19 minute read
3 Simple Steps To Creating Lasting Relationships
Figuring out where clients want to go and how close they are to their goals is key to earning trust.
By Stephen Kagawa
You probably know that creating lasting relationships with the people you advise will turn them into long-term clients. Not only that, but they’ll be more likely to heed your advice, they’ll probably find greater financial success, and they may end up referring their friends and family to you.
Did you know there’s a way to go from closing 20%-30% of your cases to creating lasting relationships with nearly everyone who engages with you? All you need to do is follow three simple steps, and the good news is you can start right away. Let me show you how.
1. Learn To Listen
Your first responsibility to people who seek your counsel is figuring out where they want to go in their lives, and your second responsibility is learning where they are relative to where they want to go. What’s important to them about how they enjoy their retirement? What’s important to them about the kind of legacy they leave?
Be truly interested in people and accomplish this important task. Learn to be a good listener.
If you care about people and listen to their stories, they’ll keep sharing more and more with you. The more they talk, the closer you’ll get to wherever it is they want to go.
Along the way, they’ll begin to trust you because you’re listening and seeking to understand them. You’re not judging. You’re not focused on your opinion or limited by your biases — you’re only trying to learn theirs — and this makes them feel appreciated and understood.
People want to tell someone about their hopes and their worries and their dreams and their fears. The more you seek to understand these things about your clients, the more you will understand and the more trusting will be the dynamic you’ll achieve with those who seek your counsel and guidance.
Focusing on your product is the obstacle that gets in the way of that happening. Your prospects need to feel understood before they can trust you enough to allow you to guide them.
2. Keep An Open Heart And A Quiet Mind
When I speak with prospects and clients, I keep this in mind: Keep an open heart and a quiet mind. “Keep an open heart” means to listen with love and gratitude. Take in this person’s views, opinions, cares, judgments and hopes and all that’s of importance to them. Just listen.
“Keep a quiet mind” means not allowing personal biases, opinions or judgments to interfere with thinking. Seek to do the right thing by this person; learn to understand them, even when you do not agree with them.
This takes time to master. We’re accustomed to letting our biases affect the stories we hear. We’re accustomed to thinking too much about what we care about instead of considering what others
5 Core Values
—————————————— of—————————————— Aloha Advising
1. Mahalo - “Thank you.” With Mahalo, you are grateful for the people in your life, and you appreciate your differences, too. 2. Aloha - “Hello” or “good-bye.” Seek to live and work with love. 3. Ohana - “Family.” Treat others the way you would treat members of your own family. 4. Pono - “Do the right thing.” Your good intentions in your plans and actions will reflect your desire to do right. 5. Imua - “Always move forward.” Keep learning and continuing to grow.
Source: From Aloha Financial Advising: Doing Good to Do Better for Your Clients and Yourself by Stephen Kagawa, 2021, Lioncrest Publishing
care about. Our experiences, thoughts and ideas like to raise their voices. Unless the story we hear is exactly like ours, we don’t see it for all its beauty.
How often is another person’s story exactly like mine? Never. We seem so similar on the surface, and we can be so different at the core. So I train myself to keep an open heart and a quiet mind.
3. Prepare For Them, Not For Yourself
We’re often told what we’re supposed to sell and how we’re supposed to sell it. At the end of the day, though, what’s most important is finding out what matters to the people we serve. Discover what’s important to them and let go of everything else that you know.
When I began my career in financial advising, proper preparation for every meeting was everything. I had to have the right portfolio of materials and array of products and the right legal forms, and I had to understand all the tax codes, regulations and more.
I still believe in being prepared, and I study constantly to keep up with those things. Bringing a lot of materials to an initial meeting, however, isn’t necessary or even important to me today.
If a prospect says they want specific information on a specific product or topic, of course I show up prepared to discuss it with them. Still, I don’t prepare the way I used to. I don’t show up for an initial meeting with the intention of necessarily presenting a prearranged set of sales concepts or selling them any specific product.
