2009 MDRT Sales and Service Committee Tuesday, November 25, 2008
With the recent economic situation affecting so many MDRT members worldwide, the Sales and Service Committee would like MDRT members to answer one or all of the following questions about the ways in which we can all protect our clients.
Please post your response and check back to the MDRT Blog for solutions and ideas from fellow members.
How has the economic situation affected you and your clients?
What advice are you giving your clients in light of the current economic situation?
What are you glad that you were doing prior to the situation?
What changes are you going to make moving forward?
Yuka Nakahara-Goven, CLU, MBA Tuesday, February 2, 2010We are making phone calls to all of our clients and setting up additional review appointments as requested. Our efforts have paid off in terms of putting clients' mind at ease with reassurance.
READER COMMENTS
Dharmesh Goel, LUTCF Monday, March 2, 2009The best advice we can give to our clients and prospects in this kind of environment is to buy a lot of life insurance. If their overall investments and net worth is effected by this economy and stock market than those losses can be compensated by the tax free dollars payable by life insurance to the family in case of a death. I think it's very powerful.
READER COMMENTS
Brenda Mohammed Wednesday, January 28, 2009Whether it is a recession or the economy is booming, people's basic needs are the same.
They may need to scale down a bit, but continuous savings is a priority.
Life Insurance and annuities are still necessities in any budget for the obvious and only reasons, and these are the areas I will be focusing on...
READER COMMENTS
Ken Ibuki Monday, December 29, 20081. How has the economic crisis affected you or your clients?
Toyota Automotive announced on December 18th that their forecast for their settlements of accounts for next March will be a deficit.
This will have a devastating affect on the Japanese economy. Layoffs and deficit settlement of accounts will be expected especially from the subcontractors in the automotive industry. Many companies may declare bankruptcy. I have many clients who are in the automotive industry. My clients have already either reduced the face value or have terminated their contracts. Of course this has left devastating situations for insurance sales.
2. What advices are you giving your clients with the current economic situation in mind?
- Reduce investments in facilities/equipments and
reduce expenditures.
- I have advised my clients how to apply for
government assistance.
- Client’s companies stock prices have plummeted so I
have been advising them to take advantage of this
unfortunate situation and pass on to their
successors/implement succession plans for their
companies.
- I have also teamed up with public consultants of
labor and insurance to give advice about not making
unjustifiable layoffs.
3. What good thing have you done before this situation?
I have been consulting my clients about ownership of their company stock. However with the economy at its lowest point, the net assets of companies are declining. It is very effective for companies to take measures about their company stocks and successors for the business.
4. What kind of changes will you make now?
I have been advising clients only about utilization and sales of life insurance when the economy was growing. However I feel the importance of giving advice during this downward spiral. I’m looking for underlying risks that my clients may have and making recommendations for what type of life insurance products suites them best during this turmoil.
READER COMMENTS
Thomas W Young, ChFC, CLU, RFC Wednesday, December 17, 2008In my 33 years of being in this great business there has never been a more opportune time to tell the story of Dividend Paying Mutual Life insurance. This product is not an expensive life insurance policy if we've learned economics and cash flows to help a client use these dollars to stay in control. The money that has been given to the financial institutions has been used wrongly and the lack of integrity is showing big time.
We need to step up to the plate and either teach good economic concepts to clients or more importantly think of options other than UL, TERM, VAR UL and learn how to move yourself forward. My clients are ecstatic about what I have taught them. COW system, LEAP system, IBC system, If you don't know what these are you better find out or your career may become much less profitable. Stop losing peoples money. If traditional planning were a science no one would be losing money.
READER COMMENTS
Jiro Kato Wednesday, December 17, 2008・ この経済不況(状況)がどのように自分あるいは顧客に影響を与えたか
How does the economic crisis affect you or your client?
