Avoiding Replacement?/ Giving Value

[Funguy]

Hey guys,

1)Are Whole Life policies "only" replaced because the client is able to find another company with more coverage for the same price compared to what they are currently paying?

2) In sales I have often hear the phrase "selling on value" not on price? How does this apply when selling Whole Life Insurance (Final expense products) ?

Thank you,

Funguy

 

[Newby]

Hey guys,

1)Are Whole Life policies "only" replaced because the client is able to find another company with more coverage for the same price compared to what they are currently paying?

2) In sales I have often hear the phrase "selling on value" not on price? How does this apply when selling Whole Life Insurance (Final expense products) ?

Thank you,

Funguy

Most (999 out of 1,000) seniors buy FE for permanent death benefit with a locked in premium and coverage until death. So replacing a policy that is priced worse is almost always a bad idea. More coverage for the same or less premium is the main reason WL is replaced.

Many FE policies replace term or UL and is a higher premium but has no expiration date.

 

[Rearden]

Selling value on new business is important, but I find that price competitiveness over time, assuming you sold whole life, is what matters to the prospect, and is the primary motivation to keep or replace their policy.

However, when you replace another agent's policy, selling value beyond pricing is paramount, and is what solidifies the sale.

Meaning you have to wedge a concept in as to the "reason why" a replacement should occur beyond logic.

I had an appointment yesterday. Just took out 3 American Memorial policies last week (local Securus inventory).

When I asked them up front for what reasons they'd want to switch, of course, pricing was a reason.

But as I got further into the presentation, it was obvious there was some level of mistrust of the agent. Specifically, she hated bank drafts, and he forced her to do it.

My solution was simple; put it on a separate account away from your life savings and set it up on auto debit draft. And save around $150 a year, too.

That way you'll have both peace of mind about your banking privacy, and your more affordable, equivalent-value coverage, that you'll save thousands on over your lifetime.

See the difference in how my wedge was different than, "Do you want to save a few bucks?"

 

[jdeasy]

Selling value on new business is important, but I find that price competitiveness over time, assuming you sold whole life, is what matters to the prospect, and is the primary motivation to keep or replace their policy.

However, when you replace another agent's policy, selling value beyond pricing is paramount, and is what solidifies the sale.

Meaning you have to wedge a concept in as to the "reason why" a replacement should occur beyond logic.

I had an appointment yesterday. Just took out 3 American Memorial policies last week (local Securus inventory).

When I asked them up front for what reasons they'd want to switch, of course, pricing was a reason.

But as I got further into the presentation, it was obvious there was some level of mistrust of the agent. Specifically, she hated bank drafts, and he forced her to do it.

My solution was simple; put it on a separate account away from your life savings and set it up on auto debit draft. And save around $150 a year, too.

That way you'll have both peace of mind about your banking privacy, and your more affordable, equivalent-value coverage, that you'll save thousands on over your lifetime.

See the difference in how my wedge was different than, "Do you want to save a few bucks?"

I replaced 4 policies in a home last week. 2 of the policies were 7 years old. One was a year old and one was a couple months old. They had called me to review things based on a recommendation from one of my clients.

I was able to save them a few dollars a month on a couple of them. A few dollars a month more on one and about even on another. They are geting $2800 cash value which was a bonus to them as that was not the reason for the review.

They simply did not trust the other agent and I did uncover some serious wrong doings on the agent's part.

For the most part FE is replaced on price. But there can be other reasons and David and I just mentioned a couple.

The "value" stuff and the "sell on price, die on price" crap comes from marketers for the overpriced companies.

When you are comparing fully guaranteed whole to fully guaranteed whole life the only real difference is will they qualify and the price.

Now, replacing term or UL with whole life? Yes, you can have that value discussion.

 

[WinoBlues]

Hey guys,

1)Are Whole Life policies "only" replaced because the client is able to find another company with more coverage for the same price compared to what they are currently paying?

2) In sales I have often hear the phrase "selling on value" not on price? How does this apply when selling Whole Life Insurance (Final expense products) ?

Thank you,

Funguy

In my experience it depends on who you are selling. My book of business is not one dimensional and neither am I.

Monday I sold a client a $25,000 GUL F-62 @$36. The value for her was the amount of face amount per premium dollar and the ability of short paying. Her husband, 64 male w/cancer history, on the other hand choose a siwl. However, he picked United Heritage at a higher premium (+$15)over the other plans I showed him. The value for him was the quick claims paying. Same family, different wants. I really doubt I will ever be replaced in that home.

