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.

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. 

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. 

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

1400 Colonial Blvd. #44,

Fort Myers, Florida

33907

239-344-7510

LarsonEd.com

How to Attract High Net Worth Clients--Fort Myers 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.pdf) the 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).

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.

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

1400 Colonial Blvd. #44

Fort Myers, Florida

33907

info@LarsonEd.com

239-344-7510

www.LarsonEd.com

LarsonEd is Now a Florida Insurance School! [VIDEO]

Family-owned and operated Larson Educational Services has had its doors open in Fort Myers since November 2008. We at LarsonEd are excited that for the first time in our company's 8-year history we are offering health insurance education. This is in addition to our already established courses in mortgage, CAM, and real estate.

As a professional education business, we are always looking toward the future for possible trends and opportunities. We feel that there will be a steady, continued growth in the health and life insurance industry in Florida. Now is a good time for us to bring our high standards and exam preparation expertise to this growing field. It also allows us to diversify our course offerings and give additional career options to our current and future students.

In our classes, you'll learn about the Florida Health & Life licensing requirements, responsibilities, liabilities, and standards of conduct. We also include, at no additional charge, all the EXAM PREPARATION you need to pass your exams.

Comprised of 12 modular units covering the basic principles and business fundamentals of insurance, our experts will prepare you not only for success on exam day, but will help you get off to a fast start once you have received your license. Because our course has a modular format, you can mix-and-match dates and locations if you need flexible scheduling. Just call us at 239-344-7510 and we'll help you put a schedule together.

You can't find that flexibility at any other insurance school in southwest Florida! Plus your tuition payment is good for one year! You can attend the course again to review for no additional charge.

We accept registrations all the way up to the course start time.

Tuition: $339

Includes:

• 1-year enrollment period to complete or review the course
• Our exclusive student workbook
• Our Health & Life Exam Preparation. No separate class needed!
• Tuition DOES NOT include the State Manual. State manuals can be purchased online here http://naifa-florida.org/study-manual-30th-edition/

To sign up for the 60 hour Health & Life Agent Pre-Licensing course, click here: https://www.larsoned.com/insurance/licensing/pre-licensin...

To sell annuity contracts, variable contracts, health insurance or life insurance in Florida, a person must have a license from the Florida Department of Financial Services (DFS). Before obtaining a license, a person is required to attend a pre-licensing course, pass the state exam and submit an application.

We at Larson Educational Services, a Florida insurance school with classes in Fort Myers and Naples, will guide you through the process of getting the following Florida Insurance Licenses:

Life and Health (2-15 Agent),
Health Only (2-40 Agent) or
Life Only (2-14 Agent)

Larson Educational Services
1400 Colonial Blvd. #44,

Fort Myers, Florida

33907

239-344-7510

5 Tips for Health Insurance Client Retention--Part 1

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.

Read part 2 here. 

Larson Educational Services

1400 Colonial Blvd. #44

Fort Myers, Florida

33907

239-344-7510

LarsonEd.com