LIFEinsurance is a particularly valuable resource for the self-employed. Life insurance can protect your family as well as your business too. As a business owner, you can use your policy to insure the security of your business and your family.

Cover your debts
As the sole proprietor of a business, it is likely that you are also entirely liable for the debts assumed by business endeavors. In the event of your death, you are still held accountable for any business liabilities.

If you do have substantial business debt, and you have no life insurance for the self-employed, your personal assets will be liquidated in order to satisfy these financial responsibilities. Without some type of protection, you run the risk of leaving your family with nothing.

To ensure the future of your business, you should consider for purchasing a permanent life insurance policy as part of a small business plan. Your death benefit should be large enough to cover all your business debt and provide necessary funds for the future success of your business as well as your family.

With this protection, you can rest assured your business will not drive your family into debt after your death. Instead, there will be ample funds to settle your business debts so the business can flourish as it did under your direction.

Protect your co-owners
As a business co-owner, purchasing a life insurance policy on each of the key employees is a good part of a small business plan. The beneficiary of these policies should be the business itself and should cover the cost of finding a suitable replacement for the loss of an exceptional business partner.

Although it is difficult to imagine the effect the loss of one person can make in the success of a business, such occurrences often result in slowed production and reduced earnings. Having extra funds to finance the search for a new knowledgeable business partner, make up for lost profits, and weather the possible tough transition is crucial for your business. To avoid this, we recommend purchasing a permanent life insurance policy naming the business as the beneficiary of the death benefit.

Other advantages
Life insurance can also fund a buy or sell business agreement. These arrangements benefit the family of a business co-owner in the event of their death.

In essence, it is a contract between the business owners to purchase a co-owner’s portion of the company at certain price if the co-owner dies. Often these agreements are funded with a life insurance policy. The proceeds of the policy are used to buy out the deceased's share of the company.

There are several types of buy sell agreements which may vary in who have purchased the policy for example, the corporation, the owners, or a trust.

FOR MORE ARTICLES- www.savetaxindia.blogspot.com

When you’re looking to purchase insurance you will have many decisions to make. Choosing an agent is one decision that you must consider. Beyond the usual consideration there is one that is often over looked and many times not consider at all. The consideration is should you use a captive insurance agent or an independent insurance agent? You may be asking the questions “what is a captive agent?”, and “what is an independent agent?” But the biggest question is “why should this be a consideration?”



The term “captive agent” refers to the agents working relationship with the company he or she represents, and the same for the “independent agent”. A captive agent has an exclusive relationship with the company he or she represents. The company mandates that the agent only sells the products offered from that company only, for the privilege of working under their name. An independent agent has no exclusive relationship with any company he or she represents. The agent is free to choose the product he or she will sell and the company he or she will sell for.



Before we look at the question of “why should you consider one type agent over another?” let us look at the way agents get paid. All agents have some form of commission pay. New agents generally start out with a combination of paid and commission while the veteran agent is generally a full commission agent. Insurance agent must consider what company will give him or her best chance to earn a living. Most agents look to work for big name companies because working for a big name company may offer them more opportunity to make a sale and get a commission check.



That said; now let’s look at the biggest question why should you consider what type of agent you use? The reason comes down to two more questions. The first question is about family, and the second question is about trust. The question about family is this, when the agent is presenting you with a product who’s family does he or she have in mind? The question of trust is a personal one for you as the client. When you look into the agent’s eyes do you trust that what is being offered is what is best for your family and not the agents?



Independent agents generally have a wide variety of products and companies. This variety is good for the client and the agent. The client has a better chance to find a company that can fit exactly what they need, the client can shop for the best price, the best company rating, and the best product without having to go or call company after company. The agent can look for what is the best product for this client and not feel pressure into selling anything that is close to what the client needs.



There are many more facts to consider when choosing your agent, however don’t leave this consideration out. It may be the most important one of all.

Many agents wrongly assume that referrals are automatic—the inevitable by-product of great service.

Reality: Even if they’re happy with you, they’re still unlikely to suggest your services to others. They’re busy, distracted and unaware of the power of their own recommendations.