Today, my preparation is much simpler. I take a moment to tell myself why I’m meeting with this prospect. You can call it a prayer, or a meditation, or anything you like. Basically, it’s a reminder to myself that this isn’t about me.
I remind myself that I’m blessed with the opportunity to meet this unique person and learn of the life they seek, and I ask for the strength and the resolve to know that the true guide of how I may add value is within the person in front of me. Their lives, and what’s important to them, will guide us to the right answer for that person.
Start Doing This Today
Preparing this way takes very little time. Still, you must train yourself to do it, and you’ll need practice to do it well.
This method works anywhere, anytime and anyplace in the world. Try it for your next call with a prospect. The first time you do, feel free to bring everything you typically would and leave it all in your briefcase. Let a notepad and pen be your tools, along with your eyes, ears, questions, and your attention to the person in front of you.
Be intentionally present for them. They’ll tell you everything you need to know — and my guess is you’ll find that it becomes the start of a beautiful and lasting relationship.
Stephen Kagawa is CEO of The Pacific Bridge Companies, an organization comprised of various international firms spanning the U.S. and Asia that helps financial advisors guide their clients wherever their lives may lead. He may be contacted at stephen.kagawa@innfeedback.com.
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Inspiration Shifts As The World Adjusts To The Pandemic
An advisor finds an additional source of purpose as COVID-19 forces her to change the way she runs her practice.
By Janet N. Ng
Our decisions that spring from inspiration or motivation are what build a strong foundation for success, especially in self-driven work such as financial services. When we are ultimately responsible for so much of our own professional progress, it’s important to be anchored by a day-to-day sense of purpose.
For some people, those anchors might remain constant over time. But for many — myself included — they shift as careers and life change. If there’s anything that the COVID-19 pandemic has taught us, it’s that those shifts are not only OK — they’re normal. And just as we must be ready for our life circumstances to change, we also must be ready to change the way we use them to propel our professional success.
Adapting To Involuntary Change
When COVID-19 cases first arrived, we had three days’ warning before a national lockdown took effect in the Philippines. Needless to say, 72 hours to prepare for such an indefinite, drastic shift did not offer much time for many Filipino businesses to adjust. Like many people, I began the lockdown by temporarily not working.
I also faced another dilemma: Before the lockdown, I thrived in an environment where I could be physically present with my employees and meet with my clients in person. Those direct interactions gave me my purpose. So with that environment no longer possible, I was forced to find new reasons to go back to work and keep my practice going.
In considering my broader professional purpose, I realized that what I wanted more than anything was not only for my clients to know their policies and protections were still in force, but for them and my employees to know that I was personally still there as well. Not only would I still be available, but I would also seek better ways to serve my clients and grow my practice. As an advisor, I was committed to adapting to the world around me, even through a change as sudden and severe as a global pandemic.
As I first started back to work, I drew on this new motivation to help my team and clients get through the pandemic together. To offer a more responsive experience for clients, we placed each person into their own end-to-end encrypted group chat with me and my staff. I also decided to go bold and expand my client base. I hired a freelancer to find prospects online. After his contract with me ended, I hired him back as a scheduler to proactively coordinate with clients and ensure all clients regularly heard from me.
Changing Your Own Direction
These changes were well received and improved the communication between my office and my clients. But they also resulted in burnout after months of virtual communication, changes to both my personal and professional lives, and constantly trying to think of new ways to grow my practice. Even the tools I had been so inspired to deliver did not provide enough inspiration of their own to keep me going. With work from home likely to be the norm for some time to come, I needed to find another source of purpose.
My children have always been my inspiration to work hard. But with all my children soon to be overseas for work or school, I will have much more time on my hands and nobody to take care of. As someone who went from being a daughter in a traditional Chinese-Filipino household to a wife and then to a parent, this will be a huge shift for me. Although I have always been a woman who charted her own path against some traditional norms, this change will give me a level of personal freedom I have not had in a long time.
In recent months, I have drawn motivation from this expanded ability to choose my direction in life. And unlike the changes COVID-19 forced on me, these are ones I’m actively seeking out.
