6 minute read
What Business Are We Really In?
By Steve Clabaugh, CLU, ChFC
November - it’s right in the middle of open enrollment season. That time of year when our schedules can go quickly from busy to totally crazy. For many of us, our compensation is directly affected by participation percentages and the resulting premiums. And for many of our companies, (both carriers and brokers) profitability for the year is on the line.
But November is also the month when we set aside a special time to give thanks for our country, our families, our fellow citizens and our heritage as Americans. Did you know that the United States is one of only 7 countries in the world that designate a holiday, at any time, for giving thanks?
So, as we scramble to handle both the usual and the unexpected challenges of open enrollment, I’d like to take a few minutes to remind us of what our business is really all about. And it’s not just participation, premiums, commissions and qualifying for awards and trips.
It’s about offering some security in a very unsecure world.
It’s about helping people understand the great risks in human existence (living too long, dying too soon, contracting a critical illness, becoming disabled, etc.).
It’s about being there when the unthinkable becomes the actual.
It’s about helping real people deal with real problems.
When I first started in the life insurance industry, the more experienced agents used to say that “until you have paid a claim, you aren’t really in the business” I learned this to be the truth in a very practical and humbling way.
Early in my career, I was asked to deliver a claim check to the widow of a long-time client whose agent was no longer with the company. I called, introduced myself, and made an appointment to meet with her and her son to deliver the check. Following the directions her son gave me (directions and maps were what we used pre-GPS in 1988), I arrived at a small frame house in an older but well cared for neighborhood at the appointed time.
I was very nervous as I knocked on the door, but she was such a kind and gracious lady that she quickly put me at ease. She introduced me to her son and while we drank coffee, she shared stories about her late husband and their life together.
He was a carpenter and had built much of their home himself. It may have been a little house, but it was filled with wonderful memories of their years together. Her husband had purchased the life insurance policy many years ago to make sure she would be taken care of in case of his death.
Now it was time for me to fulfill the promise made by the insurance carrier. As she talked, I kept thinking about the check I was about to present to her. The check was for $25,000, which wasn’t a lot of money even in 1988. How in the world would such a small check take care of her?
It was then that I made one of the worst presentations of my entire life and career, before or since. As I handed her the check, I mumbled something like: “On behalf of our company it is my privilege to present you with this check”. Nothing special or embarrassing so far But then I finished by saying, “I’m sorry it isn’t more”.
Ouch!
Before the words even finished leaving my mouth, I realized what an insensitive, insulting and downright stupid statement to make. That policy was probably what their budget afforded at the time of purchase. So here I was, in effect, criticizing them for doing the best they could. Surely this was the worst claim presentation ever and no doubt she and her son would be deeply offended.
I will never forget her response.
Instead of being angry and insulted, she walked across the room, received the check from me and handed it to her son. Then she turned back around and took my hand in both of hers. She looked up at me with tears in her eyes and explained that the check was just the right amount. It meant that she could stay in the home they had built together. Because of that check, she would not have to move in with her son and his family. The check was a final message of his love and care for her.
I have never forgotten the life lesson she taught me. Over the years I have participated in many other opportunities to fulfill the promise our carriers make I have shared many of those experiences with agents, brokers and home office associates. As CEO of a life insurance company, I used to share claims stories every year at our annual awards trip for top agents. But here, 35 years later, I still remember that particular experience like it had happened yesterday.
As we hustle through this high-pressure busy season and on to the year’s end I hope you will join me in thanking those that develop new products; actuaries that analyze and price them; compliance associates who make sure provisions are legal and appropriate; underwriters who evaluate and approve the risks; marketing teams that prepare materials to tell the story; field officers who recruit and support those who sell; the agents and brokers who represent the products; home office associates who process and issue the products; accountants who apply premiums; customer service representatives who answer client’s questions; claims teams who help clients by fulfilling the carrier’s promises and – well, you get the picture.
This column each month is focused on what we call Relational Leadership. I can’t think of any better example of how the relationships between all of us in this vital industry work together to meet the real needs of real people.
Thank you for the outstanding way you do your part.
Steve Clabaugh, CLU, ChFC - started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO. A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents.
