A recognized industry sage and curmudgeon (founder and father) often reminded me that a distinction exists between “need to have” and “nice to have,” typically when solicited for largesse for either my personal material gain or desire to be heralded by way of the transitive property of benevolent credit assumption (if a gives to c through b, then b is really responsible and deserves all the credit). Once pidgin algebra and left-leaning economics are cast aside, Dad’s theorem rings true and I’m struck by the relevance to our industry and the communication between advisor and prospect. Even as immersed as I am in the belief of the true benefits insurance products bring to the purchasers, I can still waver between “need” and “nice” regarding both business and personal insurance protection decisions.
I would project that this debate between “need” and “nice” occurs daily in homes, board rooms and cafeterias throughout America when faced with insurance buying decisions, and has for decades, not just post 2008. Owners and benefits managers weighing employee retention issues; employees contemplating salary redirections; families weighing lifestyle risks. What is the extent of the ethical role of the advisor? And where is the balance point between prudence and responsibility, suggestion and insistence, resignation and persistence?
LIMRA reported in their Facts About Life 2013 that 30 percent of American families have no life insurance at all; only 44 percent have individual life insurance; and the average amount of coverage for adults has declined to $167,000, down $30,000 from the average coverage in 2004. The disability income insurance and long term care insurance pictures are even more serious. In Facts From LIMRA 2014 Disability Awareness Month, it is reported that less than one-third of working Americans have disability insurance. The American Association for Long Term Care Insurance estimated in 2009 that just over 8 million people owned long term care insurance either on an individual basis or through employer-offered protection. With the average purchase age estimated at 59, this isn’t quite as alarming as it may look on the surface, but is still dire.
The first question to mull is: How can we as an industry shift consumer attitudes regarding insurance products further toward “need to have”? Great resources are available from the Life Happens folks at www.lifehappens.org, as well as the Council for Disability Awareness, www.disabilitycanhappen.org. Many industry associations have materials available, including our friends at NAIFA, www.naifa.org, NAILBA, www.nailba.org, and IDIS, www.internationaldisociety.com. Many carriers have a wealth of materials available both publicly and for agents licensed with them. But you will have to commit to a diligent and well thought out plan of action. I welcome any comments or suggestions.
As an aside, it is my opinion that anyone enjoying the benefits of a career in insurance has a two-fold obligation to join the industry associations that serve their field—first, to yourself, to stay informed and continue to refine your ability to serve your clients; and second, a moral obligation to give back to the profession and the industry that has given to you.
Similarly, the second and more personal question is: How will you shift your attitude about products you’ve found to be more difficult to sell, or less profitable, from “nice to be able to” to “need to be able to”? [SPH]
It is my privilege to announce the (long overdue, I am reminded) promotion of Hope Howard to the position of vice president and business manager of Insurance Publications, Inc., publishers of Broker World. Hope officially joined the company in August of 2008 and started full time on April 1, 2010, a date that no doubt spurs piquant reflection on her part from time to time. Previously she served as marketing coordinator, a title sufficiently vague to allow an ever-increasing load of the less desirable tasks to accumulate on her capable shoulders. As many of the carrier and BGA friends we see on the road will attest, she is a great relationship builder and asset to the company.
Prior to joining Broker World, Hope was operations manager for the National Association of Insurance Marketers (NAIM), a marketing group for life and health insurance brokerage general agencies. [SPH]
