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,, or give us a call at 239-344-7510.


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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



5 Tips for Health Insurance Client Retention–Part 1

Health insurance client retention

When too many of your clients are cancelling their health insurance policies, you start to feel the impact at all levels of your business—lost clients could increase administrative costs and you could also see issues with debt management if you’ve already budgeted certain commissions that are no longer coming in.

And acquiring new clients is not cheap.

Here are 5 tips to make sure you choose clients who will stick around:

1. Pre-Qualify

The road to client retention starts before your relationship with a client even begins. First, you want to discover if you and a particular prospect are a good fit for each other.

In all industries, the best salespeople ask the right questions. 

You may also benefit from a shift in thinking: rather than focusing on acquiring clients, think about it in terms of finding out if a prospect is a good business partner. Ask yourself, “Is she a good fit for the services I offer?”

You must be willing to say no to certain clients if you think you cannot provide them with the services they need. Or you may say no if you foresee this prospective client requires a larger investment of time than you can afford.

The same insurance product won’t fit every potential client. Determine their budget.

If, for example, you run into a prospect who qualifies for high subsidies, it will be important for them to know the value of supplemental products, though they may not have the budget for these voluntary products.

Work together with them to find the best potential options to fill in the gaps created by high-deductible ACA plans, for example.

2. Find Your Niche

You will need to project professionalism and trustability to potential clients. If they have any qualms whatsoever about your ability to serve their health insurance needs, assure them that you specialize in this field—you are the content expert. 

Oftentimes, you can put an apprehensive prospect’s worries to rest by letting them know what others in their situation are purchasing. Decisions of any kind are difficult, let alone when healthcare is involved.

Make the decision easier by providing them with a road map of previous clients’ experiences.

The language you use may sound like this:

“This is our most common package.”

“Many of our clients are happy with this package, and here’s why.”

“This is our most popular package.”

Again, you don’t want to sell them something they can’t afford—sure, you won’t be able to retain them as a client, but more importantly their needs won’t be met.

Click here to read part 2!

naples real estate school

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida 34105