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HOW TO SELL Life and Health INSURANCE TO SENIORS: The TOP 5 SENIOR Product Categories For Success - YouTube
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If you're at a point where you're ready
to get into the life and health
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insurance business and you're trying to
figure out where to jump in at, what
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products you might want to sell, I'm
gonna go through with you and tell you
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exactly all the pros and cons of each
product line in our business. My name is
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Jeremy Smith and over the past 16 years
I've been a agent, a manager, an owner
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operator and for the last six years a
business coach traveling the country to
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help insurance agents grow their
practice and today I'm gonna try and
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help you grow yours. If you've been on
YouTube before then you know the game
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please hit subscribe and ring the bell.
So if you're at that point you've
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decided to get into life and health
insurance business maybe even already
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have your license I want to talk with
you today about helping you decide
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exactly what type of agent you want to
become. Obviously choosing who you're
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gonna go work for. If you're gonna go
work for a captive organization, if
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you're gonna be independent. That's a
really important question. I'll talk
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about that explicitly here on my next
couple videos, but today I want to talk
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with you about really what kind of agent
you want to become wherever you go
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working for. In regards to which products
you're gonna really sell and offer to
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your clients.
There in our business are a handful of
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different main topics: final expense,
Medicare supplements, Medicare Advantage,
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long-term care, life insurance and
annuities. Yes there's a whole bunch of
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smaller type products ancillary products
you might sell those are the main ones
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in the life and health insurance
business that somebody may offer they
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may be selling. I want to try and go
through individually with these
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different product lines and tell you the
good and the bad about each one the
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tough stuff and the easy stuff the
lucrative stuff and the not so lucrative
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stuff. So let's start with final expense
for a second. It probably is one of those
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fields that's probably has more agents
than any other field that and Medicare.
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One of the reasons why people like Final
expense so much is it probably is
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because it's one of the easiest learning
curves that there is. You're talking
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about just a small life insurance policy.
It's simplified issue which means that
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there's not a full underwrite.it's not a
full health underwrite. They're not
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gonna go get doctors records.
They can literally just answer about 12
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or 15 questions and if they answer those
correctly it's done. They're approved. So
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it's very easy to sell the learning
curves very, very short. Get paid quickly.
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That's another big reason why especially
when people are starting out they like
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the final expense business because a lot
of times you're getting paid inside the
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3 to 5 days of writing the application.
Average comp on a final expenses may be
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five to seven hundred dollars depending
on exactly where you live and the age of
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your clientele but that's a good average.
Leads are abundant. It seems like you
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can buy leads from every street corner
when it comes to final expense. That's
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the good and the bad. The good is
they're fairly cheap and they're
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abundant. The bad news is a lot of times
they're rewashed and re-washed and
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rewashed. You're buying leads a lot of times that
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people have called over and over again
for years sometimes. The retention rate
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on this sale is really pretty
high too. I mean normally most people
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unless they find themselves in position
where they can't afford it once they buy
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this policy they're probably going to
keep it for their entire life and there
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is a small residual income that comes
from final expense. That's all the good.
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My big problem I see when it comes to
final expense is that most of the agents
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that I have met, they're meeting and
selling this product not always but a
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lot of times they're selling it to less
financially fortunate people. Sometimes
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you may buy a final expense policy
because it's of the health reasons it
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might be easier to qualify for. A lot of
times though the marketing is driven in
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neighborhoods and zip codes and places
where they may be less financially
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fortunate and the problem with that is a
lot less opportunity to cross sell and
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sell other products and so therefore
they're starting every day, every week,
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every month, every year going out and
plowing a new field. They're every
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day they come to work they got to go
find new clients so they're not really
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their life's not really getting easier
by building a database of clients. In
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comparison if you're somebody who's
selling multiple clients and maybe
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a mid-range finance and health range
person. Medicare supplements, it's one of
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my favorite. It's where I really started in the
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business for at least the first few
months. It's an easy learning curve just
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like final expense. One of the greatest
things about Medicare supplements is
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probably the biggest market we have.
