Assumption Closing

[shonceman]

I am not sure where the confusion is. If you are working a book of business like Wino, it is completely different. If you are not on a lead program and go see people once or twice a month, that is completely different.

But for an agent buying DM leads each and every week, you can't go out there slinging only $15 or $20 per month policies. I live in Mississippi and have to price drop a lot more than most of you probably have to. But a new agent will find a quick exit if he closes 25% of his DM leads and is writing $15 apps.

If you are running leads, you know what I am talking about when people always say they want 10k. That is the number thrown around most of the time. They only say that because they saw something 6 months ago and for some reason that number is in their head. My job is to find out their reason for sending the card in, and then presenting MY recommendations. They are not forced to buy them!

I also go into houses and talk with people that I can instantly tell are in a financial bind. In those cases, you can show less if you are 100% sure that money is the problem. I just do not think a new agent should be consistently showing less than $50 initially. If money is the problem, then you can drop it down from there after you find out if it is a smoke screen or a true objection.

Flip the conversation around...how many times have you walked into a house and someone say "I am looking for at least a million!" And he is a unemployed single guy living in a camper. He doesn't have any rhyme or reason for saying 1 million, it is just a number he is throwing out.

If 10k is less than $50 per month, that means they are younger. Do you not think it is smart to show someone a policy that will cover their funeral if they live several more years? If $50 per month is less than 10k, (just say it is $4,000 because of their age) then you are showing them how having SOMETHING is better than having nothing...but you also have higher options on the sheet in case they would rather spend more to have the right amount.

I make posts to try to help new agents that are full time in this and running leads each week. Some of you have other ways to get business or are not full time in the business. Of course your situation would be different.

Ben, I hope you didn't get the impression that my post about "sticker shock", etc., was arguing with you. I'm in complete agreement with you. In fact, when I have run leads I've presented almost identical to you. My only point was that with a lower income market, the premium is often the primary thing on their mind more than coverage. Some of the guys were suggesting that it's more important to ascertain the need, then sell to that, whatever the premium. Not arguing with that either, given the right clientele. But for those on a limited income it's better, IMO, to ascertain affordability first.

But you're right, a lot of people are stuck on that 10k figure, which in Dallas is only barely adequate right now, much less a couple years into the future. And it's way too tempting for new agents to just run with that instead of exploring other options. And for seniors, even in low income areas, it's gonna be hard to do anything meaningful for much under $50, so more often than not my middle number is close to that (although I try to stay just under it. $49.something feels better than $50.something).

 

[WinoBlues]

Man there is some good stuff in this thread.

A lot of way to do what we do.

 

[Life Hawk]

Maybe ask... "How much do you feel your family will need to cover the cost of your passing in (number of years based of persons age, health, ... ect.), so that they don't come up short?

I have been know to more strongly suggest a higher coverage based off know factors, however there may be a bit more here to consider. Is it a one sell stop? Or... if you where to contact these clients in the next 6 months or year, might they possibly purchase more? People tend to purchase more once they have purchased once.

 

[goillini52]

The only time I'm out in 20 minutes or less is when it is apparent that they are not a buyer. Otherwise, I am slow. If I am there for more than 20 minutes, I am certain that I am leaving with a signed app.

I would say my average appointment is close to two hours. I got 24 DM leads this past Saturday and I haven't even touched them as I am still working my first batch. My appointments tomorrow are all off of that first batch of 19 leads from the week before (actually 18 if you count the 89 year old lady who I have no carrier with whom to write her). I will be making calls to my new leads tomorrow to set appointments for Friday and Saturday.

I know these guys who have been doing this for years say you need 25, 30, even 40 leads a week to be full time. But I have to tell you the truth - I committed to 25 leads a week, and with as slow as I am on a call, I am going to be stacked up behind right quick. I can see how NFL72 only needs to do a 2000 piece mail drop once a month to write $6000 AP/week.

Aetna and SNL will do 89 year olds. Oh yeah...so will Todd.

 

[shonceman]

• Maybe ask... "How much do you feel your family will need to cover the cost of your passing in (number of years based of persons age, health, ... ect.), so that they don't come up short?