Still, if you’ve provided a good experience for a client, he or she will likely be happy to refer you to others; it’s human nature to want to share a good experience. They just need to be asked—and that’s the part that gets tricky. And awkward.

“Asking people for referrals is right up there with asking your friend to come to church with you on Sunday. It's downright uncomfortable,” says David Frey, president of Marketing Best Practices Inc.

Persistent asking can also be off-putting: It can imply that the person has nothing better to do than shill for your benefit.

People like giving referrals; it’s human nature to want to share a good experience.

Ray Silverstein, a sales columnist for Fortune magazine, has a different point of view. “Don't feel sheepish about asking for referrals; there's nothing pushy or smarmy about it,” says Silverstein.

“Let your customers know you prize referrals, which you'll earn by providing excellent quality products and services.”

OK, maybe there’s no reason to be sheepish, but Silverstein loses a lot of credibility with this tip:

“When you begin working with a new customer, make referrals part of your initial agreement. ‘If I do a great job for you--and I will--you agree to give me X number of referrals.’ Chances are your customer will be impressed by your dedication and drive.”

I can’t think of a worse idea.

There may be an occasional client who responds positively to this approach, but most will be offended at the suggestion. After all, customers expect good service for their money, and they’ll bristle at having to pay extra for something they assume is already included.

Frey promotes “transaction-based referral systems,” in which referrals are solicited in a more passive yet potent manner by mail or e-mail. An essential characteristic to these systems is making it easy for the client to spread the word. (Remember: Your clients are typically as busy as you are; the more difficult is it for them to recommend your services, the less likely it is that they will do so.)

One of the great things about the information revolution has been the promotion of sharing—be it a favorite clip on YouTube, a fiery op-ed in the Times or a random thought on Twitter. It’s not that people didn’t share before; the difference is that digitized information is much easier to share than any other kind.than it is to call eight of your friends. In our case, people find it easier to use SAVETAXINDIA to get a few free quotes than to open the Yellow Pages and start dialing away.

In an age when more and more transactions occur via direct mail and the internet, it becomes easier and less invasive (not to mention less awkward) to create and implement a transaction-based referral system that does not require face-to-face interaction. What’s more, many people who use the internet use it precisely because it requires less interaction with insurance agents. (Sad but true.)

When it comes to generating referrals, there remains another significant barrier: a lack of incentives. While many of your clients don’t necessarily need a reward for spreading the good word, they’re much more likely to make spreading the word a priority when there’s something in it for them.

For example, to encourage the agents on our network to refer us to other agents, we offer a referral reward program, in which the referring agent gets a percentage of whatever the new agent spends with us.

Conclusion There is certainly a good argument to be made for the old-fashioned, face-to-face approach to getting referrals, but smart agents today realize that many people are more receptive to less invasive measures and will respond positively and with more vigor to incentives.

Here at SAVETAX, we know the challenges that insurance professionals face every day. To help you avoid some of the common mistakes of agents nationwide, we've put together a list of four pitfalls to avoid—and keep you on the smooth road to success.

Pitfall #1: Not taking advantage of the Internet

Let's face it: the Internet has changed the face of business in recent years and the insurance industry is no exception. In fact, according to a 2005 study by Forrester Research, 28 percent of consumers consult the Web at some point in their process of shopping for auto insurance.

With that number purported to rise in years to come, here are three ways you can capitalize on these trends now:

Develop a Website.
With more and more consumers turning to the Internet to find insurance, developing a Web site to represent your agency is a no-brainer. Essentially, you can use your Web site to gain visibility online—a crucial factor in reaching online insurance shoppers.

To get the most out of your site, you may wish to incorporate relevant articles, rate comparison charts, virtual tours, a history of your agency and any professional or personal information you wish to disclose about yourself. The goal here is to familiarize the consumer with you and your business.

Today, Web sites are fairly easy and cost-effective to start up.

Create a Blog.
In addition to your agency Web site, you should consider creating a weblog, or blog.

