As stated earlier these alternatives depend a great deal on the agent's expertise and interests. But let's brainstorm and develop possibilities for each individual line of insurance sales with the empahsis being twofold. If it has a propensity to be a quality revenue generator and it complements and enhances the current business activity.
Property and Casualty
Let's take auto first. Obvious additional sales possibilities include boats, RV's, personal watercraft, motorcycle, ATV's and other vehicle insurance. This is where multiple policies can lead to both increased commissions and really nice discounts for clients when you sell them additional policies.
Life
Additional revenue streams here can include combining life policies with long-term care (LTC) or launching into Annuities.
Life Insurance Long-term Care
A new trend in the life insurance industry involves partnering policies with life insurance to maximize financial investments.
Combined life, long-term care policies address the dilemma of rising long-term care insurance premiums. With consumers worrying about large premium increases, several large insurers created policies that combine the benefits of life insurance and LTC insurance. Essentially, what this combination provides is that if the client ends up not needing long-term care coverage in the policy for LTC costs, the client's beneficiaries will receive a death benefit to not wast the funds.
To set up these policies the insured makes a single-premium deposit into a life insurance policy. Typically the money comes from savings that the client did not plan to use in their lifetime, but would otherwise leave to their children. If some of the death benefit is used for care, the balance goes to your heirs.
By combining policies, the agent provides for their clients complete needs and it serves the dual purpose of long-term care coverage and life insurance. Through this partnership of policies the agent becomes a one-stop trusted resource.
Partnering Life Insurance and Annuities
A strong strategy is to ensure your client's bases are all covered- on insurance and income. No agent would willfully advise a client to purchase double the insurance they need as they move toward retirement and a fixed income. Clients need adequate planning to make sure they have enough insurance coverage and enough income in to their retirement years.
Beyond helping clients with life insurance, agents can also help clients ensure they are solvent in their retirement years by setting up annuities. Annuities can provide an income stream if for instance, the client lives longer than expected. After the client pays the premiums, annuities can pay out on a fixed schedule, allowing clients to budget and plan accordingly.
This strategy creates the agent as a valuable,go-to resource for all the clients needs.