I have been know to more strongly suggest a higher coverage based off know factors, however there may be a bit more here to consider. Is it a one sell stop? Or... if you where to contact these clients in the next 6 months or year, might they possibly purchase more? People tend to purchase more once they have purchased once.

Good point. Like Matt said about when he started out, my first goal with a brand new prospect is to make them a client. I might have to ease them into it, especially if they’ve been without coverage for a long time. But, like Ben said, having SOMETHING is better than having NOTHING. Once they’re a client and used to paying premiums, we can tweak their plan on a future review.

 

[DayTimer]

Aetna and SNL will do 89 year olds. Oh yeah...so will Todd.

SNL not available here and I do not have Aetna. And I ain't no Todd

 

[Rearden]

While all sales methods work some of the time, I'm a strong advocate for "Sell The Premium" in combination with completely pre-qualifying the client on the front end of the sales presentation, well before I even show the prospect how my burial insurance program works.

Taught by the great final expense salesperson Tim Winders, Selling The Premium goes like this:

1) After you have positively qualified the prospect on need, want, health, and a draftable account, you proceed to ask for a firm commitment on what premium range the prospect can comfortably afford.

2) However, you want to make sure you get as much business as the future client can reasonably afford, but also have a plan to offer smaller amounts in case they cannot.

3) You want to ensure your client that you are not there to "rip them off" or charge them so high that your intentions are to pressure them into something that doesn't work.

Here's the scripting I recommend to accomplish this:

"My last question to you, Mr. Prospect, is about price. Nine out of ten of my clients are either retired or disabled. Basically EVERYONE is on a fixed income! And the LAST thing I'd recommend is spending MORE than you can afford!

"Here's what I mean. What good does it do you if you have to drop your burial insurance plan six months from now because it was just TOO expensive to keep? That's a COMPLETE waste of your money, right?

"Bottom line, the only policy worth having... is the one that's there when you pass away. Because the one that's there when you pass away... is the one that does the job, right?

"So here's my question. If I can qualify you TODAY for a burial insurance program, can you afford somewhere between $80 to $100 a month?"

Why this method works:

A) Prospects do not expect a salesperson to care about budget; they figure you're there to take everything.

B) You are taking time to show your understanding. By describing to them the audience you sell policies to normally, and describing a situation that many fixed income folks have faced when paying for something too expensive, you are creating an important level of rapport.

C) All this "buttering up" gives you permission to ask for a high premium to start. Naturally, you'll lower the premium if they client cannot afford it.

"Mr. Prospect, luckily the program does not have to cost that much. However, if I can find you a DIFFERENT program to qualify you TODAY for, could you afford a price between $50 and $70?"

Then continue working the budget down (even to the $15 to $20 range) until they give you A FIRM 100% COMMITMENT.

ANYTHING other than a YES is a NO. For example, "I think I can afford it," "I might be able to do that," is ALWAYS a NO!

Final point with the Sell The Premium approach.

I believe using this particular method is the most conducive to higher levels of persistency.

I think our final expense market place is more prone to making bad financial decisions, as many of our prospects have proven this to be true.

I do not want them to repeat this offense with me. Rather, I want them only to become a client.

As Ben said a year or two ago, you can always go back to these people and sell them more coverage. And TRUST ME, they will be buying more at some future date.

...Just make sure you survive long enough to experience it.

 

[rousemark]

But you're right, a lot of people are stuck on that 10k figure, .

hat also applies to agents.... Think about it, if you want to run a comparison quote, what face amount do you use? Whenever agents asks for premiums on the forum, they invariably ask for the rates for $10K... Sometimes, I wonder if agents shortchange their client and themselves because they do not think in terms of larger face amounts?

 

[goillini52]

SNL not available here and I do not have Aetna. And I ain't no Todd

Didn't know what state you're in. I'm no Todd either. I draw the line at 80.

 

[goillini52]

hat also applies to agents.... Think about it, if you want to run a comparison quote, what face amount do you use? Whenever agents asks for premiums on the forum, they invariably ask for the rates for $10K... Sometimes, I wonder if agents shortchange their client and themselves because they do not think in terms of larger face amounts?

It's Adam's fault. FexQuotes is set for $10K when you 1st login.