Annuities and Life Insurance

Demand for fixed and fixed indexed annuities have grown substantially in 2020. Any client who purchased an FIA before February 2020 from you should give strong recommendations to their friends. That said, lower long-term interest rates will put pressure on carriers to maintain caps and guaranteed income benefits. To capitalize on the market’s current opportunities, we recommend the following:

• Plan to put the vast majority of your business with carriers that can easily support remote sales.
• Consider the strategies on which you will focus. A change may require you to reassess the carriers with whom you work.
• Be prepared for rapidly changing pricing environments. Explain the market environment to your clients to avoid surprises if clients delay completing their applications.

Online Leads

We typically see our top individual agents pursue one of five business models for generating new leads: referrals, online leads, seminars, radio/television shows, or event sponsorship. In this section, we focus on online lead generation. We recognize that you may either continue to or start to purchase leads from vendors or from your Independent Marketing Organization.  For those who want to take personal control of their lead generation, we’ll cover some basics of online lead acquisition that you can run yourself. In any case, your lead strategy should be based on the clients you want to target, the marketing concepts that will work in this environment, and the products you want to sell in today’s market.

Location, location, location

Spending time researching where your prospects engage on social media will help you focus on a plan and be more effective in your lead acquisition. Be sure to consider not just audience size, but the extent of their engagement. For instance: you may find that your target audience is a sizeable one on Twitter, however their engagement is low – a telltale sign they will not be willing to accept your call to action. Conversely, you may find a highly engaged group of prospects on Facebook, sharing articles and willingly making trusted connections. This group may be an opportunity to pursue new leads.

TIP: Research regional groups on Facebook and even in your own neighborhood via platforms such as NextDoor or Patch.

TIP: Additionally, there are free social media listening tools that can help you better understand your target audience and better prepare your call to action.

Be Social, Helpful, and a Trusted Source

You wouldn’t stand in the corner and ignore the active chatter of a busy cocktail party, would you? If you’re not actively participating in the conversation via your preferred social media channel, you’re missing out on the opportunity to make new connections. Set a goal of joining the conversation and the best way to do is to offer help or advice. Saying, “How can I help?” is one of the most effective ways to encourage interaction and to listen to what your potential customer needs.

Being consistent on any social media platform with topical and accurate information will position you as the go-to resource when a prospect finds themselves in the market.

TIP: Salesforce: How to Generate Leads: Ten Strategies to Help You Generate New Leads

Partner Up

Speaking of being helpful, finding a partner who has equal or more influence via a social media platform may help introduce you to a new audience. While you wouldn’t want to partner with a direct competitor in your area, there might be other local influencers in, for instance, Real Estate or the local Chamber of Commerce who can partner with you on various topics, articles, and virtual events that could result in an increase in prospects.

TIP: Always consider being generous to your partner, they’re going to remember how you helped them and remember a good experience when the opportunity arises again.

Keep Them Warm

Bakers often use a warm oven drawer to nurture their breads, allowing them to grow. Consider the same sentiment when working with a lead list you already own. After welcoming them shortly after acquisition and offering to answer their questions or consider an appointment, take great care to consistently – and gently – keep in touch. Perhaps there’s a new article or rate information that’s interesting to share. Even once per month is enough to remind your audience that you’re here to help.

“Ad”ding to Your Strategy

Social media advertising can be very effective when you match engaging messaging with the right audience. By now, you’ve already researched your audience using social media listening tools or by engaging with them online. Take that information and create ads that inspire, inform, or entertain. Here’s a quick guide to getting started with Facebook ads, which are a great resource for generating quality leads at a low cost.

Raising brand awareness in your community while people are at home offers fresh opportunities to demonstrate your authenticity, empathy and agility.