I recently decided to start a book club for the alumni of a Philippines-based wealth management learning and accreditation center. This addition to my career has allowed me to deliver top-quality service to my clients, while also helping other financial advisors do the same. I have also been offered a position on the Life Happens Global Committee, giving me even more space to help my fellow advisors grow in their careers. Former MDRT President Regina Bedoya has, in turn, been a huge source of encouragement and support for me these last few months, helping me push through a lack of self-confidence.
Whether change comes for us or from us, our lives and careers are always evolving. By being ready for momentous shifts, we as advisors can take the first, most important step to identifying new sources of inspiration that can take our careers in directions we had never before imagined.
Janet N. Ng, FChFP, CEPP, CWP, is the executive director of Bridges-PH. She is a 12year qualifying and lifetime member of MDRT. She may be contacted at janet.ng@innfeedback.com.
Serving Clients’ Best Interests Means Political Involvement
Why political advocacy leads to laws and regulations that benefit your clients.
By Mike Peters
The longer I’ve been an insurance and financial services professional — and I’ve been a producer for more than 30 years and was in operations for about 10 years before that — the more I’ve come to realize how political advocacy is crucial to my success and is an important part of serving the best interests of my clients.
Our advocacy influences legislation created and passed by lawmakers, at both the federal and state levels. This legislation directly affects how we as insurance and financial advisors do business and even whether we can do business.
I serve a mostly middle-income clientele in the Tampa-St. Petersburg area of Florida. My clients rely on the products and services I provide to improve their financial well-being, protect themselves against life’s inevitable financial risks, prepare for comfortable retirement, and create financial legacies to leave their loved ones.
When I speak with regulators or legislators about issues that affect my business, those same issues affect the Main Street Americans I serve. I’ve come to believe that representing their interests goes beyond creating great financial plans to include influencing public policy on their behalf and ensuring I can stay in business to continue serving them.
Making A Difference
The importance of being politically involved really hit home early in my career in 1992 when Hurricane Andrew devastated much of Florida, causing more than $25 billion worth of damage in my home state.
At that time, property/casualty insurance made up 25%-30% of my business, and politicians were putting the insurance industry under intense scrutiny. Some insurance companies considered getting out of the P/C business in Florida, and their professional lobbyists weren’t making much headway in Tallahassee or Washington.
I had been a NAIFA member for several years, but this was when I realized that when it comes to advocacy, there really is strength in numbers. My NAIFA colleagues and I contacted our legislators and showed them how we really were making a difference in the lives of families and business owners impacted by Andrew. We needed laws and regulations to help us do our jobs, not make them more difficult. More important, that’s what our clients needed.
That experience really opened my eyes. I understood that a few people in key positions in legislative bodies can have a major impact on my livelihood and the well-being of my clients. And we, as insurance and financial professionals, can make an impact on those key decision makers.
Advocacy Is In My Job Description
Over the years, I have talked to other agents and advisors who say they want to stay out of politics or that they are intimidated by the political process.
I tell them I’ve come to understand that we must be part of the discussion. There’s an old advocacy saying: “If you don’t have a seat at the table, you may very well be served up on the table.” Other professionals are advocating for their businesses; it’s part of my job to do the same for my business and my clients. If what I do is beneficial to my clients, and I strongly believe that insurance and financial planning is a very noble calling, then ensuring that I am able to continue providing people with financial security ranks pretty high in my job description.
It’s true that a first meeting with a legislator can seem intimidating, but you quickly learn that our elected officials are people just like you and me. But there’s one major difference: They don’t know nearly as much as you do about your clients’ insurance and financial services needs or about how the products and services you provide make your clients’ lives better. We are the ones who can tell compelling stories about how legislation affects the families and small businesses we work with.
The vast majority of lawmakers want to hear our stories and learn how they can help our clients in their districts. They got into public service to make a difference on behalf of people in their communities. They want to help. If you think about it, that’s not much different from what we do, and many of us have a similar motivation.
