February 27th, 2020
We’ve all been there. You’re chatting with someone for the first time, and then they ask the question, “So, what is it you do for a living”. You answer that you’re an insurance agent, and the band of crickets starts up a number. The phrase, “insurance agent” has got some baggage, but that shouldn’t overshadow all the reasons why having an agent is the smart play. Here are six reasons you can give potential clients the next time they raise concerns about getting an agent.
Annuity Marketing Manager
1. Agents Lend Their Expertise
The average person isn’t an expert on navigating the different features & benefits available under each coverage option. What about the deductibles?
As a result, most customers are going to struggle comparing products side by side. That’s where your expertise becomes an asset. A talented agent takes the time to learn both what the customer wants and needs. They weigh all options before making a recommendation, all the while explaining the costs and benefits. It’s important that clients understand they are receiving a reasoned recommendation.
2. Extra Vigilance in Competitive Insurance Markets
Any agent worth their commission takes the time to keep tabs on their clients’ coverage. The competition in the market is intense; polices have been known to come and go. Periodically reviewing your clients’ coverage, especially if you sell for multiple carriers, means you’ll be in the unique position to inform your clients about any money-saving changes that might be available.
3. The Good, The Bad, & The Inexpensive
Here’s an example of a common mistake made when purchasing insurance; Pat’s young and healthy, so getting life insurance is cheap and easy, especially since their employer offers it. A few years later and Pat’s changed their job, so a new policy is a requirement, but now it’s more expensive. Pat never talks to an agent and ends up repeating this cycle. Eventually, age and health concerns leave Pat
stuck with either an expensive policy or outright denied coverage. An insurance agent could have set Pat up with a policy for life, so a lack of coverage never became a reality. Insurance is, by its nature, all about foresight and I’d argue that having a knowledgeable agent in your corner is the first step towards the bright future of secure finances.
4. An Agent Can Monitor Financial Health
I have a theory that, subconsciously, many people think about retirement planning in the same way they think about their annual doctor’s office visit. They know they should get around to it, but they’re also worried about finding a problem. Especially since they know it will cost something. Just like with our health, preventative medicine is the best medicine for financial health. A vigilant agent helps their clients diagnose any issues as soon as they arise. Clients need to know when to act fast in order to prevent larger problems later in life.
5. Life Changes Mean Changes To Insurance Needs
Every day is new, and as life changes so do a person’s needs. As agents, it’s important to know about our clients’ life events. A recent graduate might purchase a small life insurance policy. A couple years pass, and now they’ve established themselves in their career field, so they decide to buy a house. They’re finally feeling secure enough to start a family. Before they know it, the kids are in school and growing up. A good agent watches for clients who are going through major life changes. As life exposes clients to new risks, new coverage might be desirable.
6. Clients Need their Interests Protected
Figuring out the main reason people buy insurance isn’t rocket science. People know that there will always be risks in life, and some are far more likely than others. Policies are designed to financially protect individuals against the risks they face every day. If something happens and the policy owner needs to make a claim, or if a problem arises, they can contact their agent to act as an intermediary to their insurance company. There’s a sizable portion of people who recognize the need for insurance, but don’t feel competent representing themselves when dealing with large companies.
The bottom line is that agents are here to help clients achieve their goals. Agents should stay in touch with their customers and help them with any change life brings. But, ultimately, it’s our job to provide our best possible guidance.