Life annuities are a business with a future

Monika Ruhland, a cooperation partner of Deutsche Leibrente, continues to focus on customer events. In an interview, the real estate expert reveals what she pays attention to during the coronavirus pandemic and what future prospects she sees for this model of retirement financing.

Ms. Ruhland, your customer event in August was very successful despite the current COVID-19 restrictions. Did the invited participants have any reservations?

Of course, I had to adapt to this situation and, for example, adhere to social distancing and hygiene regulations. This required thorough planning, but it was manageable. I received positive feedback from my clients; I didn't receive any cancellations due to COVID-19. What did worry me, however, was that the event fell on August 12th, one of the hottest days of the summer with temperatures exceeding 30 degrees Celsius. Although many participants were over 70, most still attended. Of the 25 RSVPs, 16 ultimately showed up – that's a good turnout. My conclusion: Even in the current climate, events of this kind are important and feasible. I'm now working on the follow-up after the event and am already in individual, direct consultation sessions with four participants. I will therefore plan and implement similar client events in the future.

What tips do you have for a successful customer event?

The event took place in a town of just under 8,000 inhabitants. I myself come from the region around Saarlouis and am deeply rooted here. This proximity is an advantage for the target group, but the scope shouldn't be too narrow. For example, only two of the participants came directly from the town; all the others traveled from the surrounding area. The reason for this is that many people are hesitant to attend an event about reverse mortgages in their own town because other residents might assume they aren't financially secure. Therefore, I left informational material with the venue owner. He's now approaching people directly and giving them my flyers.

What advertising measures are you implementing?

It's important to start early and build the individual actions upon one another. Six weeks beforehand, I began with advertisements in the regional newspaper. Every two weeks, I placed ads and explicitly announced the customer event. I also advertised in the official community newsletter. Special information leaflets, or flyers, which I have distributed through my network, are also helpful – this allows me to reach a broad audience of interested participants. Many people read such a flyer and don't throw it away, but keep it. Sometimes, I'm contacted by a new customer who received a flyer from me months or even years ago. That's why I always say: advertising measures and events shouldn't be judged by short-term success. Long-term results are what count!

How important do you consider the concept of the German life annuity?

Due to demographic trends, reverse mortgages will continue to grow in importance. Statistically, the husband dies first, and many widows—because they were not employed—have to manage with only 60 percent of their former pension. At the same time, the husband's labor is also lost, even if he previously carried out minor repairs on the house himself. The wife then has to manage higher expenses with less money—which is often impossible without additional income, such as a reverse mortgage. From my own client base, I also know of cases where the children already own their own property or have no interest in their parents' house. A reverse mortgage allows everything to be arranged early on in such situations. Therefore, it's clear to me: As a cooperation partner of Deutsche Leibrente, I will continue to plan events and promote the service—because it's a business with a future, both during the pandemic and beyond.