else may arise that makes it necessary to cut back or stop their activity in the insurance business.

Finding ways to keep those promises means you need a good game plan for succession. There is far more to be considered than a simple financial transaction. Relationships must be transitioned and maintained. Let's examine a few items to consider as you build your game plan.

From the 1980s through the early 2000s, many advisors and brokers dreamed of having more help with critical yet time-consuming tasks like proof of insurance and minor claims processing. We mused, “If only I had help with those tasks, I could spend more time focusing on high-touch customer service and sales.”

Today, digital innovations are streamlining much of the way carriers and their representatives conduct and generate business. These innovations are precisely the help we wished for.

So why do many in our industry resist digital advances like customer self-service and apps?

If you missed this year’s Advanced Practice Center Impact Week, don’t worry! We have everything you need to know on-demand. Check out our 10, one-hour sessions with industry experts, including: 

• Kathleen W. Bilderback on the effect of low-interest rates on acquisitions, third-party sales, management buy-outs, and family business succession 
• Stacey McMahan on comprehensive succession and exit planning 
• Scott McHenry and Andrew Rinn on the role of life insurance in a qualified retirement plan 
• Diane Boyle on NAIFA advocacy and topics of interest to NAIFA members 
• Howard Sharfman on ideas to grow your business at each stage of your career 
• Robert B. Wellendorf on life insurance in the business marketplace 
• Frank W. Seneco and R. Wesley Sierk on PPLIs and CICs 
• Steven J. Beatty on why business owners need life insurance 
• Daniel M. Zugell on trends and opportunities for the modern ESOP 
• Joel Solomon on the importance of consistency in your practice 

Selling Life Insurance using a digital platform on your website for consumer direct insurance tools is now the hottest trend! Now more than ever, consumers want to shop, compare, and apply for coverage online and on their terms. The goal is to make the experience of protecting loved ones with life insurance as simple and stress-free as possible. Here are some key reasons why digital life insurance sales has gained momentum: COVID requiring remote sales; 72 million Millennials (25–40-year olds) who would rather shop on their own; massive use of mobile devices averaging 3.8 hours per day; and social media usage 2.5 hours per day for adults in the USA.