The Real Reason that Life Insurance Sales are So Down

Are you one of the bashful 56% of Financial Advisors who, according to Saybrus Partners, won’t talk about life insurance even if the client brings it up? Imagine. They won’t even talk about life insurance is their CLIENT brings it up.

I believe that advisors have turned away from life insurance for several reasons:

• Selling life insurance is emotional - a soft skill. Unfortunately, soft skills have been devalued in favour of hard, technical skills. That devalues life insurance as a solution and advisors as solution providers.
• Most advisors understand an urgent GoFundMe page where many people pay in a little so someone can have a lot in an emergency. But they don’t appreciate life insurance which is also where many people pay in a little so someone can a lot in an emergency - except that it’s prearranged and prepaid.

• Investment-focused advisors manage investment risk but usually ignore the risk of clients not having the time for their investment plans to work out for their family.
• Mortality is routinely underplayed. No, we haven’t cured cancer yet and heart attacks and strokes continue to kill people, but we think we have all the time in the world. In fact, we are all on the clock.
• The so-called, easy money in investment sales has displaced life insurance sales as the way to build a business. So, we don’t do it.
• We’ve been told our whole lives not to pry into personal matters. The Life Insurance buying discussion is about as personal as it gets, so we don’t start it. The result is families and businesses that want the protection don’t get it.

It’s just not right. It’s time to start talking about life insurance again.

Jim Ruta