The 5 biggest challenges agents are facing now (and how to overcome them)

3. Health care reform (35.29%)

The beast that reared its head in early 2010 with the signing of the Patient Protection and Affordable Care Act shows few signs of quieting five years later. More than a year after the act was formally rolled out, consumers still have questions about their coverage options, fears over losing favored provider access and doubts that they can afford the level of coverage they need.

And that's just on the consumer side. Advisors, too, must now navigate a maze of ever-changing regulation in order to sell a product that once was a whole lot simpler. To supplement sales, some agents are turning to ancillary product lines like critical illness insurance — which, incidentally, is good timing for consumers looking to fill coverage gaps. With ten thousand boomers retiring each day, others are finding the Medicare market an underserved niche, as a number of our survey respondents noted in a question asking for their success stories. These findings suggest that specialization within a product line still pays dividends.

4. Industry legislation (20.0%)

It's been a busy few days in Washington, as anyone following the ongoing debate over the DOL fiduciary standard will tell you. This piece of legislation — still in its drafting stage — is just one of the regulatory items awaiting resolution, effectively creating a waiting game for advisors. When resolution will actually come is anyone's guess, but the prospect of tighter industry regulation in coming years seems certain. And it's one certainty that leaves uncertainty in its wake. It's difficult to play when you don't know the rules of the game.

Your clients may not face the same oversight concerns, but they are none too pleased with the current state of government themselves. When asked about the biggest fears clients are facing, forty-seven percent of survey respondents listed the government as a source of fear.

If there's a silver lining here it's that change always brings opportunity. Stay on top of legislative moves, and your practice may be well-positioned to outshine its competitors.

5. Cap rates on indexed annuities (20.0%)

Consumers want guarantees, yes, but they also want a strong return on investment. With cap rates very low in recent years, there is a growing sentiment among annuity prospects that being locked into a lower investment rate may save them money in the short run but cause them to lose out in the long run. Chris Bartolotta, marketing content manager for M3 Financial, puts it this way: "While it's mathematically unlikely that sitting on cash earning less than one percent is a better option than earning some appreciable interest in an annuity, [the cap rate] remains a big sticking point for a lot of consumers."

The good news is that consumers can have their cake and eat it too when it comes to these products, so long as they have a return-of-premium (ROP) rider. This rider ensures that the client will never receive less than he or she put into the product (minus any withdrawals that have been made). If rates do rise, consumers can remove their money, no questions asked, and reinvest elsewhere.