Selling to Seniors: Approach with Caution

December 2006—We’ve all heard the saying, “You never get a second chance to make a first impression.” This is especially true when it comes to contacting seniors.  Yet agents and advisors continue to misrepresent themselves when they approach senior prospects, sparking complaints and government scrutiny.

A recent case in point: A large senior-market insurer is in hot water in Connecticut because
its agents. . .

• Called seniors requesting appointments to complete a Medicare survey.
• Identified themselves as “licensed by the State of Connecticut as a Senior Advisor,” including giving a license number.
• Showed up at senior homes without an appointment, attempting to replace the prospect’s existing insurance policies.

The practices have captured the interest of the Connecticut attorney general, insurance department, and legislature.  There’s even talk of a new state law prohibiting in-person sales calls without an appointment.

What can we learn from this situation?

First, be totally upfront in your initial approach to any client, especially to a senior. Don’t even suggest you have anything to do with the federal Medicare program. And never hide the fact that your objective is to sell insurance, provide investment advice or products, or offer financial planning.

Second, do not misrepresent your license. Never claim a professional designation is a license to do business.

Third, think twice about showing up uninvited at a senior’s home.  Not only is it likely to generate a complaint, it is absolutely the wrong way to make a positive first impression.

Fourth and perhaps most important, develop your own internal ethical compass. Although we don’t know who is to blame for the Connecticut violations—individual rogue agents, field agency management, or home office leaders—we do know that home office brass can steer advisors into unethical and even illegal territory. But just as one can lead a horse to water, but never make it drink, no one can force you to do something unethical or illegal if you are committed to remaining ethical. 

Bottom line: You have the right—and obligation—to say no when asked to do something wrong. After all, your company might get fined or lose its authority to operate in your state.  But you stand to lose a lot more:  your integrity, your good name, and your livelihood.

What “Red Flags” are affecting your business? The National Ethics Bureau welcomes your input. Send your comments to: hlew@ethicscheck.com