Kevin Kimbrough is a principal and head of national sales at Saybrus Partners, whose team of insurance experts offer consulting services to financial-services and wealth-management firms. It is a subsidiary of the Phoenix Cos., a boutique life insurance and annuity company.
Why should a P&C agent consider selling Life insurance?
Many opportunities exist for P&C agents to add Life insurance to their product offerings. Clients of P&C agents already view them as trustworthy and credible, so becoming their Life-insurance agent as well can be as simple as opening the conversation. Also, the security and convenience of having one source for all their insurance needs is attractive to many clients.
Nearly a third of all consumers believe they need more Life insurance—but awareness of need doesn't necessarily mean people are buying. Many postpone taking action because they have unanswered questions or don't fully understand what they need. P&C agents can provide value by helping to identify needs and providing this information throughout the buying process.
What's the biggest barrier for P&C agents selling Life policies?
One simple reason why P&C agents and brokers aren't cross-selling Life insurance is that, like most professionals, they are busy with their practices. Servicing existing clients is time-consuming, and they will naturally focus on their core area of expertise. It's also challenging to become proficient in another product line, particularly one as dynamic as Life insurance.
Over the past several years, the Life insurance marketplace has changed dramatically. For example, there are combination products that weren't commonly available just a few years ago that provide new and expanded features, such as Long-Term Care and Longevity riders. As the products have developed, so have their potential uses, from income replacement to wealth transfer. Keeping up with these changes can seem a daunting task.
What niche markets exist for P&C agents offering Life insurance?
Many P&C agents already offer Term and Permanent Life insurance policies to help their clients meet easily defined needs, such as income replacement. That said, further opportunities exist for affluent and high-net-worth clients. Life insurance needs for this demographic, which includes successful business owners, wealthy families and high-income earners, often encompass supplemental retirement planning, creating a legacy and the tax-efficient transfer of assets to the next generation.
How can a P&C agent tap into this market?
The best route for P&C agents to incorporate Life insurance into their businesses is to talk about it with existing clients, who they know best. P&C agents often know when their clients reach important milestones, such as getting married, buying a home or becoming parents, because these events trigger the need for new P&C coverage or changes to existing policies. Such life changes, particularly those involving family, are also powerful triggers for buying Life insurance.
While purchasing Life insurance is practical, it's also an emotional decision driven by the desire to protect loved ones. P&C agents can take those opportunities to begin a Life insurance discussion.
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