For many life insurance producers, “flat” in 2009 meant they were having quite a good year. The larger ticket premiums were not as plentiful as in the recent past, something producers had become accustomed to in the past few years.

Certainly, the “Policy Review” concept continued to be successful for many producers, but with a twist. Many advisors report that they have used reviews with clients not to increase the current coverage, but to lower premiums going forward. Cash flow is a major concern for wealthy clients who have their investments tied up elsewhere.

So, if sales are trending downward and premiums are lower, what steps can producers take to make sure they won’t be “flat” in 2010?

Like salespeople in other industries, life insurance producers tend to sell products they know, understand and are comfortable with. What happens, of course, is that they leave other opportunities on the table.

Many fail to realize that more products that satisfy several needs are coming into the market on a routine basis. The life insurance companies are recognizing that there is a significant marketing opportunity in these combination type products.

Here are some examples of how these newer products can help producers make it much easier to succeed at cross selling.

• Long-Term Care riders. Long-Term Care sales have felt the impact of the economic situation. As every producer knows, it’s been difficult making Long-Term Care (LTC) sales. Clients say they want this product, but few buy. As a result, few producers present the product.

Now more and more carriers are finding ways to include Long-Term Care in their permanent life plans. Adding a LTC rider to a guaranteed universal life plan can be a cost effective way to add LTC to your client’s portfolio. While most carriers underwrite separately for the life and LTC components of the plan, the savings can be significant if the application is approved. Needless to say, the addition of the LTC rider increases the target premium for the producer.

As a sales concept, the LTC rider is an excellent example of enhancing value. In the client’s mind they are actually getting more for less.

• Cash enhancement riders. With most guaranteed universal life contracts, there is little or no cash value in the plans. Since the economic downturn has created “cash emergencies” for many clients, they are far more interested in liquidity.

Responding to this lack of cash accumulation, the life insurance companies have changed course and are also coming out with “cash enhancement” riders that can significantly increase the cash surrender value in the plan. “The additional cost of these riders is peanuts,” as one producer noted, when compared to the price of a whole life plan. The low cost tends to mask the fact that a “cash enhancement” rider can serve multiple needs down the road at a very low cost. There are also high early cash value plans available that will spread the compensation payments out over a few years, but add significant growth down the road.

• Finding more missed opportunities. Utilizing a Policy Review can also assist in finding missed opportunities in other product lines. By taking the time to understand what a client’s plan looks like compared to their goals, a producer can recommend using the surrender value in the life plan to serve other purposes.

If the client no longer needs the life insurance plan, for example, the cash value can be used for retirement income by purchasing a Single Premium Immediate Annuity. And it doesn’t need to stop here. A portion of the annuity income can be applied to pay the premiums for traditional Long-Term Care Insurance plan.

We could also take that same policy and try to increase the payout to the client by shopping the Life Settlement Market.

In the same way, a producer could recommend converting a term life plan with no cash that the client was about to surrender into a permanent plan to then settle. This becomes two sales for the producer and a payday for the client that was just going to let his term lapse.

There are also single premium products available that offer a death benefit, LTC coverage and a return of premium option. This can be an effective way for clients to leverage their cash for future use should they ever need the LTC benefit.

• Cross selling can also be concept driven. While it’s never good for producers to spread themselves too thin, why not integrate business planning and estate planning if you’re working in the estate planning arena and vice versa.

As a brokerage manager working with many producers who don’t want to add new concepts to their practice, it’s painfully clear that they are missing out on opportunities for making sales that meet client needs.

If you’re a producer assisting small business owners with their business planning, why not cross sell into their personal and estate planning concerns. Why put your clients at risk by making it possible for them to speak with someone who is prepared to integrate all aspects of their insurance requirements? At a time when producers are looking for more business, it’s wise to make sure you are the “single source provider.”

Many life producers have long complained that life insurance companies’ products were lacking when it came to helping clients meet the challenges of lifestyle and economic changes. For the most part, the complaints were on target. But now that has changed. Insurance companies are making cross selling easier than ever with products that satisfy several needs.

This is not to suggest that producers should abandon talking with their clients about the value of the traditional Annuity, Disability Income or LTC plan. However, it is to point out that far too many producers are walking away from both serving their clients’ best interests and, at the same time, potential sales.

Cross selling is really just another way to describe what producers do best. And that’s problem solving. Fortunately, there are products that make the task easier and more beneficial for our clients.

Justin M. Jurs is a brokerage manager with First American Insurance Underwriters, Inc., based in Needham, Mass. He has extensive experience in long-term care, annuity and life insurance product sales and with working with producers. He can be contacted at 800-444-8715.

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