Purchasing Life Insurance at the Age of 23?

Life insurance is an important topic to understand, especially as you mature and get older. First, what is life insurance? Life insurance is a contract between a policy holder (you) and an insurer. The policy holder pays an insurer a premium, usually monthly in exchange for a premium when that unforeseen event (death, illness etc) occurs. Contracts do vary so the language and processes can vary from time to time.

your_life_insurance_policyAn article from newyorklife.com highlights why someone would purchase life insurance at the age of 23. Through asking a colleague, this 23 year old individual learned that because her colleague Bill’s father purchased life insurance at a young age, it allowed Bill to help get through and pay off college debt. Bill also disclosed that life insurance is not just beneficial to an individual who has died, there are benefits to it while you’re alive. Living benefits are benefits available to you while you’re still alive. You can use these benefits for anticipated as well as unanticipated life events. If you have a permanent life insurance policy, you can use these funds for things like purchasing a home, education bills, or even a wedding. Bill has not only used some of his funds to help pay for his school expenses but he’s also prepared to again use those funds to help for his wedding which he is now having at the age of 34, 11 years after he purchased his policy.

It’s very much okay to have your doubts about purchasing a policy at such a young age. It’s encouraged that you sit down with an insurer and maybe even a family member who has a policy. Ask questions, find out when they purchased theirs. Maybe even find out why they didn’t purchase one, they may have had different circumstances from you.

from Lloyd Life http://ift.tt/1VzJgig Sabrina Lloyd’s latest post!


Why Your Sales Reps Can’t Close

If your sales reps are failing at closing deals for life insurance or whichever service/product your company provides, the failure to close is not the problem. Rather, it is a symptom of a problem. The problem is most likely that sales reps are neglecting important activities in the earlier stages of the sales process. It is important to find and address the broken links in the system to prevent continuous struggle for your sales reps.


Finding the real problem

It is typical that sales reps do not make enough time to prepare for meetings. Preparing for meetings means planning agendas, conducting enough research, even checking the client’s’ LinkedIn or public profiles to find common interests or similarities to properly tailor the pitch.

Other common potential problems include:

  • The initial prospects were unqualified and/or uninformed about the purpose of the meeting or why they should be interested in your service/product.
  • The salesperson did not pique the interest of the client.
  • The salesperson left without planning the next step: either scheduling another call or getting an agreement.
  • The follow-up consisted of a series of emails that promoted products and did not address the client’s unique concerns or needs. (The follow-up had no call to action or a call to action that did not match the desire of the client).
  • The sales rep had no idea why his emails received silence.


Start at the source

If your team is having trouble closing, analyze the sales process from the beginning. Examine the entire process for missing links. The following are a good set of questions to ask:

  • How are sales reps getting leads?
  • How are these leads qualified?
  • Are salespeople asking the right questions to identify prospects’ problems/needs and composing thoughtful solutions?
  • Do sales reps demonstrate product features or do they talk ROI?
  • What is the plan for the follow up?

Rather than training your sales team on closing techniques, it is more worth your time and money to supply a healthy, working sales process.


The ROI of referrals

It is more often than not that the problem exists in the method. Hot leads should be the only leads in the pipeline. These leads usually come from referrals or trusted allies. Prospecting through referrals has the following benefits:

  • You bypass the gatekeeper and score meetings with decision-makers.
  • Your prospects are pre-sold on your ability to deliver.
  • You’ve already earned trust and credibility with your prospects.
  • You convert prospects into clients at least 50% of the time, usually more.
  • You land clients who become ideal referral sources for new business.
  • You score more new clients from fewer leads.
  • You get the inside track on your prospects instead of allowing them to be picked up by competition.


Ditch the canned pitch

If you are finding your sales team in front of the right prospects after finding qualified leads and they still can’t close the deal, they are most likely not engaging in insightful discussion or asking the right questions. Thoughtful and provocative questioning has a huge impact on close rates and sales revenues. By probing leads with provocative and insightful questions, not only do they engage prospective clients and increase the likeliness that they will become clients, but it also provides more information about client needs and thus ways to improve the services offered.

from Lloyd Life http://ift.tt/1Uxgx81 Sabrina Lloyd’s latest post!

3 Places to Find Money for Life Insurance

Where is one going to find money for life insurance? Great question! For those in the life insurance industry like Lloyd Agencies, it can actually benefit both you and your client to help your client find the money for their life insurance plan.

Life insurance is not utilized as much as it should be, according to LifeHealthPro. Most clients think they don’t have enough money to pay the premiums. However, there are three sources of funds that most clients have but do not tap into.

1: IRAs and other retirement plans

IRAs are loaded with taxes. That money is better used to fund either Roth IRAs as Roth conversions or life insurance. Both options can transfer taxable funds to tax-free territory, permanently.

The leverage is better for life insurance than Roth IRAs. IRA funds grow tax-deferred, meaning that money will be subject to tax in the future, probably at a higher future tax rate on a higher IRA balance.

For a client that wants tax-free retirement funds and better control over future distributions, life insurance is a better panning strategy- especially if the IRA funds won’t be needed during life and the client wants to pass those funds to beneficiaries.

Life insurance is also a tax-efficient and reliable estate planning move because the stretch IRA might be eliminated. A good option is to take down IRA funds, pay the tax now, on a lower balance at a likely lower rate and then use the remaining funds (after taxes) to fund life insurance. That way, the family will end up with more tax free money. Optimum time for individuals to use this strategy of acquiring reasonably priced life insurance is when individuals are in their 60’s, there no longer a 10% early withdrawal penalty and before required minimum distributions begin.

2: Taxable investments and savings accounts

Taxable investments such as bank and savings accounts, funds and stocks can be leveraged for life insurance. Bank accounts that are earning virtually no interest are the best funds to use first, unless they exist for a reason. Otherwise these types of funds do nothing and earn nothing. Unlike IRA funds, they can be withdrawn without a tax bill. Life insurance can dramatically increase the value of assets.

Mutual funds may fall into the same category as savings accounts except there may be a need to keep some specific funds classes for asset diversification. Be careful with stocks. Before liquidating any stocks to free up cash for life insurance, you BETTER know the basis of these stocks. If they are highly appreciated (low tax basis), they should be help until death so heirs can get the step-up in basis. Look to sell the losers. This will create a tax loss that can offset other capital gains and free up funds for life insurance. Selling high basis assets or chronic non-performers are also great sources of funds. If you let go of your assets, you can make better use of the proceeds.

3: Dead assets

Dead assets can include stock that great grandma passed down decades ago. If these assets are not highly appreciated and are only held for emotional reasons, they might be better used for life insurance. Hard assets like real estate or personal property fit into this category as well. It is likely that the following generation will not have as strong emotional ties to these assets and sell them anyway.

Non-performing and tax-inefficient assets are bogging down clients and can be better spent on life insurance with a lower tax bill.

from Lloyd Life http://ift.tt/1IXcB0f Sabrina Lloyd’s latest post!