百年に一度と言われる経済不況の大きさと深さに、多くの経営者が心理的に大きな不安を抱えている。売上げの減少だけに終わらず、世界的な金融危機の中、銀行自身が資金繰りに不安を持ち、取引先企業への融資姿勢が極端に消極的になっている。その結果企業の資金繰りは大変厳しい状況となっている。
Many business owners have psychological difficulties about the economic crisis we’re facing. It’s doesn’t just stop with the decline in sales but worldwide financial woes have created cash flow problems within the banking industry themselves. In turn the banks are unwilling to make loans to their business clients thus creating cash flow situation severe to the end businesses.
・ 現経済状況を踏まえてどのようなアドバイスを顧客にしていますか
What kind of advice would you give your clients with the current economic situation in mind?
企業に対し、世界中の経済が停滞をしている中、売上げや販売強化といったことよりは、お金の動きがない状況下では、支出の見直しを行うことが重要と話している。
With the slow pace of economy worldwide and the money flow being slow, I advise the clients about reviewing their expenses rather than increasing sales or sales support.
・ この状況前から行って良かったと思うことは何ですか。
Did you do something that you thought worked out before this crisis?
企業に対し、中長期的な資金作りの手段として、確実にそして安全に資金の準備ができる生命保険商品を中心に導入してきた。不動産や株式、債券などがこの経済危機に直面し大きな影響を受け価格が下落するなか、経済環境に影響を受けにくい生命保険商品の解約返戻金等を運転資金等に活用し、企業の活性化に役立てていただいている。
For businesses I have them be ready for semi long term cash flows by implementing life insurance products which delivers safe and reliable funding. Real estate, stocks and bonds will decline by the effects when faced with the economic crisis. Businesses can cancel their life insurance policies which aren’t usually affected by the economic environment and utilize the returned funds to revive their company.
・ 今後を考えてどのような変更を行っていきますか。
What changes will you make when you think about the future?
今回の金融危機を直面し改めて確認できたのが、中長期的な資産運用に最適であり金融危機・経済不況下でも強みを発揮できるのは生命保険商品であり、今後も生命保険商品を中心に提案を続けていきたい。
After facing the financial woes I am certain that life insurance products are most suited for semi long term funding. Life insurance products show strength even when faced with the economic and financial recessions. I will continue to suggest mainly life insurance products.
READER COMMENTS
Ravikumar Thursday, December 4, 2008The clients are skeptical towards taking any further commitment on the investment front and also reworking on their spending.
In the current scenario we have been advising clients to invest in small parts; as in if you have a dollar to invest start with 25 cents and keep investing at every dip in the stock market. We are very happy to have booked profits of most of my clients and refrained new investments for over 8 months. Although we lost on revenue for ourselves in the short term, we have retained clients.
We are upgrading our systems and softwares. Meeting clients to understand on a one to one basis their current financial situation and reworking strategies based on that.
READER COMMENTS
Brian Klee, CLU, NZ Dip.LA Monday, December 1, 2008It is interesting to remember that when the Million Dollar Round Table was formed in 1927 those 27 members very soon were in the midst of the Great Depression. It was well recorded that knowledge and camaraderie were key factors which ensured their survival in those times. Today is no different.
�� How has the economic situation affected you and your clients?
- As I specialize in insurance advice only, the effect has
been minimal
- My clients have been prepared and understand there will
always be market changes; though apprehensive, they have
faith in the advice they have received
�� What advice are you giving to clients?
- Help to educate them to put their minds at ease
- Undertake to review their financial position to minimize risk
- Reduce debt as quickly as possible
- Always seek quality professional advice and first check out
their qualifications
�� What are you glad you were doing prior to this?
- Specializing in handling tough insurance cases
- Referring all retirement and investment advice work to
qualified financial planning specialists – and receiving
their insurance work in return
- Using best practice processes, with thorough Fact Find
records
- Emphasizing we are in the Protection Business
�� What changes are you going to make moving forward?
- Maintain client loyalty and empathy – not abandon clients
who are suffering
- Communicate – keep in regular touch – it’s even more
important in these times
- Focus on insurance sales whilst there’s uncertainty and
people are more risk averse
- Identify and prioritize markets least affected by these
recessionary times
Comment
Simply click Comments below the post to share your thoughts.
