Right now, numerous factors are driving expansion of annuities available to consumers. Consumer need for more diverse insurance and annuity products is a basic and essential factor in the market.
Technology is increasingly influencing product options as well. Consumers are regularly using Internet research to find the products that work for them before speaking with a financial professional, which means carriers and producers need to have a wide range of options visible online if they want to transform qualified leads into sales.
Online is the new office
Not only has technology and the Internet increased the demand for nuanced products, but it’s also shifted the sales landscape away from the brick-and-mortar office to the web.
Consumers should be able to find information regarding life insurance and annuity products online, but they should be able to communicate with producers and conduct entire transactions online without ever stepping foot into a producer’s office.
Financial professionals and their clients are well aware that the average person lives longer now than they did a decade or two ago, and the increasing average life span creates longevity risk. While your clients may not be worried about living longer than their assets allow, they may not be prepared to distribute their wealth evenly throughout their retirement or face higher medical and living expenses much later in life.
Moving forward, it’s crucial financial professionals make longevity a discussion with each of their clients. In fact, the younger the client, the more important it is to bring it up. Life insurance and annuities are the types of products that will enable your client to best mitigate the financial risk of living longer.
New ways to show value
While life insurance and annuities are smart investment decisions for your clients, many choose not to purchase these products because they fail to see the value. Financial professionals need to create innovative ways to engage both current and potential clients in a healthy discussion about their future as well as develop new means to demonstrate the true value of life insurance and annuities.
By venturing away from the traditional methods of selling these products, financial professionals better set themselves up for years to come when there are even more insurance and annuity options on the market and consumers are aware of their longevity risk.
Many reports show life insurance and annuity sales are flat or have even declined in recent months, but if producers and carriers position themselves for growth, 2016 has the potential to be a strong year for the industry. The economy is improving and consumers are gaining confidence in spending on items they consider nonessential. As long as the market responds with the right products and enables consumers to easily research and purchase products, producers could see an increase in sales.