Blogs gained public awareness during the 2004 presidential elections, as an outlet for journalists and political analysts to express opinions and other commentary. Today, they are used to publish a journal, record of events, ideas or whatever else the author chooses. Used for business, blogs can be used to show your individuality and build discussion around your company and professional interests, thus connecting you to consumers and other insurance professionals—taking networking to new heights.

How can a blog help your business? Firstly, search engines love Web sites that are updated often and tightly focused on one or two subjects—causing your blog to move up quickly in search engine rankings. Secondly, the higher your site's ranking, the more visitors will come to your blog, increasing your visibility and attracting potential clients.

You can take your blog to the next level by incorporating insurance anecdotes, shopping tips, saving tips, new ideas and checklists—the possibilities are endless. Find Blogger.com to launch your company blog.

Partner With an Online Referral Service. With more and more consumers turning to the Web to service their insurance shopping needs, it's no surprise that more and more agents are turning to online referral services like SAVE TAX to purchase insurance leads—connecting them with consumers who are serious about buying a policy.

For more on what insurance leads can do to your business, read our article, What Great Agents Know About Insurance Leads and visit the SAVE TAX site!

Pitfall #2: Not cross-selling into other areas

While agents of times past often specialized in one or two kinds of insurance, today's agents are cross-selling into other areas of insurance—and gaining more clients because as a result.

Offering multiple lines of insurance provides a convenience to your clients and allows you to sell more polices. Add to that a variety of financial products, and your clients will never have to go anywhere else to service their insurance and financial planning needs.

It's important to understand that additional licensure may be needed to sell other types of insurance, and separate licenses may be required to sell financial products. For more details on requirements, contact your state's department of insurance.

Pitfall #3: Letting customer service fall by the wayside

Just because more consumers are logging on to shop for insurance doesn't mean they don't want to feel taken care of. To meet consumer needs, many insurance agents are turning to call centers and help lines, available to clients 24 hours a day, seven days a week. Many agents are also hiring customer service representatives to handle consumer questions, file claims and make alternations in policies.

By implementing call centers and hiring customer service help, agents are free to seek new clients and maintain relationships with old clients—developing a satisfied clientele that will expand for years to come.

Pitfall #4: The absence of goal-setting

Most successful agents agree: Challenge is good for growth. To challenge yourself and expand your business, it's important to set goals. Quantifiable and measurable in nature, your goals should also be specific and realistic.

Not sure what kind of goals you should set? Here are some examples given from successful insurance professionals:

Talk to 15 prospective clients every day
Post five blog entries per week
Catch up on industry news one hour per day
Call and check up on ten clients every week

Starting with small goals is the best way to tackle the larger goals—goals like increasing sales dollars or policies sold. Whether your goals are similar to those above or very different, goal-setting is an essential factor in finding success as an insurance professional.

Record your goals once you've committed yourself to them—nothing feels better than scratching an attained goal off your to-do list and it will keep you motivated to reach your next target.


Enjoy Professional Success Today!
Challenges in the workplace are inevitable—but now that you're aware of the major pitfalls facing insurance agents and how to avoid them, you can concentrate on taking your business to the next level!

Get started on yourroad to success by contacting SAVETAXINDIA today.

The insurance industry is competitive, so taking steps to set yourself apart from the rest is imperative.

It's a digital world.

To stand out from all the agents and insurance companies, you need an internet presence. That means, a web site with helpful articles and information about yourself. If you have no web-design skills, hire someone to help you put together a usable site. Seventy-five percent of households shop online. A web site will be your first impression on many potential clients.

Get online leads.

In a recent Agent Media study, agents cited prospecting as the most difficult part of their jobs. Using a lead referral service, like InsureMe, helps you get referrals for your business and allows you to target the leads you receive, so you only pay for leads you can write.

Practice good customer service.

Remembering your clients' birthdays and anniversaries is a good way to keep in touch and score points. But the best time to wow customers is when there is an issue. Handling a customer's problem quickly and professionally is an excellent way to generate word of mouth marketing-the ultimate free advertising.

Becoming an independent agent takes motivation and determination, but can be rewarding in that you are your own boss. Get started on yourroad to success by contacting SAVETAXINDIA today.

