Policy Review: The Key to Client Loyalty

Many clients view their life insurance policy as a ‘set it and forget it’ affair.  After some time spent with their advisor crafting a policy to protect their loved ones and their legacy they simply go about living.  Unfortunately, far too many advisors treat their policies in the exact same way.  Once the sale is done and the policy is in force, they don’t truly consider it again as long as the premium payments continue.  Not only is this a missed opportunity to sell a warm client new business, but it is also a disservice to the client.  Policy reviews are essential for keeping your client relationship close and providing the best client service possible. 

A phone call today could mean more business tomorrow

In reality, your client’s life changes all the time.  They get married, they have children, those children go to college and start their own lives.  As their lives change so too do their insurance needs.  A policy you sold to a client in their 30’s may no longer be sufficient for the life they are living in their 40’s and 50’s.  This is why it is imperative that you develop a relationship with your client that allows you to help them address their new needs as they arise.  The policy review is the first step you need to take to address these changes.  

As I mentioned earlier, most clients forget about their life insurance policy outside of their premium payments.  They go on living their life under the belief that a policy they purchased a decade earlier will protect their loved ones in the event of their passing.  They rely on you to know the ins and outs of their policy and to speak to them about new opportunities and products that could help serve them where they are at today.  The policy review process is your tool to educate them on where their current policy works… and where it doesn’t in their current fiscal and health environment.  The policy review affords you the opportunity to sell more insurance in an effort to provide your client with the best available protection.

a winding river representing the need to change your life insurance policy as your life changes

A change is gonna come: When to conduct a policy review

If you have clients that bought a policy from you a year or two years ago then you should go over their policy and reach out to them today.  A simple check-up call or email to let them know you are still working on their behalf can go a long way towards starting the conversation about where their life has taken them.  Ask them if there have been any significant changes to their situation since you last spoke to them.  

Have there been any changes to their:

  • Income
  • Family
  • Relationship
  • Health
  • Mortage

Any and all of these can have serious implications concerning their current coverage.  Maybe they recently quit smoking, lowered their blood pressure, and started living a health-conscious lifestyle that might save them precious premium dollars.  Or perhaps they were promoted at work or had success in a new business and require more coverage than their older policy provides.  

The purpose of a policy review goes beyond ensuring that their life and their policy are on the same page.  It is a matter of developing deep and meaningful relationships with your clients.  The more you learn about your client, the more opportunities you will be able to share with them.  Going a bit further for your client will create trust and loyalty.  Perhaps you have sold a policy for them but not for their spouse.  Their children will need life insurance at some point in the future.  Who are they more likely to buy from?  An insurance salesman that their parent spoke to once or an advocate that their parent knows well and refers to them? 

Before the call, perform an investigation on the policy itself

Review your client’s policy so that you know it inside and out.  Look for common mistakes such as:

  • Are the beneficiaries current?
  • Is it tax-friendly to their estate?
  • Are there better solutions today that didn’t exist when the policy was written?

Take your questions and your findings into the review process.  When done correctly, a policy review can save your clients money and provide them with more appropriate coverage.  Your client will appreciate the time you’ve taken to help keep their affairs in order. 

an antique telephone representing the need to call your clients to perform a life insurance policy review

It is always worth the conversation

Your client relies on you for your expertise.  Keeping your client close and caring about their coverage means conducting regular policy reviews, checking in with them about how their life is going, and consistently communicating new products that could best serve them today.

Rocky Mountain is happy to help you review any policies and find better solutions for your clients.  Together, we can ensure that the policies you sold yesterday help your client thrive tomorrow.