Assumption Closing

[PA Bill]

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.

This is spot on. I was taught by a wise man to always say these six words, "I realize everyone has a budget". People really seem to like it when you get that.

 

[Todd King]

My clientele may be a little different than others, but I have to keep in mind that they're buying premium first, then coverage. So when I write my 3 quotes, the one in the middle is the one I think they'll go for. I hope it covers at least an average funeral. But, especially if they're older, I don't want them to suffer initial "sticker shock", or subsequent buyer's remorse.

If they point too quickly at the highest option, I try to press them to make sure they'll still be able to afford it when the electric bill goes sky high in August, then back them down if I think they're taking too big a bite. I don't just want them to buy, I want them to keep it.

Your clients are no different than other FE clients. The difference is that YOU are the one presenting premium instead of face because you already have it set in your mind about how much they can afford or that they can't afford much. I'm not saying what you are doing is wrong, just that you aren't presenting it in a way to find out the face amount needed (let them tell you) and then present that premium. You can always go lower if they can't afford what they need.

 

[VolAgent]

At the end of the day, people buy what they want, not what they need. You have to sell the need, but they will buy the want.

Whatever method gets you to the want, then that is what you should be doing. Whether it is assuming the close by presenting a solution and starting to write the app or showing 3 choices and making them pick, just find the want.

And quite frankly, presenting 3 choices is just as much assuming the sale as starting on the app. I have yet to see anyone present $100, $50, Don't buy. You always present 3 choices that are a purchase.

 

[bboman23]

If you are a successful agent, you already know that not all situations are the same. Getting a premium commitment is great and that system can work for an agent. This is just one way to get down to the prices on a more consistent basis and can allow the agent to get more sales.

And writing $30 apps like Spur mentioned is also required. No one should walk out of a house when you can write an application. But you don't have to go in the house showing them $30 premiums right off the bat. 1 out of 10 times will you have to price drop below $50....if that.

I have done the covering up the prices thing before as well and it works way more times than not. They will say $100 and it is really $62 or whatever.

And as far as the comment about making sure it fits in their budget, you post was not about Presentation, it was about closing. I plant seeds several times that picking a plan that fits into your budget each and every month is the most important thing. Also before I reveal the 3 quotes, I tell them that this is just 3 of the most common plan amounts, but we have prices above these and also below these. Then I hand them the quotes.

And Dave, to your point about me saying you can go back and get premium at a later time, I still 100% teach and believe that. That was referring to someone picking the HIGHEST quote on the sheet and you really have a feeling that they can't afford that. In situations like that, it is better to back them down and then make a note of it to go back and get them more coverage later if they keep the policy paid.

I had a lady that went and got her insurance policies out of the closet. She had policies stacked up! After looking through them, "That one I took a few months ago and let it collapse. That one I took last year but I had to let it collapse. I got that one 6 months ago and let it collapse."

I was training a new agent, so I went ahead and did the full presentation to let him learn. When we got to the end, she picked $120 option on the sheet. She can pick that because she is not going to keep it anyways. In a situation like that, you would want to back her down to something she can afford and really drill down her budget. (I was not willing to write her though, so I just told her to read over the brochure and make sure she understands it all, then call me and I will swing by and get it wrote up! She has never called)

 

[NSRH]

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.

Dave, GREAT POST! I actually copied and pasted it in a separate document. I do something similar, but I LOVE what you've shared here!

Are you sure you dont sell final expense over the phone? Haha!

 

[rousemark]

And Dave, to your point about me saying you can go back and get premium at a later time, I still 100% teach and believe that. That was referring to someone picking the HIGHEST quote on the sheet and you really have a feeling that they can't afford that. In situations like that, it is better to back them down and then make a note of it to go back and get them more coverage later if they keep the policy paid.

I have often told the guys that tend to be one and done agents that they are missing out on on of their most valuable resources because they do not work their book.. First, you know they buy.. Not only do they buy, you know they will buy from you so you have already establish trust with them. Second, you know they will keep what they buy...Many times, it is the easiest sale you will ever make and there is absolutely no additional lead cost. Plus, if you are willing to call on referrals, then it is a great time to get referrals from you clients.

For those of us that aren't exclusively FE*, working your book is a great way to easily sell other products and earn additional commission from the lead you bought a year or more ago!

 

[LostDollar]

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).

I agree very strongly with what you said.

I can speak only from the experience of one, not of hundreds, but your observations express the economic realities of my life. (as a senior who might be the type of person approached for FE insurance.)

Your comments in your first paragraph present exactly the thought process I have been currently struggling through in regard to another insurance product. I appreciate seeing that someone could approach the other side of the kitchen table with understanding of my situation (or my consumer group's situation).

 

[goillini52]

I have often told the guys that tend to be one and done agents that they are missing out on on of their most valuable resources because they do not work their book.. First, you know they buy.. Not only do they buy, you know they will buy from you so you have already establish trust with them. Second, you know they will keep what they buy...Many times, it is the easiest sale you will ever make and there is absolutely no additional lead cost. Plus, if you are willing to call on referrals, then it is a great time to get referrals from you clients.
ell other products and earn additional commission from the lead you bought a year or more ago!

Also, the more policies you have in the house, the harder it is for another agent to get in the house. You're their insurance guy...their expert.

 

[LostDollar]

I do not pay for leads so I do not have that overhead on every call.

If one could watch everything you do in relation to your business over a period of a month, a quarter, or a half year, I bet that would turn out to be sort of an incorrect statement.

One of the things I think I have learned about selling insurance products from reading posts in the forum is that one does not get the privilege of sitting in front of a potential purchaser for free.....but also that the "cost" can be paid in a variety of "currencies".

I think I am remembering a thread where an agent was fussing about processing change of address forms on term policies, to which your response was "send me aors".

I would not have appreciated this three years ago, but it looks to me like "free leads/referrals" come with a significant cost in time, courtesy, attention, etc in the forms of customer appreciation and service activities.

 

[Life Hawk]

For those of us that aren't exclusively FE*, working your book is a great way to easily sell other products and earn additional commission from the lead you bought a year or more ago!

2 items to this point...

1. You need a way to remind yourself about those clients you should see again and that ties into good solid CRM with good client notes (new agents would do well to learn this early on, wish I had)

2. Simple ancillary products other than just life to position to (I prefer a cancer plan, low cost simple issue, universal as death itself)

Where were you guys when I started????