While thousands of agents enjoy success in insurance sales, many have difficulty meeting commission and income goals—and eventually transfer to other careers.

But the experienced, successful agents didn't rely on luck when they started—they achieved success by building a trusting client base, capitalizing on referrals and staying competitive by evolving with industry changes.

In keeping with our goal to help our agents succeed, we at InsureMe have put together some tips for new agents—revealing how the best insurance agents built their businesses from the ground up!

Building Clientele

Acquiring new clients is one of the greatest challenges facing new agents, which is why it's important to explore all possible methods to find clients.

You may wish to try some of the following methods to attract clients:

Flyers
Newspaper advertisements
Door-to-door solicitation
Cold-calling
While solicitation may not appeal to some, those that shy away from these methods do not often succeed. The best way to tackle your apprehensions is to develop a system—and stick with it. You might begin by saying, "I will talk to 15 people every day," or "I will distribute 100 flyers this week."

Developing a system will help you to set goals and stay motivated, resulting in persistence that pays off—with new clients.

The Importance of Referrals

When it comes to making a sale, it's important that you see each client as the gateway to 10 or 15 additional clients.

Amid insurance professionals, it's not uncommon to hear that the successful agent will sell to one family and then continue to sell the rest of the block. As a new agent, you will want to ask your clients about any friends, relatives or neighbors that may be interested in your services.

As a new agent, you may also wish to receive referrals through lead services like InsureMe. Thousands across the country of agents rely on InsureMe for fresh, qualified leads to connect with consumers who need insurance, giving agents a cost-effective way to expand their business.

No matter where your referrals come from, it's important for new agents to cross-sell into other areas in order to meet the needs of potential clients. If you primarily sell property and casualty policies, this means you will want to become well-versed in life and health insurance. Depending on your state's guidelines, you may need to obtain a second license to sell life and health policies, or vice versa. But remember—the more extensive your services, the better equipped you will be to take advantage of any referrals that come your way!

Staying Competitive

With more and more consumers turning to the Internet to shop for insurance, more and more agents are using the Web to reach consumers. New agents can take advantage by establishing a presence on the Internet through a Blog or company Web site. Incorporating informational articles into your Web site will also appeal to consumers, thus boosting your visibility and credibility.

And, in spite of technological advancements, customer service is more important than ever. As a new agent, you can reach out to your clients by sending them congratulatory postcards after the purchase of a new home, or birth of a child, as well as friendly reminders around renewal time.

When it comes to customer service, remember: a satisfied clientele will lead to referrals, expanding your business in ways you never imagined!

Start Building Your Business Today!

With the rising competition in the insurance industry, it's important that new agents remain persistent and dedicated to success. And, for more information on how insurance leads can boost your business, check out All About Filters!

If you're thinking about becoming an insurance agent, you've come to the right place. Read on to learn what you can do to join the ranks of successful insurance agents across the country!


Training and Qualifications of a Successful Agent

As an insurance agent, you will be responsible for helping individuals, families and businesses select insurance policies to protect their health, lives and property. Typically, agents sell one or more types of insurance, such as property and causality, life, health, disability and long-term care insurance.

But no matter what kind of insurance you wish to sell, there are certain qualifications that make for a successful agent—learning these traits will give you the help you need to launch your new career!

Training

By and large, most companies and independent agencies favor college graduates with degrees in business or economics. But non-graduates should not be counted out. Non-grads may be considered if they have proven sales expertise or previous success in other areas of business.

Regardless of your educational background, if you're thinking about becoming an agent, you'll want to hit the books. Many colleges and universities now offer technical courses about insurance—some even offer a bachelor's degree.

Experience in sociology and public speaking will also work to enhance your sales skills, and experience in computers and software are increasingly important for agents as an educational, communicational and advertising tool.

Start Your Career Today!

Becoming an insurance agent can be an exciting and rewarding experience. Take the first step down the path of success by contacting your state's Division of Insurance for details specific to your state!

