Yet another cryptic title today as we talk about one of the rather significant impacts of the unprecedented price change activity we are experiencing this first quarter of 2012. So what is this mysterious cost buried beneath all of the other communication about price changes? The cost of waiting to convert a term contract.

We all know that insurance increases in cost as we age, so what's the big deal? The magnitude of the price increase. Simply put, if any of your clients have been considering converting term insurance as part of their risk management strategy, they really need to consider doing it now, before they are faced with prices that may be ten to fifteen percent higher as soon as next year.

How do I get to ten to fifteen percent? Petty easy math actually. Start with a price increase of ten percent (or more) in some cells, and then sprinkle the fact the client is now one year older on top to arrive at the total cost increase. At this point you may be wondering where the keen insight that you have come to expect is? This is a really simple bit of math after all. Frankly, the insight comes not from understanding the numbers, but from understanding what to do about them.

Let's start with one simple fact: our clients do not sit around watching insurance prices. That is what we are for. Now that we are faced with a known increase of such a significant magnitude, it is time to communicate not only the facts but our recommended course of action to our clients. As with most things in our business, there are two ways to look at this, glass half full, and glass half empty.

The glass half empty approach focuses on the fact that prices are increasing. You know how popular price increases are with the public. Even if they understood why prices are going up, they still would not care, and may even use that as a reason not to buy! I can hear it now: "damn insurance companies.....conspiracy.....out to get the little guy". Maybe a little extreme, but I think we can all agree that there is at least a part of most clients who are going to react this way if we approach me in this manner.

The glass half full producer focuses on the opportunity. By taking action today, the savvy client can save thousands upon thousands of dollars on their insurance over their lifetime. Viewed through this lens, our clients have an entirely different experience. Rather than being the harbinger of doom, we are now providing solid advice on how to manage their life insurance based on what we see the market doing over the next few years.

Just what kind of difference can this make? Let's follow this idea of providing advice. If we were talking about investment recommendations, if we could increase a client's actual rate of return by 1% would that make a significant difference over the long haul? Absolutely it would! Clearly it is time to get out there and show the value of working with a life insurance professional.