How to Sell Life Insurance to Millennials

The millennial generation (in general, those born between 1980 and and 1995) faces a unique set of financial challenges.

The average college student who graduated in 2016 carries more than $37,000 in student loan debt.

They also came of age under the shadow of America’s greatest financial crisis since the Great Depression, which leads many of them to be apprehensive to invest in the stock market.

And many millennials are small business owners—about two times more than the previous generation.

These dynamics create a unique demographic of people who may have a steady income they don’t yet know how to utilize.

This makes a wonderful opportunity for both clients and agents to provide them with life insurance services.

First, it’s good to understand the millennial mindset.

how to sell life insurance to millennials

Different priorities

For some previous generations, starting life meant starting a career at the bottom of a ladder and working there until retirement, finding a spouse early, and having kids in their early 20s.

In general, millennials aren’t following this life formula.

In 2015, the median age for first time marriage in America was 27 for women and 29 for men, compared to about 20 for women and 23 for men in 1970.

Census Marriage info

Image courtesy of United States Census Bureau

The mean age for first children for women in 2014 was 26.3.

And they’re buying homes later and less often.

Of course the housing market is out of millennials’ control, but when and if they start a family is largely a choice they are making.

Because they don’t have dependents or a mortgage, and they do have a mountain of debt, they may not see the need for life insurance.

The first step is to let them know that life insurance is not nearly as expensive as they may assume.

They may not see the value in getting coverage to support a spouse and children they do not yet have.

Three ways to help ease this opposition:

  1. Instill the importance of starting early
  2. Emphasize the relative affordability of life insurance
  3. Contradict misinformation about life insurance

Starting early

Let hesitant millennials know that life insurance doesn’t just cover funeral expenses, but it can help cover so much more, such as lost income, debt, and an inheritance.
And remind them that their rates are lowest if they start their policy young.

For example, a 20-year term policy for $500,000 could be less than $30 a month. Even in the starkest of times, $25-$30 a month can often be put aside.

Personalized policies

Inform potential millennial clients that life insurance policies are very unique to each policy holder. If, for example, they’re thinking they don’t have the same financial needs as their parents (and therefore don’t need a policy) they can absolutely get a different plan.

If they are one of many new millennial entrepreneurs, perhaps they could use a life insurance policy to protect their new company.

Digital services

Millennials expect and need online tools to help them find quotes for policies and an ability to enroll online.

By providing these tools and understanding millennials’ viewpoints, you will be more able to provide a policy that fits their needs.

For more information or to sign up for health and life insurance education, visit our website, LarsonEd.com, or give us a call at 239-344-7510.

naples real estate school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com

How to Attract High Net Worth Clients [VIDEO]

To learn more about LarsonEd’s Florida real estate and Florida insurance courses, visit LarsonEd.com or give us a call at 239-344-7510.

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com

How to Attract High Net Worth Clients–Naples Insurance School

From a logical standpoint, life insurance is one of the best purchases a person can make—it provides financial security for loved ones left behind in the absence of a deceased family member.

This, in turn, provides emotional peace of mind knowing that in the case of the unthinkable, loved ones will be taken care of.

However, many people still deny themselves and their family this security by forgoing a life insurance policy.

Why?

People are uncomfortable (perhaps even afraid of) contemplating their own mortality.

(A host of other reasons also keep people from purchasing life insurance. Read more here.)

Life insurance can be an essential tool in covering end-of-life expenses, yet that’s only a minor part of its benefits, especially if you have a policy that covers lost wages for a deceased wage-earner.

But according to a recent LIMRA study (http://dbhc.com/wp-content/uploads/2017/01/2016-Insurance-Barometer.pdfthe most common reason people get life insurance is to cover the costs associated with a funeral and burial.

Why?

Because this is a concrete inevitability. A funeral and its costs are a guarantee with death—therefore, it’s easier to visualize and use as a rationalization to purchase life insurance.

A higher net worth individual, one who would be able to cover funeral costs out of pocket, may not put a lot of weight into these end-of-life expenses.

There are other factors that drive these consumers to purchase life insurance (for example, in order to leave an inheritance to their children).

how to attract high net worth clients

What keeps a person from buying life insurance?

Your high net worth clients and prospects may consider these benefits and still stay away from life insurance because of the relatively low yields compared to other potential investments.

A high net worth individual has likely amassed their wealth by way of shrewd investing.

Life insurance may seem like an inefficient investment to high net worth individuals.

Another common reason people don’t invest in life insurance is because they have other financial priorities that require their assets.

The takeaway

Insurance agents likely need to spend time educating your clients about the benefits of life insurance products while simultaneously offering solutions that allow your clients to retain financial liquidity.

Premium financing

Let your high net worth clients know about premium financing, which allows them to receive a loan that pays the premiums of the life insurance policy.

The client is then responsible for the interest of that loan out of pocket, but this kind of plan allows them to get their life insurance policy without a substantial impact on their liquid capital.

Premium financing is especially valuable for clients who want to keep their freedom to continue investing in other asset classes.

Premium financing plans aren’t for every consumer, and some may not even qualify for the loan needed, but the knowledge of this kind of tool’s existence is powerful when trying to overcome client apprehensions about life insurance.

Florida insurance school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Brad Larson

Larson Educational Services

13040 Livingston Rd. #12

Naples, FL 34105

info@LarsonEd.com

239-344-7510

www.LarsonEd.com

5 Tips for Insurance Client Retention [VIDEO]

To learn more about LarsonEd’s Florida real estate and Florida insurance courses, visit LarsonEd.com or give us a call at 239-344-7510.

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com

How to Design the Best Life Insurance Products

 

 

Understanding the needs of your clients is the first step to better serving them.

The next step is understanding their fears.

