Undercover agents: life insurance companies have finally heard the consumer and are bringing understandable, less costly and appealing products to market.

As many older life agents slow down and retire, there seems to be a thinning of the ranks. Some lament a lack of recruitment. Others suggest that many young people, wanting a quick payoff, aren't willing to put in the time needed to achieve success as a life insurance agent.

It's true that the once well-funded company career development programs have all but disappeared. As mutual companies converted to stock companies and an endless string of mergers occurred, the costly agent support budgets were cut and even eliminated.

The redefining of agents from a narrow life insurance role to a more inclusive financial adviser orientation sends an important message. At a time when consumers expect, and even demand, a broad range of choices when spending their money, being perceived as a single-product line salesperson can be hazardous.

Like so many other industries, the total life insurance terrain is shifting. Thirty years ago, for example, a minute percentage of policies were sold through brokerage channels. And then it was only exotic, hard-to-place cases. Then, in the past couple of years, the brokerage industry reached the tipping point. Today, companies see brokerage as a vital distribution channel. And with easy access to a broad spectrum of companies with specific underwriting appetites, brokers can better serve their clients.

All this, however, may just be the tip of the proverbial iceberg as new distribution channels emerge. Here are just two examples:

* Still in its infants: online sales are growing. For consumers who buy cars, home mortgages, furniture, paint, computers, and just about everything else online, why not life insurance? To suggest that life insurance sales are "different" doesn't resonate with a growing group of buyers.

* There's Fidelity Investments Group and other financial services companies. Millions of Americans have been dealing with Fidelity for years and are comfortable with the quality of its products and the way it does business. Why not purchase life insurance there, too? The same can be said about banks. After a generally rocky start due to the clash of banking and life insurance cultures, the future is certain--banks will be moving more and more product.

Interesting issues emerge from all of this. First, the consumer's relationship is more and more to a company, and not to a particular salesperson. It's satisfaction with Fidelity or Bank of America that drives loyalty.

The new channels also are changing the prospecting process. With millions of Americans on "do-not-call" lists, cold calling is no longer a way to generate new business. Both the Internet and the Fidelity-type organizations have stood the prospecting process on its head. They are pulling actual motivated prospects to their venues, people who are interested in life products.

It's unfortunate that much of the more traditional life insurance industry continues to find itself saddled with a product-pushing image, one that goes against the grain of perhaps a majority of consumers.

Even though significant efforts at educating consumers and consultative selling techniques have helped to alter the perception of life insurance salespeople, a negative feeling persists. However, we can expect this to change over time.

And it may very well be that the newer distribution channels will become the industry's greatest allies in helping to establish a more appropriate image, one that is built on helping consumers fashion a secure financial future.

But all the credit for changing the public's attitudes toward life insurance shouldn't go to the alternative distribution channels. To its immense credit, life insurance companies have finally beard the consumer.

This new approach is reflected in bringing to market understandable, less costly and appealing products that are also far easier to sell. And with the newly revised actuarial tables have come lower premiums. In addition, the 30-year term and return of premium policies are two excellent examples of the type of products that make sense to consumers.

There will certainly be far fewer face-to-face meetings between insurance buyers and salespeople as time passes. There will be more e-mailing and telephone conversations. Tomorrow's agent will communicate with perhaps 50 customers a day instead of one or two.

And in the end, we can look for the industry to reach its objective of more Americans benefiting from the security of life insurance, the time-tested financial instrument.

Ronald D. Verzone is a Best's Review columnist and president of United Underwriters, Exeter, X.H. He can be reached at [e-mail].