I recently replaced Bankers' and Primerca in a home. Reasons where terming out policies, lieing agent, price and they wanted me as their agent. Value was someone fixing their problems. I really doubt I will be replaced in that home.

Lee

 

[VolAgent]

"Price only matters in the absence of value."
"Price is everything."

Both statements are pure BS. If so, everyone would be driving a Mercedes if all that mattered was value and if all that mattered was price, we'd all be driving Kias or Hyundais.

It is a spectrum. To some people price matters more than value, others value is more important. Most people are going to hover around the middle, they don't necessarily want the cheapest POS out there that isn't worth the paper it is printed on either. But they also don't want the highest quality if it means they can't afford it or it otherwise stretches their budget.

They want some level of quality, the guarantees of a product, but also at a price they can afford. Also, intangibles become important when there isn't much difference. If two agents are showing similar products with competitive rates, the more likeable, trustworthy agent is going to win nine times out of ten.

The moral is, you don't have to have the absolute cheapest product out there, but you need to be in the ballpark. And you need to be someone they can trust, like and feel comfortable buying from.

 

[Toranaga]

I replaced 4 policies in a home last week. 2 of the policies were 7 years old. One was a year old and one was a couple months old. They had called me to review things based on a recommendation from one of my clients.

I was able to save them a few dollars a month on a couple of them. A few dollars a month more on one and about even on another. They are geting $2800 cash value which was a bonus to them as that was not the reason for the review.

They simply did not trust the other agent and I did uncover some serious wrong doings on the agent's part.

For the most part FE is replaced on price. But there can be other reasons and David and I just mentioned a couple.

The "value" stuff and the "sell on price, die on price" crap comes from marketers for the overpriced companies.

When you are comparing fully guaranteed whole to fully guaranteed whole life the only real difference is will they qualify and the price.

Now, replacing term or UL with whole life? Yes, you can have that value discussion.

I had this discussion with a client the weeks ago. He had a 40, 000 term policy he was paying $140 for. It expires on three years. He was frustrated that he was paying so much and likely would get nothing out of it. I explained to him that I could put him whole life. $15, 000 for around $70. Slightly higher cost per unit, but permanent and building cash.

Well he made his decision with all the facts. I sold him the policy.

This morning his other agent calls me to ask about it. Nice enough guy but I can tell he's looking for an angle. He is one of the big captives. Tries to play me of a little bit as a no name small fry. Any way I calmly laid it all out to him. He is focused on the fact that my client now has less coverage. I had spoken to him in depth about this as he made his decision.

I immediately called the client to cement the deal. His words?

Steven I just see more VALUE in the WL.

 

[Indy007]

I had this discussion with a client the weeks ago. He had a 40, 000 term policy he was paying $140 for. It expires on three years. He was frustrated that he was paying so much and likely would get nothing out of it. I explained to him that I could put him whole life. $15, 000 for around $70. Slightly higher cost per unit, but permanent and building cash.

Well he made his decision with all the facts. I sold him the policy.

This morning his other agent calls me to ask about it. Nice enough guy but I can tell he's looking for an angle. He is one of the big captives. Tries to play me of a little bit as a no name small fry. Any way I calmly laid it all out to him. He is focused on the fact that my client now has less coverage. I had spoken to him in depth about this as he made his decision.

I immediately called the client to cement the deal. His words?

Steven I just see more VALUE in the WL.

Nice! Did you at least offer him an option of doing $30k or +-$140/mo? Would have only dropped $10k face for same premium, and he was already used to paying the $140/mo anyways.

 

[Cyborg7]

Its amazing that the agent being replaced thinks that he or she can accomplish something by calling the replacing agent !!!

 

[Thad.Sipple]

I replaced 4 policies in a home last week. 2 of the policies were 7 years old. One was a year old and one was a couple months old. They had called me to review things based on a recommendation from one of my clients. I was able to save them a few dollars a month on a couple of them. A few dollars a month more on one and about even on another. They are geting $2800 cash value which was a bonus to them as that was not the reason for the review. They simply did not trust the other agent and I did uncover some serious wrong doings on the agent's part. For the most part FE is replaced on price. But there can be other reasons and David and I just mentioned a couple. The "value" stuff and the "sell on price, die on price" crap comes from marketers for the overpriced companies. When you are comparing fully guaranteed whole to fully guaranteed whole life the only real difference is will they qualify and the price. Now, replacing term or UL with whole life? Yes, you can have that value discussion.

Question do you or anyone else, ever consider the contest ability starts over when you replace. Just asking and I am not being confrontational, I had someone ask me the same question and I thinks it's a good question, even though every client situation is different.