Stay active in your community: Associate your brand with doing good

People will remember brands for their acts of kindness in a time of crisis, especially if done with authenticity, generosity and compassion. Donating food, providing free products for medical personnel or continuing to pay employees while a company’s doors are closed are a few examples of doing good. Consumers will likely remember how Ford, GE, and 3M partnered to repurpose manufacturing capacity and put people back to work making respirators and ventilators to fight coronavirus. However, you need to show that your contributions are not solely for commercial benefit but for the good of your community.

Sponsor new events: Support some of the new normal celebrations

Who would ever have ever imagined drive-by birthdays or celebrations of other important milestones? Can you sponsor one of these gatherings and give away branded gifts from the side of the road with a lawn sign promoting your agency?

Remember signage: Show your community colors

Crises can unite communities. Frequently, each locale will show their support for a cause with physical, visible signs, such as yellow ribbons and flags. If you have an office in town, don’t let it look vacant with letters piling at the door. Follow marketing common sense. If everyone supports your local hospital, buy a sign that shows you contributed at the office, even if you really aren’t there.

Support your clients’ businesses: Demonstrate loyalty & empathy

Show your clients in the community you care by using their curbside food deliveries. Purchase gift cards from their businesses to help them keep their heads above water and make it through this difficult time.

Give something away for free: Your advice could help a lot of people in need

Businesses are showing empathy in many ways such as banks waiving overdraft fees, and SAP making its Qualtrics Remote Work Pulse platform free to companies who might be rapidly transitioning to new ways of working. Can you help people figure out their financial quandaries and avoid making simple mistakes? A favor today will build massive goodwill for future business.

Keep building your network: Even face-to-face forums have gone virtual

Don’t ignore your business networking organizations. If you haven’t joined any of their virtual events, make sure to try. You may be very surprised who you meet the next time they hold an online event.

Tell your new story: Amplify all your good acts on social media

Remember to document your time in quarantine. Take pictures of your team in masks. Show videos when you helped out at the foodbanks. Using social media channels to share information on nearly all topics from government safety guidelines to how to help our fellow neighbors and local charities is our new normal. Demonstrate your true personality and show you have adapted to the times.

Don’t stop advertising: Stay in front of the community in a tasteful manner

The need for advertising may be greater than ever in times like these. However, you will probably need to reevaluate the appropriateness of the images and messages. You may want to pull the stock pictures of seniors on cruises!

Will raising brand awareness in your community translate into long-term loyalty or sales? 

There’s no guarantee that raising brand awareness in your community will lead to long-term loyalty or sales. However, doing well by doing good can only strengthen your brand.

In summary, be mindful of 5 things:

Traditional ways still work…with some virtual twists

*Source: Facebook by the Numbers: Stats, Demographics & Fun Facts. Omnicore (April 22, 2020).

Client appreciation events may be your secret sauce

Successful agencies have historically relied on strong client appreciation events for lead generation activities. You can simply wait until the crisis passes before you return to the format that works for you. Or, you can use a little imagination and create events that cost less than traditional formats but achieve results not possible in a physical venue.

How can virtual events really top physical events?

• You’re not facing much competition. Everyone, for now, is basically stuck at home. Even a mediocre experience may attract more attendees than you expect, at least for now.
• Geographic limits don’t exist. As long as you have licenses in the resident states of your guests, you can pull people from across the country to attend.
• You may capture better speakers, musicians, or celebrities to attend at a much lower cost.
• Breakout rooms available in Zoom (and some other platforms) allow you to create more intimate and controlled experiences to maximize engagement with a larger group of attendees.
• Use of polls and chat features allow you to create more engagement with more people than ever before possible.

What will remain the same when you host a virtual rather than a physical client appreciation event?

• These event ideas are all about deepening client connections.
• Customize your approach to your client’s interests.
• Keep the selling to a minimum.
• If possible, enlist the involvement of your spouse or partner for couple events.
• Whenever possible encourage clients to “invite a friend”. However, include any prospects you know as well.

We have listed some of the common (and uncommon) events available for you today in our strange world. Beneath each we offer suggestions on how to modify to make the event even more potent in a virtual environment.

