As the Affordable Care Act (ACA) was being talked considered, drawn up and eventually passed, all of the talk was about how this would change the face of health insurance for the country. No doubt it is different and I am not going to give my opinion as to whether it is better or worse…it’s worse…oops! I could not help myself! However, I want to discuss what the ACA has done to LIFE insurance.
As a life insurance wholesaler, I have the opportunity to talk to lots of insurance agents and financial advisors. I also sit on the board of a couple of different insurance organizations so I feel like I have a pretty good idea of what is going on in the “real world” of life insurance sales. From my perspective, the ACA has put a huge dent in the life sales numbers in the last 18 months. In fact, I know of more than one major life insurance carrier whose sales are down over 25%. Why? It’s simple, advisors have been spending so much time educating their clients on the ACA that have not had time to focus on selling life insurance. Many, if not most advisors, sell both health and life insurance. Therefore, it is natural that there is going to be a drop in life sales when there is a need to focus on keeping their health/group business going.
At the same time, I hear that direct to consumer sales of life insurance have been steady, which also makes sense. Responsible consumers know that they need life insurance. They understand that there is a need to protect themselves and their loved ones from the unexpected. Therefore, if their current advisor is not talking to them about life insurance, they can go online and buy it from a multitude of companies who are more than happy to help them. The process is beginning to look like the renewal of your ehic in Europe, this is a good thing since we are very behind on modernizing or methods.
How do we fix the trend of slumping life sales? I think the first step would be to create a plan. This will help you stay on track when things don’t go as planned or when things go better than planned! It should include approaching the clients and small businesses who have been educated on ACA. They are willing purchasers of insurance and would understand the need have protection against the unknown or unexpected. As the saying goes, “plan the work and work the plan!”
Need some other ideas? Let us help you. We have some marketing ideas that can help you get up and running faster than many of our competitors. You just have to ask! Email me at firstname.lastname@example.org and I will help you get started.
Now go sell some LIFE insurance before the government regulates it too!!