Why did your client choose now to obtain life insurance?

What obstacles stand in the way of them making the decision to get coverage?

What are their desired outcomes from their plan?

The answers to these questions could put you on the road to providing the best service possible for your clients.

 

Income Replacement

In general, when a client is obtaining a new life insurance policy or trying to change their current coverage, you’ll use their current income as the starting point to decide the right amount of coverage for them.

However, there is often a serious disconnect between reality and perception when it comes to client benefits.

For example, according to LIMRA’s 2016 Insurance Barometer Study about 60 percent of life insurance clients see their policy as a potential replacement for lost income when they pass away (see page 20 of the study).

These consumers are often under the impression that their benefits will be paid out in a lump sum upon death.

Thus, they may see a lump sum payment as a deterrent, especially if they have a family that will need payments in regular intervals.

Let these consumers know that most policies can be arranged to pay out at regular intervals, thus quelling your clients’ fears about lost income.

Given the prevalence of the assumption that policies only pay in lump sums, you can attract and keep more clients if you offer options that pay at regular intervals after they’ve passed.

how to design the best life insurance products

Flexibility Over Time

Another deterrent for consumers acquiring a policy is the fear that they will be locked in to the same policy for years, even if their needs change.

Flexibility will win.

A younger family getting coverage might be better served by being over-covered rather than being under-covered, given the possibility that their net worth and income might increase before they reach retirement age. (Plus, they might prefer this option as opposed to coming into your office every 5 years to change their coverage.)

Over-coverage is not a problem as long as you are flexible with your clients and communicate openly.

According to that same LIMRA study, about 30 percent of consumers are interested in changing their policies over time.

By being open about your flexibility, and by offering products that have many possibilities, you are more likely to retain clients.

Remember: you’re trying to provide for these people for the long term—you want clients for life. The more willing you are to meet them in the middle and be open and honest with them, the better served they will be and the more business you’ll attract.

To sign up for LarsonEd insurance courses, visit our website, LarsonEd.com, or give us a call at 239-344-7510.

 

naples real estate school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Brad Larson

Larson Educational Services

13040 Livingston Rd. #12

Naples, FL 34105

info@LarsonEd.com

239-344-7510

LarsonEd.com

 

The Power of Saying ‘No’

If you’re constantly prospecting and adding value to your clients’ lives–in other words, as you ascend to agent superstardom in the real estate or insurance industries–you’ll reach a point where there are more people vying for your services than you can handle. 

This means you’ll have more prospects than time–a great problem to have.

Here’s the thing, though:

your time and energy are both finite.

As your client list expands, so will your options–including your option to say ‘no’ to potential clients.

If you’ve established yourself in your niche market and created a reputation for yourself, odds are good that you have some products that are more expensive than others.

As time goes on, you may want to do away completely with offering lower end products, even if they bring in some revenue. Why? Because the time you’ll save by saying ‘no’ to selling these products and the clients who buy them will become more valuable than the little revenue those products once brought to you.

This discerning eye for efficiency is one of the most important skills to hone as your business grows.

larsoned naples insurance school

To learn more about LarsonEd’s Florida real estate and Florida insurance courses, visit LarsonEd.com or give us a call at 239-344-7510.

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com

Real Estate Education: Online or Live–Naples Real Estate School

Slowly but surely, certain sectors of the economy are moving their business onto the internet. Likewise, education is making the transition online.

That means we’re entering a time when we have the potential to live out our 12-year-old self’s greatest dream:

we can stay in our pajamas and go to school in bed.

This freedom can be especially useful for adults looking to enter an industry like real estate and can’t make it to live classes.

However, before you jump right into online education assuming it’s right for you, you may want to familiarize yourself with how it works and how it’s different from live education.

Real estate education live or online

1. Convenience

Online

There’s no doubt that the convenience of online education is one of its most alluring qualities; it’s difficult to incorporate school of any kind into your already jam-packed schedule.

Online classes can allow you to more easily shoehorn an education into your life.

Or maybe you simply don’t want to spend gas money and travel time commuting to a classroom.

If that’s the case, then online education might be right for you.

Consider this: although online classes seem like a time-saver in the short term, they can be more expensive in the long run if you’re unable to pass the state exam due to the less interactive nature of online education.

Live

If you live close to a real estate education provider, then time and gas money spent traveling might be a non-factor for you.

Perhaps your schedule is more flexible, allowing you to enjoy live education without feeling overwhelmed, in which case it might be better to go to live classes.

 

2. Individual Attention

Online

Although some online classes at a university, for example, will allow video interaction between students and instructors, most real estate schools will not offer such comprehensive online education packages.

Online courses generally consist of videos, images, texts, and quizzes.

 

Live

Live classes, on the other hand, allow you to interact face-to-face with an instructor and fellow students.

Not only is this a more conducive environment for learning, but it also provides an excellent opportunity to network in your new industry.

 

3. Comfort

Online

If you want to, you can take online classes out by the pool.

pool laptop computer

Please don’t leave your computer this close to the pool…

That freedom is a great benefit, for sure. Just keep in mind that without the social pressure of fellow classmates, you may be inclined to succumb to distraction. 

 

Live

Depending on how extraverted you are, being surrounded by people may be more comfortable for you.

As a real estate agent, you’ll need to thrive on social interactions, as you’ll be meeting and connecting with people all the time.

Meeting people at class is as good a time to start as any.

If you’re considering taking online real estate courses because you prefer not to be in a classroom full of people, then perhaps the social nature of real estate doesn’t jibe with your personality.

naples real estate school

We always advise students to take live courses, but if you’re interested in getting your Florida real estate license online, then you can sign up for our classes here: https://www.larsoned.com/realestate/licensing/courses/63-hour-sales-associate-pre-license-course-online/

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com