Does an $18,000 Premium Grab Your Attention?

A major life insurer recently shared significant premium results that they've realized in the business planning marketplace over the last couple of years. The average size case represents $18,000 in new premium. And that's $18,000 of traditional individual life premium - not COLI or spread compensation type products. If that number and the resulting revenue grabs your attention, then you'll want to invest some of your time to realize this kind of ROI - because the results are real, business owners are buying, and advisors are successfully using permanent life insurance to alleviate a host of worries that keep business owners awake at night. 

Long seen as a market where low cost term was often the solution, the business planning market is enjoying a tremendous renaissance, making it very attractive for life insurance advisors to focus on. Today, business continuity and succession exposure is often being resolved using permanent products instead of, or in addition to, term insurance. Quite simply, this environment is one where business owners are thinking longer term - and permanent products provide optionality and can adjust for evolving needs. 

But why the renaissance? Several factors are contributing to this expansive opportunity:

  • The Tax Cuts and Jobs Act (2017) and upticks in cash flow (Related: Navigating the New Tax Act)
  • Continued economic growth and resulting optimism
  • Low unemployment and the competition for talent
  • Low interest rates (at least for now) helping to stimulate growth
  • Demographics: baby boomer business owners moving into retirement transition phase
  • Need for longevity planning - not just protection

In this climate of growth and economic optimism, business owners are showing a greater inclination to plan and, just as important, to take steps to implement their planning. And they're thinking bigger and looking beyond time frames limited by conventional term insurance solutions.

For example, key-person coverage historically would result in a decent term sale. But in an environment where competition for talent is a full contact sport, we can now incorporate products that protect the business and do double duty in terms of recruiting, rewarding and retaining key employees - providing valuable security well into retirement - be it death, living too long, or getting sick along the way. 

The Business Market Strategy for Success

And the major carrier seeing an average case premium of $18,000?  They also happen to be the recognized leader when it comes to the business market - with the resources, tools and products to ensure success. Windsor has partnered with the Principal Financial Group to get these conversations started, uncover needs, and to deliver comprehensive solutions to business owners.

We're pleased to introduce three "presentations on demand," moderated by Windsor's Marc Schwartz, that will help you identify and target very specific opportunities, and then understand and use the support available to you right now. After all, those $18,000 + premium cases are out there waiting for you - but for how long?

In the first presentation, Finding Opportunities in the Business Market the focus is on the broader market, why it's ripe, and specifics that quantify the magnitude of the opportunity. Then the session guides you to tools and resources that will help you execute quickly and successfully, including Principal's complimentary business valuation service (Related: Moving the Ball). Here are the topics covered and timing:

  • Business Market Opportunity (1:20)
  • Average Case Size & Revenue (3:33)
  • Identify who you should talk to – key industries & demographics (4:21)
  • What you need – resources and tools (7:09)
  • Take advantage of new opportunities presented by the Tax Cuts and Jobs Act (9:26)
  • Start more conversations with unique approach tools – business needs analysis, informal business valuation/buy-sell review (17:00)

In the second presentation, Key Employee Retention & Retirement Solutions the emphasis is on the "long game:" keeping good people and ways to provide supplemental retirement income for both business owners and those key employees. (Related - Life Insurance Retirement Plans - The LIRP Opportunity) This is a quickly evolving part of this market, and it's critical to understand the solutions available to deal with both current and future client concerns. Here are the topics and timing:

  • Help business owners plan for their own retirement with a customized analysis report (1:50)
  • Retirement Focused Approaches (2:30)
  • Use our robust toolset to identify the appropriate key employee plan design (4:47)
  • Learn more about some of our retirement solutions, including nonqualified deferred compensation (15:00) and employee stock ownership plans (23:55)

And in the third presentation, Opening New Markets with Targeted Marketing Approaches  you will be challenged to explore new markets and potential revenue sources. But beyond the education, what's great about this segment are the tool and tactics available right now that will open new doors for you - and close cases. Here are the topics and timing:

  • Explore the opportunities available in the agribusiness market (1:19)
  • Review the robust approach packages available to you and how to get started (3:07)
  • Explore the opportunities available in the Property & Casualty markets (7:37)
  • Learn about the comprehensive support you have access to (14:37)

​ Yes, the business market is hot right now and the environment is ripe for business owners to engage and implement long-term planning. And with life insurance (both permanent and term) being an increasingly versatile financial vehicle, each opportunity can present multiple sales. With Windsor's help, you can quickly be enjoying those $18,000+ premium cases!

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Monday, 11 December 2023

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