Advisors Who Prepare More Financial Plans Produce More Life Insurance Revenue


For decades banks and credit unions have struggled to profitably meet the life insurance needs of their clients.

The DoL Fiduciary Standard rule for retirement accounts increases the need to improve life insurance sales, because firms are looking for ways to replace revenue impacted by lower fees and commissions.

But selling life insurance just got even harder. Our last Highlighter provided evidence that additional compensation incentives no longer seem to work. And they might not be permissible anyway under the DoL Rule.

Fortunately, there is another tool that firms can use to drive life insurance business — financial planning.

Kehrer Bielan research finds that advisors who prepare more financial plans produce more life insurance revenue.

Advisors in firms where advisors create one or more plans a month produce life insurance revenue that is 18% higher than advisors who generate less than one plan per month.

That is a particularly useful synergy, because Kehrer Bielan believes that firms need to embrace financial planning to differentiate themselves in a post-DoL world where most firms are offering a narrower range of similar products with the same reasonable fees.

We’ll be discussing how to get advisors to incorporate planning into their practice and boost life insurance sales at our special DoL-focused roundtable discussion group for executives responsible for managing investment services in financial institutions. The discussion will be fueled by our latest research, and tempered by the collective experience of the participants.