Taking The Next Step
For me, political involvement has become a professional and personal passion. I have gone from attending a few group meetings with legislators to creating meaningful relationships with lawmakers to serving in advocacy leadership positions with NAIFA. Within the last year, I was elected to the city council of New Port Richey, Fla.
I’ve always had a yearning to serve. Political involvement opened my eyes to how leaders can change things and impact people. It has given me an understanding of the legislative process and the importance of listening to both sides of issues. By advocating with NAIFA, I have given back to my industry and helped ensure consumers have greater flexibility and more financial services choices. As an elected official, I am trying to give back to my local community and come up with solutions that serve most of the people most of the time.
I hope my example might influence other insurance and financial professionals to get involved.
Mike Peters, CLU, ChFC, LUTCF, owns a State Farm agency in New Port Richey, Fla. He currently serves on NAIFA’s Government Relations Committee and is the national Grassroots Involvement Chair. He may be contacted at mike.peters@ innfeedback.com.
More consumers expressed interest in purchasing life insurance with long-term care benefits as COVID-19 forced people to think about how they want to receive care in the future.
By Austin Tewksbury
The 2020 pandemic affected consumer interest and awareness of financial products in many ways. LIMRA’s consumer sentiment survey showed increased consumer concerns related to financial security and an increased interest in life insurance as COVID-19 made the risk of illness and mortality top of mind for many. Interest in combination life insurance/long-term care products, which are a solution for consumers’ life and long-term care needs, also increased during the pandemic.
In early 2021, 26% of consumers were extremely or very likely to consider a combination product when shopping for life insurance — up from 17% only two years ago. This jumps to 36% of people who are facing high levels of stress as caregivers, either for adult relatives or for children. These consumers recognize better than anyone the value of planning ahead for long-term care needs.
We were surprised to find that interest in these products decreases with age. Millennials are the most likely to consider combination products. This group probably finds the concept of a one-stop solution to life and long-term care needs appealing. They also are less likely to own life insurance, and many in this generation and in Generation X are part of the high caregiving stress group “sandwiched” with young children at home and older relatives who may need care.
The expense of long-term care and the desire for an economical form of coverage are key reasons consumers are interested in combination products. Among respondents who were at least “somewhat” likely to consider these products when shopping for life insurance, 35% cited concerns that long-term care costs would deplete or exceed their savings, and 33% thought combination products would be a more economical use of their current assets.
When asked about the attractiveness of particular features of long-term care coverage, the second-most widely valued feature was the ability to lock in premium rates that will never increase (cited by 41% of respondents).
Above any other feature, consumers valued the ability to choose to receive care either at home or in a facility (43% of respondents). Overall, consumers would prefer to receive care at home, with 31% responding that they would prefer staying at their own, a family member’s or a friend’s home to receive care regardless of the costs or level of care needed. An equal percentage would prefer receiving care at home until transitioning to a facility as needed based on cost or care needs.
Millennials showed the strongest preference for the option of staying in their homes before transitioning to a facility, while baby boomers and Gen X consumers were more likely to prefer exclusively at-home care. Just over 1 in 5 respondents
Percentage Who Would Consider Buying A Life Combination Product (By Generation)
Source: Consumer Perspectives on Long-Term Care and Insurance, 2021
were not sure of their preference, though 25% of Gen X consumers were uncertain. These consumers may have still not yet felt the need to plan for long-term care, and they are just beginning to take on caregiving responsibilities for their parents (something baby boomers may have already experienced).
Even in the midst of the COVID-19 pandemic and its severe impact on nursing homes, the majority of consumers preferred in-home care for comfort as opposed to safety concerns. Three out of four people who preferred to receive long-term care at home (exclusively or until transitioning to a facility) agreed “it would be more comfortable,” while only 42% were concerned with the safety of assisted living and skilled nursing facilities. This result reflects some optimism among consumers back in January that long-term care facilities would remain a safe choice in the future. And even so, the comforts of being at home can’t be overvalued.
Austin Tewksbury is associate analyst, product research, for LIMRA. He may be contacted at austin.tewksbury@innfeedback.com.
