It is abundantly clear that the Career/Captive Distribution Model is being phased out of the Life Insurance Industry. Although a very high percentage of today’s elite life producers are independent entrepreneurs, we need to recognize that a significant portion of this demographic are agents who began their careers working for captive companies. The benefits of the brokerage market are obvious to all independent agents, but in a peculiar way, the former captive agents might have some advantages because of the training they received from career companies.
How does today’s agent distinguish himself from the competition by accurately determining his client’s insurance needs, rather than simply replacing a current policy? Where does today’s producer turn to provide an important client with an insightful, professional analysis of their estate planning issues? Former career agents may still have some outdated tools that their employers provided years ago, while some of the top producers in the industry might have access to resources provided by organizations such as the Million Dollar Roundtable. Still, the reality is that most independent life producers are lacking some valuable needs analysis tools – tools which ABS is happy to provide.
In this seventh issue of “The Cutting Edge,” I’d like to call your attention to some useful financial calculators offered on our website, www.absgo.com. In particular, I want to highlight the links to our website that can be found under the “Tools of the Trade” Heading in this newsletter: the Life Needs Analysis Calculator, the Human Life Value Calculator.
Life Needs Analysis and Human Life Value are both financial calculators designed to help estimate how much life insurance coverage your client needs. When you click on either of these links, you will be directed to an article page with a screenshot of the calculator as it appears on our website. Just click the link at the bottom of this page to use the calculator. You will be asked to input certain dollar values for various expenses that your client’s life insurance policy should cover. The Life Needs Analysis calculator focuses more on immediate needs of the policy’s beneficiary, such as final expenses and funeral costs, outstanding loans, and income replacement. On the other hand, the Human Life Value calculator takes a more long-term approach to needs analysis, focusing on value replacement in addition to final expenses. Once the required values are entered, each calculator will estimate the face amount of the insurance policy that your client requires.
Many clients underestimate the amount of life insurance coverage they need; likewise, many agents end up underselling their clients. Using tools like the Life Needs Analysis and Human Life Value Calculators will ensure both that your client is properly insured and that you are making the best sale possible.
Whether you access these features through “The Cutting Edge,” or directly at www.absgo.com, please use the tools we provide to increase your sales and grow your business with ABS!
