Search

From now on a larger percentage of total sales must be made to existing policyholders, hence future sales volume will depend largely on the satisfaction of old customers. People are ready to pay for the product or service that really meets their needs. A first requirement for satisfactory service is to determine what is wanted, which is a matter of consumer research. Service is supplied by both the agent and the Home Office. Policyholders today often look to agent as a general financial adviser. Insurance business should operate m a goldfish bowl. Life insurance has grown increasingly complex; this fact increases the necessity for simplicity in communication. The life insurance companies must recognize that they have a real responsibility to keep abreast of the changing needs of the insuring public. [ABSTRACT FROM AUTHOR]

This article emphasizes the importance of the life insurance companies to keep their presentations simple, with clear language and technical terms that are easily understood. Insurers, when arranging life insurance protection and handling of funds of an average U.S. family, should keep in mind that the average life insurance policy holder is not as financially sophisticated as the typical corporate stockholder, and therefore not as familiar with business and financial terminology. It is sometimes necessary to discuss certain technical questions with a prospect or policyholder. But its usually possible to give the explanation everyday language that he can understand, instead of assuming that he can absorb technical life insurance terms.