Boosting Sales and Persistency Through Insurance Bundling: A Winning Strategy for Life Insurance Agents

In the highly competitive world of life insurance, persistency — the ability to retain clients and keep policies active over time — is key to long-term success. One proven strategy to improve persistence while increasing sales is bundling insurance products. By offering clients a combination of complementary coverages like Medicare supplements, Final Expense insurance, long-term care policies, and other products, life insurance agents can create comprehensive solutions that meet a wide array of needs. Here’s how bundling can boost both client satisfaction and your bottom line.

1. Why Bundling Works

Bundling makes sense because it simplifies insurance for clients. Instead of juggling multiple policies from various companies, clients have a one-stop shop for their coverage needs. This approach can increase convenience, which translates into better customer satisfaction and retention. It also strengthens relationships, as agents who can meet diverse needs are seen as trusted advisors rather than just insurance salespeople.

By offering bundles, agents can:

• Increase Coverage: When customers see the value in multiple complementary products, they are more likely to agree to a bundle.
• Build Long-Term Relationships: Clients feel secure knowing they’re fully protected from life’s unexpected events.
• Improve Persistency: Clients with multiple policies tend to stay longer, as switching providers would require disrupting more than one coverage type.

2. Popular Bundling Options

Here are some effective combinations life insurance agents can offer:

Medicare Supplements + Final Expense Insurance

Many clients nearing or in retirement are concerned with the high costs of healthcare and final expenses. Offering Medicare Supplement insurance alongside Final Expense coverage can give clients peace of mind for both health and end-of-life expenses. Medicare Supplements help cover medical costs not covered by Medicare, while Final Expense policies ensure funds are available for funeral and burial costs, easing the financial burden on loved ones.

Life Insurance with a Long-Term Care Rider or Critical Illness Rider

As healthcare costs rise, many clients are worried about the financial impact of long-term care. A traditional long-term care (LTC) policy bundled with life insurance (or a hybrid life insurance policy that includes long-term care benefits) provides clients with a two-in-one solution. If they never need long-term care, their life insurance policy will still pay out. However, if they require extended care, the LTC rider can help pay for it without depleting their savings or leaving their family in financial hardship.

Cancer Policies + Disability Insurance

With the increasing rates of cancer diagnoses, a cancer insurance policy can provide a financial safety net for clients in case of a serious illness. Pairing this with a disability insurance policy can protect against income loss during recovery from any critical illness, injury, or condition, giving your clients confidence that their financial well-being is protected, no matter the diagnosis.

Annuities + Final Expense Insurance

Offering annuities alongside Final Expense insurance can be an appealing package for clients planning for retirement. An annuity provides them with guaranteed income in retirement, while Final Expense insurance ensures their loved ones won’t face significant costs after they pass away. Together, these policies can help clients secure both their financial future and their legacy.

3. The Benefits of Bundling for Agents

While bundling offers clear benefits for clients, it’s also a powerful strategy for agents. Here’s how bundling can help you grow your business:

Higher Sales Per Client

When you bundle products, you’re more likely to sell multiple policies at once. This increases your average sale per client, enhancing your income without requiring additional leads. Cross-selling becomes more accessible as well since you’re already engaging clients on the various aspects of their financial security.

Improved Client Retention

Clients with multiple policies tend to be more loyal as switching insurers becomes more cumbersome. If they leave, they risk losing numerous benefits, making it less attractive to seek out new coverage elsewhere. This increases your persistence, keeping your book of business stable over time.

Differentiation from Competitors

Many agents only focus on selling single policies, such as life insurance or Medicare supplements. By offering a range of bundled products, you set yourself apart from competitors. Clients will view you as a comprehensive solution provider rather than just another insurance agent.

Strengthened Client Relationships

As you work with clients to address their various insurance needs, you’ll build stronger, more personal relationships. You become a trusted advisor, which not only leads to more sales but also generates referrals as clients recommend you to their friends and family.

4. Closing Thoughts

Bundling insurance products offers life insurance agents a unique opportunity to provide more comprehensive coverage, strengthen client relationships, and improve persistence. By strategically combining policies like Medicare supplements, Final Expense insurance, long-term care, and more, you can help clients protect their financial futures while growing your business. In today’s market, the agents who can offer the most value will be the ones who succeed, and bundling is a powerful way to provide that value.

Take action now and start exploring how you can bundle insurance products to provide your clients with the ultimate peace of mind — and grow your business in the process!

Finally…We understand the challenges you face in meeting your clients’ needs, and we want you to know that we’re here to support you every step of the way. Whether you need help finding the right solutions or just a fresh perspective, we’re ready to go to work for you. Give us a call, and together, we’ll ensure your clients get the best possible coverage and care.”Bottom of Form

Happy Selling, Jeff Snowden