Almost every single senior over the age
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of 65 has got some type of
Medicare and so therefore it's just a
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huge market that just gets bigger and
bigger and bigger every year with the
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baby boomer bubble. It's got a 100%
residual. So yes you may be making half
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of the comp that you would be making on
a final expense you may be making two
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and a half two hundred fifty three
hundred dollars per sale, but you're
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getting paid that every year full
residual for up to ten years. So it's
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really a couple thousand dollar sale
every time you use it, every time you
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sell it as long as you're treating your
clients right and doing any reviews with
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them. The comps quick. You're probably
gonna be paid on it inside of a couple
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weeks. Leads are obviously abundant just
like on finally expense. And here's the
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great thing about it: when you sell this
policy to somebody you're normally not
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walking out of the home costing them
more money than when you walked into the
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home. You're normally gonna save them two, three, four
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sometimes up to a thousand dollars a
year in premiums for the exact same
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coverage they already had. That's premium
savings that you could use to fund
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another sale like maybe a final expense
policy. I think it's crazy the people
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that are out there selling Final expense
that aren't also selling Medicare
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supplements because it's a way to double
up your sales. And to be honest with you
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it makes your finally expense sales so
much easier because you're saving them
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that money before you ask them to spend
that money. The next topic
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real quickly talk about would be
Medicare Advantage. Medicare Advantage
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I'm not gonna stay on this topic very
long. It's a great product okay for the
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right people. It's a market, it's a
product that's growing and getting
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bigger and bigger by the bundles every
single year and has for the last at
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least seven or eight years. Like Medicare
supplements it's got a hundred percent
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residual. It's a great way to grow your
clientele list. The educational curve
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in the compliance to sell Medicare
Advantage is way higher though than
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Medicare supplements so just know that
going into it. The other thing about
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Medicare advantage is a little bit
quirky is that almost all of your sales
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not all of them but almost all of your
sales happen inside of the last couple
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months of the year in a period they
call open enrollment. So a lot of times
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people do that Medicare Advantage they
use that to build a client list but then you
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also got to figure out something that
you're gonna do for and sell to make a
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living for the other ten months of the
year. Jump into the next topic let's talk
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about long-term care for a second.
So long-term care there's been a lot of
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good and a lot of bad with this product.
Let me start with the bad: the biggest
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thing is the people that have had
experience over the last two decades
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selling long term care have been selling
products that have been attached to a
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serious black eye because the insurance
companies that offered these products
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over the last 20 years did not know how
to price them. So therefore there was a
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whole lot of policies sold in the last
20 years to seniors that bought the
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policy and as they age as they got older
the premium went through the roof they
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couldn't they couldn't afford it kicked
it to the side cancelled it and
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therefore it's got a bad stain on it
from an industry standpoint. The other
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big problem with long-term care over
this extended period of time has been
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that the underwriting process has been
super cumbersome and painful,
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long and a lot of times people don't qualify for those
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conventional long term care policies so
that's the bad if you're still listening
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to me though and you haven't given up on
it I'm gonna tell you that if I was in
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the insurance business if I was a
producer I would without a doubt I would
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be selling long term care. I would be
doing what it took to get boned up on
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the education part of a long term care
and here's why: over 62% of the people
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over the age of 65 are gonna have a long
term care event at some point in their
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life. The average cost is over $8,000 a
month that's about 80 - $90,000 a year
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depending on exactly where you live in
the country. Average length of time they
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go through it is about three years so it
is the largest financial liability that
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a senior has and 95% of them don't
have any coverage because of what I just
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told you there, the bad
part, but fortunately over these last
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couple years the insurance companies
have upped their game and they've
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started figuring out ways to combo this
particular problem this particular
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product with annuities and life
insurance.
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Therefore doing away with that crazy
underwriting process and doing away with
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the price hikes. It's really
gonna be a game changer and there's not
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that many agents not that much of your
competition knows enough about long-term
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care to be able to bring that benefit up
in a sale so if especially if you're
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selling life and annuities you've got to
learn at least the bare minimum about
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long-term care and how to talk to that
with your clients because it will it
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will take your life and annuity sales
through the roof. So life insurance
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another awesome product. It's probably
not something that somebody brand new
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into the business is gonna go in and
just sell fully underwritten life
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insurance. There's a lot of money in it.
