Advisor Today - March/April 2016 - (Page 8)

from the editor By Ayo Mseka Thriving in the Middle ADVISOR TODAY H ave you sometimes wondered if it is worthwhile to continue pursuing the middle market? If you have, a new LIMRA study will help banish those thoughts forever and persuade you to keep on serving the group of consumers who benefit the most from your financial expertise. According to the study released late last year, middle-market households own the majority of individual permanent life insurance-the product that anchors almost all of the financial products and services you sell.  Once thought to be primarily bought by the affluent, households at all income levels now own permanent life insurance, with the middle market leading the way at 57 percent, according to LIMRA. With its large size-estimated at 52.3 million households and counting-the middle market offers lots of prospects for you to serve. Success strategies But selling to this group is not an easy task, as most of you know. Your first step is to gain a sound understanding of them so that you can identify exactly what they need from a financial advisor. According to LIMRA, many middle-class consumers want financial professionals who are willing to listen to their needs and respond appropriately, will take the time to educate them and explain the various financial products and services to them and will evaluate their life insurance needs and coverage amounts. You will also make significant inroads into this potentially lucrative market if you adhere to some of the rules for success identified in NAIFA's Advisor/2020. As this groundbreaking study aptly points out, to effectively sell to the middle market, you need to: * Serve as a credible and independent source of information and advice and be fully engaged in educating them about simple steps to address their long-term goals. * Carefully craft your messages to engage these clients. Research by the Center for Retirement Research found that people are more likely to engage in financial planning when they have a positive goal, such as to sustain a quality of life, than when they have a negative goal, such as avoiding financial disaster. * To be most effective, you must be easy to access on demand, and consumers will need to hear from you multiple times. This is one reason why delivering educational sessions is a good strategy for middle-market audiences. * You will also benefit from using a multipronged communication strategy to provide financial education and information to them through different channels and media resources. * Given the middle-market's lower overall savings rates, you need to work with a significantly larger client base to generate the same amount of protection coverage and investments as their more affluent counterparts. Serving the middle class often requires a lot of hand-holding, and the selling timeline is usually long and sometimes arduous. But as the LIMRA report illustrates, it affords you the opportunity to help a group of people who desperately need your help-and to come out ahead while doing so. Editor-in-Chief Ayo Mseka; amseka@naifa.org 703-770-8204 Publication and Circulation Coordinator Tara Laptew; tlaptew@naifa.org 703-770-8207 NAIFA Kevin Mayeux, Esq., CAE, CEO kmayeux@naifa.org; 703-770-8101 Diane Boyle, SVP, Government Relations dboyle@naifa.org; 703-770-8252 John Boyle, AVP, Professional Development & Education jboyle@naifa.org; 703-770-8267 Seth Ewing, AVP, Corporate Outreach sewing@naifa.org; 703-770-8217 Magenta Ishak, VP, Political Affairs mishak@naifa.org; 703-770-8152 Lacey Blank, AVP, Membership Marketing and Association Services lblank@naifa.org; 703-770-8221 Jennifer Cassidy, Acting VP, Finance jcassidy@naifa.org; 703-770-8125 Michael Gerber, General Counsel & VP, Human Resources mgerber@naifa.org; 703-770-8190 Sheila Owens, VP, Communications and Marketing sowens@naifa.org; 703-770-8112 Diane Powers, VP, Professional Development and Education dpowers@naifa.org; 703-770-8226 Mark Rogers, VP, Information Services mrogers@naifa.org; 703-770-8130 Brian Steiner, VP, Business Development & Strategic Partnerships bsteiner@naifa.org; 703-770-8220 Gary Sanders, Counsel and VP Government Relations gsanders@naifa.org; 703-770-8192 Yasemin Washington-Brown, VP, Membership Marketing and Association Services ywashingtonbrown@naifa.org; 703-770-8219 PUBLISHED BY 5950 Northwest First Place Gainesville, FL 32607 Phone: 800-369-6220 Fax: 352-331-3525 Web: www.naylor.com Publisher: Heidi Boe Editor: Christine Cusatis Project Manager: Douglas Swindler Publication Director: Janet Frank Marketing: Kaydee Currie Advertising Sales: Paul Walley, Matt Wooten Layout and Design: Deb Churchill Basso | Print 2.0h! Published March 2016/NAI-S0216/2745 © 2016 Naylor, LLC. All rights reserved. NAIFA's Advisor Today (ISSN 1529-823X) is published bi-monthly by the National Association of Insurance and Financial Advisors Service Corporation, 2901 Telestar Court, Falls Church, VA 22042-1205. Telephone: 703-770-8100. Periodicals postage paid at Falls Church, VA, and at additional mailing offices. POSTMASTER: Please send all change-of-address forms to: Advisor Today Data Processing Department, Membership Administration, 2901 Telestar Court, Falls Church, VA 22042-1205. © 2016 National Association of Insurance and Financial Advisors Service Corporation. All rights reserved. Subscriptions: The annual subscription rate for individual non-NAIFA members is $50; institutions, $60. The international subscription rate for non-NAIFA members is $100 per year. Single copies and back issues: Single copies and back issues are $8. Both can be ordered by calling 703-770-8207. Reprints: Reprints of articles are available through Naylor, LLC. Please visit www.naylor.com/ index.php/client-support/ and click on "Article Reprints" under "Advertisers" in the left-hand navigation bar. NAIFA's Advisor Today articles do not constitute insurance, financial, investment, tax, legal, accounting or other professional services by the publisher, NAIFA, or the articles' authors. The facts and opinions in NAIFA's Advisor Today articles represent their authors' views and are not necessarily endorsed by the publisher or NAIFA, unless indicated. While NAIFA's Advisor Today tries to provide accurate reporting, the accuracy of the information in NAIFA's Advisor Today is not guaranteed. NAIFA's Advisor Today reminds readers to ensure that the manner in which they sell insurance and other financial products, and the advertising and sales materials they use, comply with state, federal, and FINRA/SEC requirements, and the compliance rules of the insurance and other financial services companies they represent. If in doubt about compliance issues, check with your company. The publisher and NAIFA disclaim all liability for claims or damages that may result from errors in the magazine. NAIFA's Advisor Today will attempt to correct material errors brought to its attention through appropriate errata. The publisher and NAIFA do not endorse the advertisers in NAIFA's Advisor Today, or the advertised products and services, unless indicated. The publisher and NAIFA have not assessed the accuracy of any advertisement or the quality of any advertised product or service. The publisher and NAIFA disclaim all liability for claims or damages that may result from transactions with NAIFA's Advisor Today's advertisers or from the purchase or use of advertised products or services. 8 ADVISOR TODAY | March/April 2016 http://www.naylor.com http://www.naylor.com/

Table of Contents for the Digital Edition of Advisor Today - March/April 2016

From the Editor
Viewpoint
New Products
A Question of Ethics The Details Often Make the Difference
What's Ahead for Financial Advising?
Whos's Saving the Most and Why?
Making the Case for Critical Illness Insurance
Are You a Retirement Expert?
Selling the "Best Plan"
Smooth Sailing
Taking Incremental Steps Toward Success
Investment Strategies for Today’s Consumers
How Tax Efficient is Your Investment and Retirement Portfolio?
Naifa News
Ideas for a Profitable Practice
Crossing the Two Client Relationship Bridges
Working with Muslim-American Clients
Attracting and Serving Today's High-Net-Worth Clients
Becoming a Networking Success
Advertiser Index
Back Page

Advisor Today - March/April 2016

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