Unit linked risk plans are doing roaring business agreed but if the recent reports are any indication a shake up is on the cards. The mutual fund industry is all set to get aggressive to counter competition from the insurance industry’s unit linked risk products. For mutual funds the unit linked insurance products launched by life insurance companies are an encroachment on their territory. Consider this: Around 80 per cent of the premium income of life insurers has come in through unit-linked plans in 2004 thanks to the boom in the equity markets.

Which means mutual fund companies are losing out on a huge market that would have otherwise been theirs. To put an end to such a situation they are toying with the idea of aggressively publicizing its products through celebrity endorsements which mutual funds feel will give a never-before fillip to its unit linked schemes.

Unit linked insurance products launched have been doing brisk business and insurers have been coming out with several such products with slight variations to suit the changing needs of the customers. These products are investment avenues that provide market related returns to the investor with an element of insurance thrown in. For the customer the attraction of market related returns with insurance is an attractive option. On the contrary though mutual fund companies also have unit-linked products what is absent is the insurance cover.

But the grouse of mutual funds is that they have to adhere to stringent regulations that are absent for insurance companies when the products are almost similar. While for insurance companies it is not mandatory to disclose the various expenses related to unit linked risk products such as expense ratio and brokerages among others, for mutual fund companies it is mandatory. The Association of Mutual Funds will soon be setting up a committee to work out an advertising strategy after which it plans to approach SEBI to take it from there. But will SEBI be able to take up the matter with the insurance regulator?

One of the biggest problems many agents, advisors and planners have is setting appointments at their dinner seminars and free educational workshops. Agents are always complaining that they are only able to set appointments with 10% - 30% of the attendees at their events. They'll tell us that most of the prospects don't have their appointment schedule with them, so the can't set an appointment, or they just came for the meal, or they already have an advisor and just wanted to see if there was something new, or they just don't have any money. And, then they'll tell us that out of the few people who do set appointments, over half of them end up canceling, or they just don't show up for their appointments.

Are you having the same problems?

Recognize that the vast majority of the people who attend your seminars and workshops are dissatisfied with their current financial situation and/or advisor! They came to your event because they are looking for real help, from someone they feel they can trust. The reason most agents, advisors and planners are having trouble setting appointments at their events, is they are not connecting with the attendees. And, if there is no connection, people will tell you to your face how great your presentation was, and then they'll make up any excuse not to meet with you.

Believe it or not there are simple ways to immediately fix these problems. Here is what a few agents have said about the secrets we've shared with them....

"Following the advice of your competitors, for my first seminar I spent Rs 16,000 and made Rs 22,000. The second seminar I spent Rs 6,000 and made Rs 13000. Then a few weeks ago I found you. For my third seminar I spent Rs 2800, and so far I've made Rs.55,000. I'll give you credit for 90% of the success I've had with this seminar. I just followed the advice in your system, for my seminar, the initial interview and the closing appointment and I'm making serious money. In just one month I've made over half of what I made in previous years. I'm certainly glad I found you. Thanks," Peter Orange - WA (former commodities broker, and new to annuity sales)

"Lew, I just completed my first seminar using the strategic questions we discussed during our first coaching session. The results were remarkable. At the seminar I had a 90% response on people who have agreed to the one hour complimentary meeting. And, I just had my first appointment and uncovered in excess of $150,000 for an annuity sale. The system works and many thanks for your help." Steve Rogers - OK

"Over the last two weeks I have been holding seminars. Appointment results from the first in my series were lower than normal in the past at just 25% ( I normally will get 40% to 60%). After speaking with you and implementing some of your tips, my results exploded to 90% for the next and 75% for the 3rd seminar! I am amazed that using the same presentation and only asking a few simple questions could transform my appointment request ratio so much. I can't wait to get out and try these strategies on the appointments. Thanks for your help!"
David Hodgkins - NH
There are five critical secrets to setting appointments right at your seminar or educational workshop! By applying these simple techniques you can easily set appointments with 90% of your attendees, and they'll keep their appointments with you!!!