The problem with it is it's a very slow
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turnaround. I meet somebody write a life
insurance policy on them it could be two
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or three months down the road before I'm
actually getting paid. So a lot of times
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agents I'm not discouraging you from learning
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and being able to sell life insurance
just normally you're selling smaller
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easier products and then life insurance
you sell it when it comes across the
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desk for you okay. When it comes to life
insurance there's one big change that's
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happened over the last seven or eight
years and most agents don't even know
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about this. There's a huge market for
life insurance and here's why: the life
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insurance companies have finally updated
their mortality tables which is
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dramatically dropped the cost of insurance.
Almost everybody you're going to run
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across has got a life insurance policy
if they're an adult. There is an extremely
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good chance that if they're still
healthy that you can dramatically save
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them money or give them more coverage
than they had before for the same amount
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of money just with the stroke of a pen.
So being able to at least look for that you
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don't have to sell it. They've already
got it. You don't have to convince them
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why they should buy life insurance. All
you've got to do is be on the lookout
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for somebody that has it, get the numbers,
call your IMO, have them have them run
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the numbers and if you can save them
money present it. The sale is really
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that easy. You just got to be on the lookout
for it. Life insurance is a great
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product. It really is. It's just something
if you're at the beginning stages you're
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probably going to couple that with other
products. So we got one more topic to
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talk about which is a topic of annuities.
Before I get into that real quick if
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I'm hitting home with you on this stuff
do me a favor and obviously like but
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send me some comments below and tell me your thoughts or questions you might
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have on everything we've talked about. So
the last topic is annuities and that's
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probably the scariest topic there is in
our business. It seems like because it's
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money. People get really afraid to talk
about money if they're not an expert.
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The thing you got to keep in mind is that
if you know some you probably know more
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than the client you're in front of. But let
me break down annuities for a second.
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Personally for me it's my favorite
product. It's really what I've
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specialized in and I think really become
probably the best at although my
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agencies we've always sold all products
so I'll get into that here to close
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things up. So I'll hit you with just a couple
of the things about annuities. So average
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comp is about seven eight percent
depending on exactly where you live the
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average premium is about a hundred
thousand so therefore your average
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commission per sale is about seven eight
thousand dollars per sale. Average issue
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time might be four to six weeks. Let's
talk for just second about the current
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financial picture. We had a stock market
that's went up for a number of years,
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straight up okay. Most people that are in
the finance business would tell you
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the stock market is gonna do one of a
couple things: it's gonna crash, it's
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gonna definitely have a correction or
we're gonna get into a stagnant mark. At
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some point it's gonna have to do
something other than going straight up
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so when you've got a product out there
where you can talk to your clients about
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that will allow them and these products
right now allow you maybe 90 percent of
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all the stock market gains with zero
chance of loss. So you tell me which
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makes more sense 100 percent of the
gains and a hundred percent of the loss
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or getting the products that might allow
you to get a high percentage of the
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gains with zero risk. You talk to a
senior and that option B is gonna look
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very attractive. It's a great time to be
getting boned up, experienced and
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educated on annuities and offering that
to your clients. Final point I want to
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make here today and I hope this little
tutorial and these different products
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hit home with you.
The biggest thing I want to express to
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you this if you're at that beginning
stage you're getting into the business
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the hardest thing that we do in our
business is to get in front of a
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qualified client okay. So therefore you
get into a hundred different client
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meetings they're all gonna have
different problems. They're all gonna
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have different needs. They're all gonna
have different things you have to find
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the solution for. So in my opinion
becoming a product specialist and
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focused in on one product maybe that's
where you start, but I'm very passionate
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that if you're gonna choose this to be a
career and not just a job that you
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should be aggressively learning all of
these different products so that you can
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hit whatever pitches in front of you.
Because once again the hardest thing we
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do is get in front of a qualified client.
Once you get there in my opinion you
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better be able to have the solution to
their problem and it may exist in
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a handful of different products. Once
again please do me a favor and like or
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comment below. Hit the bell. Stay tuned
with us now. If you're at the beginning
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stage I'm going to talk specifically now
about captive organizations the pros and
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cons and also if you're going to go
independent where to enter the business
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as far as how to choose an IMO. Thanks
for your time we'll look forward to
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seeing you in our next video.
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