This past March saw historic rainfall here in New England. Roads were closed, basements were flooded and many hours were spent pumping and vacuuming out water. Many of us wished that we had installed a sump pump or at least made it to Home Depot before they sold out of wet vacs. While the rain this spring was historic, it struck me that this wait-and-see human behavior is typical in many areas of life.
Just look at what has happened in the life insurance business lately. Clients have been sitting on their hands, fences, and other proverbial procrastination posts, as evidenced by the precipitous sales declines in universal and variable universal life coverage in 2009.
In this uncertain economic environment, it's easy to understand their hesitation. When you're being tossed around, the natural response is to hold on tight. 
But just as folks regret not installing a sump pump before a rainstorm hits, they'll wish they had bought life insurance in 2010. Although the massive stimulus bill has dispersed the clouds of the last big economic storm, there's always another one brewing, whether in the form of national policy changes or an unforeseen personal crisis. By building your clients a sound insurance lifeboat, you'll prepare them to weather the next storm–and position yourself for a full pipeline of sales.
Opportunities To Think About Now
Saying "the time to buy is now" may sound like trite salesmanship, but it's the truth. Consider a few realities:
? The ballooning federal deficit will require significant tax increases to pay down.
? Your best clients will be the target of these increases.
? Although it has yet to be defined, there will be an estate tax, and likely a significant one.
? The tax characteristics of life insurance today are as favorable as ever.
? Because permanent life insurance is so favorable, the federal government could target it for revenue generation.
Once your clients understand these facts, they may be more inclined to start writing premium checks. Let's consider a few strategies you can use to inspire the fence-sitters to action.
? Term life–With life insurance, the easy and inexpensive option has always been term life. But term life is often sold as a stand-alone solution, without a game plan for conversion to more comprehensive coverage. For clients who have long-term needs but short-term cash concerns, selling term with a time frame for conversion can help you position them for the coverage they'll need down the road.
