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Fee Income Through Life Insurance

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THE LEADERBOARD REPORT
Release Date: December 16, 2020
Participants: Mike Strickland, Scott Carrithers
Topic: Fee Income Through Life Insurance

Click here to listen now, or read the transcript below:

Scott Carrithers: Welcome to the latest installment of The Leaderboard Report. I’m Scott Carrithers, managing director for Country Club Bank’s Capital Markets Group. In today’s Leaderboard Report, we will hear from Mike Strickland of Country Club Bank’s Wheatland Advisors, who will be discussing a strategy to increase fee income through life insurance.

Mike Strickland: Thank you, Scott.

As senior manager of Wheatland Advisors, I work with financial institutions to provide strategies and solutions for fee income. Today, I‘ll be reviewing how your community bank can create fee income through helping your customers with their life insurance needs.

There‘s a real need in our communities for a trusted source for life insurance, and I’m asking you to consider your community bank to step in and fill the gap.

So, let’s take a look at what structure is needed and how fee income is generated.

A community bank can create a life division with an agency license and one bank employee with an individual license. The estimated upfront cost is around a thousand dollars. A community bank can earn commission on the first-year premium for a life insurance policy. To give you a little perspective, the average annual premium is around $1,100—and it’s not uncommon to see $5,000 to $10,000 annual premium policies.

You may be asking the question, “Why Us?” I thought there was an insurance industry in place that takes care of my customer.

Well, the life insurance industry distribution has changed, and some of the following facts may surprise you:

First, in 1969, there were 20 million policies sold. By comparison, 50 years later, in 2019, only 10 million policies were sold.

Also consider that 43% of American adults have NO life insurance.

And, 32% of American adults with life insurance have group coverage only.

Finally, 40% of those who have life insurance feel they don’t have enough.

How can you get started?

Wheatland Advisors is a division of Country Club Bank with a proven platform called Safenet. Initially, it was created within Country Club Bank, and now it helps community banks in seven states and the Territory of Guam.

Safenet will bring the products, technology, and tools you will need to have confidence to help your customers with their life insurance needs. For example, it offers:

  • 16 highly-rated companies, including household names like Prudential, Principle, and AIG.
  • The most advanced technology to quote, select, and submit an application—within just 5 minutes.
  • Training and support for licensed employees.
  • Referral training for all employees on the clues to listen for.
  • And a marketing platform with your branding.

I invite you to leverage my 27 years of experience to assist you in developing a life division for your community and bank. Take a first step and reach out to me to learn more on how to get started.

You can reach me at mstrickland@countryclubbank.com.

Thank you for your time today.

 

Country Club Financial Services, Inc., dba Wheatland Advisors. Country Club Financial Services, Inc. is a subsidiary of Country Club Bank, Kansas City, MO.

Not FDIC Insured, No Bank Guarantee, May Lose Value.