Life insurance ceased to be a once in a lifetime decision today. You can no longer sit back and relax once you have signed up for a good policy. And that is because you can never put a price on your life worth financially, that will hold good even later down the line. Life insurance is essentially your way of ensuring that your family is not left wanting even in your absence. While it is not possible to put an exact figure on a persons life savings, it is important to calculate the precise economic value of ones life time and not undersell yourself.
What is process behind calculating the right quote and not just settle for a cheap life insurance quote? While it is realistic that a person will go for the most affordable life insurance quote there is, the way most life insurance agents calculate it is to put an approximate value on the potential earning between the present and the rest of your working life. It is a common thing in todays world that most people are under insured and this is because there are either ignorant of the basics of insurance or insurance benefits. It is also the norm that people go by the insurance provided at their work place and do not look for anything more.
It is a fact that any average insurance policy buyer looks for the most affordable life insurance policy available. They look for the right amount of premium that they are willing to pay, but not for the right amount of death benefit their family ought to receive.
The industrys general rule to go by is to value your life insurance as ten to fifteen times the income you receive today. This is not the best solution as the sufficiency of the death benefit is also dependent on external factors like the inflation rate and even national economy. An internal factor that affects the death benefit amount is the lifestyle of the family at that particular situation.
Hence, it is important to keep vigilance and be aware of the nations economic state as well as the purchasing power of money. Be open to the idea of buying additional coverage to finally end up with the best life insurance quote there is. Insurance industry is constantly changing and coming up with lucrative deals to lure the customers, be sure not to miss them.
Monthly Archives: November 2022
Life Insurance Ulips Vs Traditional Products
Until end of August this year, the bulk of the life insurance products sold by insurance companies was ULIPs (Unit Linked Insurance Plans). Almost 70% of the new business premium earned by the life insurance companies was through ULIPs. The entire life insurance distribution machinery touted ULIPs as the ideal investment cum insurance product. While ULIPs were the flavour of the reason, there was a slightly unfortunate reason for them being pushed so much by the distributors- and that was because ULIPs had very high commissions for the person who was selling it, sometimes as high as 70% of the first year premium. Policy administration charges were high, surrender penalty was exorbitant and mis-selling was rampant. And finally, the cookie crumbled- first SEBI came down heavily saying it had a right to regulate ULIPs because they were essentially mutual funds masquerading as Insurance, and then IRDA cracked the whip laying down stringent criteria for the ULIPs. Commission were reduced, charges were minimized, and overall transparency was improved. In an ideal world, ULIPs became a great product for the consumer. But we do not live in an ideal world. While the ULIPs of today are far more aligned to customer interests, we find that there is no zeal and fervour to sell them on the part of the distributors. The very agents who were pushing ULIPs down the throat of unsuspecting customers do not consider ULIPS as the flavour of the season anymore. They have now fallen back upon the traditional products where IRDA has not laid down any guidelines for commission level.
Thus we find that traditional products sales have suddenly taken off. This is primarily because these products now allow the insurance agents and distributors to earn their fat commissions, and not because suddenly traditional products are better for customers than ULIPs. On the contrary, today, a ULIP is a great savings and insurance product.
If we look at the data coming out, we see that 50% of Reliance Lifes product sales are now traditional products, whereas a year ago, only 15% was through traditional products. Birla SunLife now generates 30% of their premium through ULIPS as compared to only 8% through ULIPs a year earlier. In the case of ING Vysya Life insurance, only 10% of their sale is through ULIPs now. All the insurers narrate the same story about how they are trying to reduce their reliance on ULIPs . But the real reason for the decreased importance of ULIPs is because the insurer can not pay enough commissions on ULIPs to keep the distributors happy due to the IRDA guidelines. And thus, they are resorting to selling traditional products. So next time, your friendly neighborhood agent espouses the virtues of a traditional life insurance product, do know that the real reason for the promotion is something completely different!
Signs Of High-quality Life Insurance Leads
Today’s economy has definitely made finding reliable life insurance leads a challenge. When you’re trying to find life insurance prospects that offer more reward than risk, it can help to keep in mind the many variables that determine reliability of your leads. It’s true that every potential client is different, but there will always be certain signs that can help you separate the bad leads from great potential clients.
1. Life insurance leads are obtained through a quality provider
When you buy business leads from a reputable provider, you will be given a list of potential clients that is fresh and current, very detailed and filled with high-quality life insurance leads. This will give you a great place to start making calls or contacting your potential clients to begin a wonderful and successful day of work. When the poor quality leads are eliminated from the beginning, your work is that much easier.
2. Leads have filled out information completely and accurately
There is really nothing that shows sincere interest in getting a life insurance policy like completely and accurately filling out a search form for insurance. Some people go online to just test the waters and get a general idea of what a quote will look like, but there are others who are honestly searching for life insurance and these leads will take the time to fully fill out the form. These long-form life insurance leads represent great prospects to work with.
3. Leads are responsive over the phone
What agent hasn’t experienced a phone call with a lead who tries to duck out of the conversation or make up an excuse for why they cannot speak at the moment? There will always be times when you will be asked to call back at a more convenient time, but a polite conversation will help to build a rapport with your potential customers.
4. Leads don’t have pre-existing medical conditions that make them high risk
Honest and accurate lead data sheets will provide you all the data you need to decide if potential clients are worth offering a policy. Of course, pre-existing medical conditions are one of the biggest factors when you’re selling life insurance or searching for health insurance leads. Those prospects who have no or few previous health issues and work hard to stay health represent the best leads, and this is possible with the custom-targeted filters available through many companies that sell business leads.
5. Leads are enthusiastic about working together
Finally, it’s a well-known fact that building a good rapport will lead to profitable clients. If your life insurance leads seem responsive on the phone, start a conversation and discuss the terms of their existing policy. If you can get them enthusiastic about discussing different policies they my be eligible for, you’re well on the way to success.