By Edward Cassidy, managing principal, Saybrus Group Inc.

For property-casualty agents, cross-selling life insurance can be as simple as starting a conversation. Clients already view their agents as trustworthy and credible. Many are also looking for the security and convenience of having one source for all their insurance needs, across product lines.

Good relationships with clients can translate directly into life insurance sales, with 77 percent of clients buying from their existing agent, according to LIMRA's 2011 To Buy or Not to Buy Life Insurance study.

Cross-selling life insurance also helps build client loyalty, increase referrals, diversify revenue stream and protect agency income, especially in a soft market.

Many agents already offer term and permanent life insurance policies to help their clients meet easily defined needs, such as income replacement if a family breadwinner dies. However, some may be more reluctant when it comes to helping their affluent and high net worth clients, who typically have more complex life insurance needs that often encompass financial, tax and estate planning.

The opportunity is there. Nearly a third of all consumers believe they need more life insurance, according to the LIFE/LIMRA 2012 Insurance Barometer study. But this doesn't necessarily mean they're buying; many stop short, put the decision on hold or continue to gather information because they have unanswered questions or don't fully understand what they need.

Over the past several years, the life insurance marketplace has changed dramatically. In addition to advancements in underwriting methodology, life carriers have made strides with innovative product design, such as combination products and new and expanded features such as long-term-care and longevity riders. As the products have developed, so have their potential uses, from income replacement to wealth transfer. It's also important to understand how life insurance can fit into a family's financial, retirement or legacy plan.

Agents already know the milestones in their clients' lives because they purchase new coverage or make changes to existing policies. These milestones, particularly those involving family, are powerful triggers for buying life insurance.

Agents also have the resources to assess the value of homes and other property, such as boats and vacation homes, providing a window into a client's true financial situation.

One simple reason why P&C agents aren't cross-selling life insurance is that they're busy with their practices. It's challenging to become proficient in another line, particularly one as dynamic as life insurance.

But there are ways to overcome these issues. Groups such as the National Assn. of Insurance and Financial Advisors (NAIFA) offer professional learning courses, practice tools and tips and other resources. Agents also can earn designations such as The American College's Chartered Life Underwriter (CLU), or Chartered Financial Consultant (ChFC).

P&C agents can also partner with a life insurance specialist, which enables them to combine their client knowledge with the experience and knowledge of an expert. This specialist can review the P&C agent's book of business, identifying clients who have needs that can be addressed by life insurance solutions, and creating appropriate strategies.

Here are six steps to get started:

1. Find and Work with a Partner

The most important requirement is to find a partner the P&C producer likes and trusts. The life insurance specialist should have a complementary, not competitive, practice. If P&C producers don't have existing relationships with life insurance experts, they can ask for recommendations from colleagues or consult professional organizations.

2. Define Roles And Responsibilities

Both parties should be clear on their responsibilities and relationship parameters. It is beneficial to work out an agreement and commit it to paper. While not a legal document, a written plan that includes goals, expectations, and roles can prevent misunderstandings and miscommunication.

3. Identify Clients with Life Insurance Needs

Collaboratively review the P&C producer's client base, looking for clients with needs that can be met with life insurance. While some needs are apparent, such as income replacement, the review can also help with holistic assessment and planning, particularly for high-net-worth clients. For example, if there are existing insurance policies, are they meeting the client's needs? Can you address multiple coverage needs with the same dollars, such as life insurance that incorporates long-term-care benefits? Can you employ tax-efficient strategies for supplemental retirement planning?

4. Conduct Joint Client Meetings

The most effective approach is for both the agent and life insurance specialist to meet with the client. While the life insurance specialist is providing valuable information, the primary relationship is between the agent and the client. A detailed needs analysis of each client is perhaps the most essential part of the sales process. The P&C producer's understanding of the client's situation, based on insured property and other coverages, is a great starting point for an in-depth conversation about the client's personal needs and objectives.

5. Implement Life Insurance Solutions

The life insurance specialist will propose solutions, which may or may not include life insurance, to address the client's needs. Once the client has reviewed the options and come to a decision, the life insurance specialist can help identify the best product based on key features and underwriting considerations. The specialist will also help facilitate the case to issue, beginning with tasks such as completing the application, making sure medical exams and records are ordered, and acting as carrier liaison, if needed.

6. Evaluate Progress Toward Goals

Establish a schedule for periodic assessments of the client base to evaluate progress toward goals and continue to identify life insurance opportunities with newly acquired and long-term P&C clients. These can be done quarterly or on whatever schedule makes sense.

It is also important for the agent and life insurance specialist to build an annual review process for the clients with whom they have worked. A yearly look at clients' life insurance policies can help ensure changing needs or issues with policy performance are addressed.

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