4 opportunities for life insurance agents in 2014

While life insurance premiums are trending upward, according to LIMRA, policy counts continue to remain essentially flat, with the number of applications declining. Even with added technological efficiencies, simplified underwriting, fewer medical hurdles and lower premiums, life insurance sales are barely holding their own, even when taking into account the unrelenting sales of indexed universal life products.

To the average industry outsider, it may seem that life insurance has fallen behind, with other branches of the financial services industry superseding it. At times, it seems that this is a view shared by some life insurance producers.

While such a picture is certainly a reality check, it's only part of the story. For those who believe in life insurance, who see what having the right policies can do for clients, this is a remarkable business. But more than a firm belief in the product is needed if our industry is to move the needle forward. More than ever, producers can benefit from an opportunity strategy that assists them in focusing their energy in the right places.

With so much energy and interest directed to now-aging Baby Boomers, the Generation X and Y markets seem like a sidebar to the main story. As many life agents know, these consumers can be challenging and difficult to reach.

The place to begin is by abandoning the life insurance sales approach that's deeply ingrained in every life insurance agent; namely, that "life insurance is sold, not bought." These two cohorts don't want to be "sold" anything and run from all such attempts.

A formula for success in marketing to these segments might go like this: These highly technological-dependent consumers want what they want when they want it – and that means right now. Taking time to meet with a life insurance agent, filling out a multipage application, answering medical questions and scheduling a physical exam are not options. Forget it – it may not happen.

More and more, they're online buyers – including auto, home and life insurance – and they want it done fast. Life companies have figured this out and are getting term life online marketing right with simplified products: No medical exams, three or four medical questions, quick decisions, low prices and coverage pushing $1 million for those willing to pay extra when bypassing a medical exam.

What has this to do with "shoes on the ground" independent life agents? A lot. The market is huge, with roughly 122 million consumers in the X and Y generations. The question is how to go about approaching them.

Generation X has a strong sense of family life, a need to research before buying, a somewhat cynical attitude, and they look for honesty, transparency and guarantees.

Because many are in higher-income brackets, they are prime prospects for advisors who are patient and help them understand term life for meeting a temporary need and whole life as a permanent solution for a permanent need. Plus, permanent life's place in a portfolio of assets that can be a cash resource to help meet various needs such as tuition and additional retirement income. By using an internal rate of return analysis, clients can learn how life insurance measures up with other asset classes.

Generation Y expresses a distrust of traditional advertising and seeks out peer opinions, does things in groups, and "lives for today." While some advisors may not view them as current prospects for life insurance, they're tomorrow's customers and, as such, deserve attention.

One way to begin is by tailoring website content to recognize their concerns and expectations, including an agent's blog that offers helpful information, a term life quote engine and testimonials from peer clients. Make it clear that information and education is your goal and that you encourage dialogue and questions. Also, take social media seriously, particularly LinkedIn, Twitter and Facebook.