Lessons of Harvey & Irma For Life Agents
We have all been captivated for the last 2 weeks by the hurricanes Harvey and Irma (and let’s not forget Hurricane Jose fast approaching). But what does this matter to you if you are not in southeast TX or the state of Florida? Well, there is lesson after lesson for all of us that we should reflect on:
FLOOD INSURANCE, WHAT FLOOD INSURANCE? It is estimated that 80% of homes that were flooded did not have flood coverage in SE TX area. In Florida, 58% of homes in flood areas DID NOT have flood insurance. Houston is a coastal city. Florida is a peninsula. You would think that people in these areas would always buy the coverage. Average additional cost for this coverage ranges from $300-$600 a year so it isn’t the cost. So, what is it? Simple, people don’t believe it will happen to them. What are the chances of a flood? And I may not be flooded, so let’s take the cheap way out. (That’s the thinking) Consequences? Huge, for those that have nothing to fall back on. The consequence is homelessness or living in houses that are subpar to what they were before. Of the $80 billion in estimated TX home damage, only $10 billion is covered by insurance. In Florida, of the estimated $65 billion in home damage, only $20 billion is covered. Whew! Not to mention the time and worry invested in trying to put your life back together again. But, they saved $300-$600 on average!
LIFE INSURANCE, WHAT LIFE INSURANCE? 62% of adult working Americans DO NOT have life insurance or very inadequate coverage. And what are the chances of dying? 100%! Maybe, just maybe, you won’t have a flood. But dying? It’s a sure thing. And yet, person after person just can’t make themselves purchase this very inexpensive product even though the event is a certainty. What type of insanity is this? Consequences? Dreams turn cloudy or nightmarish, homes foreclosed, college disrupted, widows left wondering how they will manage. All this at a time when the average household has less than $5,000 in the bank saved for emergencies. Is Go-Fund-Me the new life insurance? For many it is. Whew. Rates have never been lower so it can’t be the cost. So, what is it? Well, sad to say, the fault lies in us and the consumer. It is us because we don’t push the point of making people confront their own situation. It is the consumer because they are in a state of denial. They don’t want to face a sure thing.
And today's financial products are so easy to sell. In reality, today’s policies offer death insurance as just one of the benefits along with 15 other benefits that provide money for the inevitable sickness that we all face. Will our clients be able to face their financial hurricane with products that will save them or will they be kicking themselves in the butt for not buying it before the financial hurricane of sickness and ultimately death?? Yes, all of us will face a financial hurricane. It is up to us as agents to put this picture in front of our prospects and guarantee that they will survive. That is our job! Good selling, my friends. Pegasus is with you as you go about spreading this gospel. --