Do-Not-Call rules create silver lining

Congratulations, you’re a telemarketer. At least that’s what you are in the eyes of the newly enacted Do Not Call Legislation (DNCL).

Among other things, advisors’ firms must now register with, and provide information to, the National DNCL operator before initiating a telemarketing communication. But how will this change your world? And what potential opportunities does this legislation afford you?

As with any game, the real trick is to figure out how to use the rules to your advantage. And in this case, to your client’s advantage.

It’s been pointed out that many dual-licensed advisors fail to take proper advantage of their life insurance licences. Advisors stick with stocks or mutual funds because those markets are exciting and the concepts can be easier to convey to clients. There’s always something happening in the mutual fund or stock market universe that’s interesting.

Insurance, on the other hand, is perceived as boring and confusing. An insurance sale can take several, long, face-to-face appointments with the underlying risk of the sale not being made after all the time invested. Or worse, the underwriter declines the application. Investments have a very broad appeal factor; insurance by contrast almost has a repel factor (see “Sales Comparison,” page 22).

While people may enjoy onestop shopping for financial services, research shows they don’t expect one person to be the expert on all subjects related to a complex topic like insurance. And therein lies the opportunity created by the rule change.

In the front of every client file, insert a piece of paper that says, “Because I’m also licensed to sell insurance, I’m obliged to ask when your last insurance review was done.”

It should continue to ask, “Did that review include consideration of critical illness insurance as well as disability, life and long-term care insurance?” Below the question, make a note of the answers along with the date. Then, include a Next Steps strategy, something like, “Although I hold this life licence, I’m not the insurance expert. Just like your family doctor refers you to various specialists, I’m going to introduce you to __________, who is the insurance specialist I work with.”

By starting this conversation, and noting the answers, you have: • Provided full disclosure of the array of insurance products you are licensed to sell; • Developed a well-papered compliant file; and • Commenced delivery of a service. If you can’t see yourself making these changes—or you’re part of the grey fringe gang of advisors who really need to focus on an exit strategy or put a viable succession plan in place—there’s no better time than now to hire an insurance specialist as your assistant.

The DNC list effectively prohibits any other advisor from calling your clients. That alone is reason enough to hire that young, bright, energetic and ambitious person who’s looking to get into the business, but can’t afford to buy a book. Under the DNCL your new hire is allowed to call all your clients as existing business relationships.

They can also call: • Potential group insurance or Individual Pension Plan (IPP) prospects; • Charitable giving prospects (business to business calls); • Anyone who called in with inquiries about any of your products or services within the past six months; and • Anyone who has given express consent to call—orally, electronically or in writing.

Your new hire can be immediately productive by ringing up each one of your clients and gaining opt-ins for future phone calls. Position the call as a, “Here’s what’s new and how it could (or won’t) impact our ability to provide service to you,” and then make sure you throw in, “In order to make sure that never becomes an issue for you, can I make a note in your file that you’ve given me consent in this phone call?”

Whoever makes the call needs to legibly note the phone number called, the time and date and the name of the person he spoke with. Any other pertinent comments the client made need to be documented. And just asking, “What’s new with you?” may provide interesting insights and reasons to have a financial planning review meeting.

Given how quickly people’s circumstances change, ask for an appointment to do a complete, holistic review of your clients’ financial plans. Also invite your client to bring life insurance policies and a group benefits information booklet with a view toward doing a Beneficiary Designation review as an initial step.

Births, deaths, estrangements, divorces, remarriage, job loss (converting group insurance in the 30-day window after losing a job is a must for people who have become uninsurable—or who suspect they have) or children hitting milestone birthdays are all reasons to review beneficiary designations. They’re also good reasons to do complete value-based financial needs analysis that can lead to new policy placements. Imagine the growth you’ll see in your business when you have a person or a systematic process focused entirely on insurance for your clients who, by virtue of the Do Not Call Legislation, have been made a captive audience.

Another obvious value of placing critical illness or disability policies is that your clients will be better protected by tax-free proceeds. That means the investment portfolios you’ve worked hard to build can stay intact in the event of critical illness or death. Dually licensed advisors committed to finding a methodology to the holistic approach are ideally positioned to make an enormous difference for their clients.