1. First and foremost you must be inviting the right people! Running ads in the local newspaper, or sending out postcards to everyone who is 55 or older, only guarantees you'll fill your seats. The problem is you will generally fill those seats with many of the wrong people. If you want to have the right prospects attend your event, then you must send your invitations to the people who actually need your help, and the people you have the best chance of selling. Your best prospects are generally going to be middle income families... Not affluent people who already have an advisor and don't really need your help. If you are selling annuities you'll want to invite people who are already retired, or are about to retire. (60 to 80 years of age) If you're selling life insurance using the Missed Fortune, College Funding or some other sales concept, you'll want to invite people age 30 to 50, married, with children and own a home. These are the people who already have a need for life insurance, which will make it easier for them to buy into using life insurance as a savings tool.


2. You must make every effort to make an emotional, personal connection with your attendees prior to and during your seminar or workshop! People want to work with people they know and trust. You, or someone in your office, should be calling them to confirm their attendance and then call them two days prior to the event to remind them of the seminar or workshop. You'll want to personally meet and greet everyone as the come in for your event. During your presentation you should make eye contact with everyone, one person at a time. You'll want to make each person feel as if you are having a personal conversation with them sometime during your presentation. Then you'll want to visit with each of them after your presentation, while they are eating, to thank them for coming, ask them if they liked the presentation and see if they have any questions.


3. You must help the attendees to see and understand the financial problems they are facing today and how your information relates to their situation! (it's not about your products, investment returns, credentials, knowledge or being a great speaker) If the prospect does not see and understand they have a problem and how you can help, then why would or should they take the time to meet with you? You must ask rhetorical questions during your presentation. Ask questions that will get the prospect to think about how what you are talking about relates to their situation. You are not looking for anyone to answer these questions. You just ask a question and then pause to let the question sink in.


4. You must speak at a sixth grade level, then even the college professors will understand you. If you use technical jargon, or use big words trying to impress people, you run the risk of making them feel inferior and/or confusing them... in either case they won't set an appointment with you. Or, if they do set an appointment they'll cancel, or just not show up!


5. You must never ask for an appointment. You must give them an opportunity to meet with you. If you ask, or push for an appointment you are a salesperson. If you give them an opportunity to meet with you, you're an advisor. There is only a subtle difference between the two, but a big difference in the number of appointments you'll set. "Is it worth 40 minutes of you time to see if...."

Agents, the year-end closing date is fast approaching and if some of you find yourself way behind your targets what do you do? Push policies aggressively to customers. But how? Its easy.

Just offer to pay up one or two premiums from your pocket or pay your policyholders a percent of your commission upfront and you can be sure to grab more policies than you ever thought.

If such is the practise you have been following STOP it right away. Big Brother is watching. And if you are unfortunately caught ‘incentivising’ in one of the surprise inspection visits that Insurance Regulatory Development Authority (IRDA) plans to conduct you could be in serious trouble.

Rebating in the insurance industry is a practise worldwide and the situation in India is no different. A number of Life Insurance Corporation (LIC) and non-life agents all these years indulged in rebating heavily and it was not so serious an offence until recently when the insurance regulator took upon itself to put an end to it. Now rebating has been prohibited under section 41 of the Insurance Act, 1938 and any insurer caught indulging in it could end up losing its registration as an insurer.

A practise that was initiated by LIC agents, rebating has become the norm today and is difficult to put an end to, says a private insurer’s agent. And to add to the woes, with the monolith having established itself over a period of time in life insurance its difficult to get business when private insurers do not offer such baits.

Private insurers have been going hammer and tongs to put an end to rebating. Om Kotak Life Insurance is reported to have sacked few agents who offered rebates to policyholders and Birla Sun Life also turned down a policy when the customer demanded ‘incentives’.

While the practise of rebating may be difficult to put an end to, one of the suggestions offered was to spread the commission of agents over a period of 10 years instead of paying around 40 per cent as the first year commission. However, this would perhaps be a disincentive to agents particularly private insurer’s considering the amount of hard work that goes in convincing a prospect especially during the initial stage.

So how can the issue be solved. It is not possible to completely eliminate such ills prevailing in the industry. A few unscrupulous agents will always indulge in these practices which is also the case worldwide inspite of regulations. But it can definitely be minimized either by strict monitoring or by severely penalizing the wrongdoers.