Encourage your friends to participate to tell their story via Facebook or Instagram. Follow up personally with each attendee afterwards. And always ask them to introduce you to their friends who could benefit from your services.

5 Helpful Things to Talk to Clients About During COVID-19

Revisit The “Am I On Track?” Conversation

No one enjoys seeing their hard-earned savings drop. But as painful as it may be to see declining balances, the bigger pain point is that plans and goals may need to be put on hold or shift completely.

One of the most impactful things that agents can do right now is to reevaluate clients’ plans to be able to give them the answer to the all-important question, “Am I on track?”

Help Clients Adjust Their Budget (Effectively) As Necessary

For those clients whose plans are impacted by the current economic crisis and market downturns, perhaps one of the most valuable services an agent can provide is to help the client to review their monthly/annual spending to make adjustments, as necessary, to make the plan work again.

Agents can serve as a sounding board to help clients talk through and make potentially difficult decisions. Whether a client is 85 or 35, making cuts to spending can be difficult. In some cases, the expense(s) to go may be obvious, but other times, it may be more challenging, particularly in situations where spouses disagree on what should be cut. Agents can help clients to remain focused on the things which are most important to them and to serve as impartial arbiters when/if desired.

Talk through Making 2020 Roth Conversions While The Markets Are Low

While your gains may not be as large, the decision to make a Roth conversion is influenced in part by tax considerations.

With the new Secure Act legislation, there are now no income limits imposed by the IRS upon Roth IRA conversions. Anyone with a Traditional IRA, 401k, 403b or other similar retirement plan can convert it into a Roth IRA no matter how much they earn in a year. In past years, individuals making more than a defined income limit could not fully convert a Traditional IRA or other account into a Roth IRA. This limit has not applied since the 2010 tax year.

Create A Game Plan for What Happens If The Emergency Reserve Runs Dry

Several analysts have projected the unemployment rate to rise to 30% or higher in the near future*. If that happens, there’s no telling how long it will take, particularly in hard-hit areas, for some people to get back to work and avoid living off of their savings. For those approaching retirement age, this could drastically change their retirement vision.

Given this dynamic, agents should consider helping clients to establish the next-in-line source of cash to use after their emergency reserve runs dry. Notably, although clients may still be months away from running low on emergency funds, it’s important to identify the next source predictable income or cash flow, as it can provide peace of mind. Logistically, some options such as selling assets or looking at immediate income options can take time to secure.

*Source: Steve Matthews, U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says. Bloomberg (Mar 22, 2020)

Consider Reducing And/Or Temporarily Eliminating Payments That Don’t Have to Be Made

Many individuals’ cashflows are impacted by the current COVID-19 crisis. Agents can help clients understand the types of payments that can (or should) currently be considered for reduction. These may include:

• Federal Student Loan Payments.  The Department of Education announced that the interest rate on all Federally-provided student loans will automatically drop*. This is worth looking into. Borrowers can call 1-800-4-FED-AID, or visit their loan servicers website to make the change.
• Mortgage Payments. In some states a mortgage ‘holiday’ may be available to clients who have seen disruptions to their income due to the COVID-19 crisis. The general idea of such a provision is to automatically allow impacted borrowers to defer payments without incurring additional costs and/or impacting their credit scores. Mortgages often represent the largest monthly expense. Any relief could help ease the impact of decreased cashflows.
• Credit Card Payments. Many credit card companies are offering relief during the COVID-19 crisis. This may include reduced or delayed monthly payments, reduced interest rates, and abated late and other fees. Reaching out to credit card companies could provide some temporary help.

*Source: Delivering on President Trump’s Promise, Secretary DeVos Suspends Federal Student Loan Payments, Waives Interest During National Emergency. U.S. Department of Education (Mar. 20, 2020).

In short… help your clients control what they can today and reassure them you are here to continue the conversation tomorrow.