Clients with High Face Amount FE Wants?

[nfl72]

What are some the ways you guys are handling a client who wants way more coverage than they can afford. That is one of the areas where I seem to stumble. I can usually get through it but I have to believe there are some smoother ways of doing so.

I have two appointments tommorow and both have told me they would like to get $50,000 worth of coverage. They are both 60year old tobacco users on limited income and we all know they can not afford that type of premium. In the car business doing F&I we were always taught to bounce them off the ceiling to raise their sights, but I don['t beleive that is a good approach when selling insurance, as all they have to do is stop making payments and its chargeback city. I would rather lower there expectations to a more realisitic number before I give them any numbers at all.

 

[glock32]

Once you quote them on 50000 at age 60 you want be having to worry about them writing you a ck. they will know they can't afford it. In my 25 years experience I have rarely had a client request something they cannot afford. Most are very conservative and most people are just like we are very cautious about spending money

 

[WinoBlues]

Here are some options for you Mr and Mrs Stinky Breath.

$50,000. = $XXX.
$35,000. = $XX
$25,000. = $X

Or

during your fact find you get a budget. And do a money purchase presentation.

$XXX = $XX,XXX
$XX = $xx,xxx
$X = $ X,XXX

 

[nfl72]

I prefer not to even give them a payment on something there is no way they can afford. I don't like bringing negative thoughts into their buying process. I am looking for good ways to help them understand they don't need a $50,000 policy.

I dont want them buying a $15,000 policy when they want to buy a $50,000 policy either.. If they do they might be more inclined to keep shopping even after they buy my $15,000 policy.

I am looking for different ways of convincing them they don't need a $50,000 policy. When they buy my $15,000 policy, I want them satisfied.

I am thinking once I am in the home and they tell me theyd like to get a $50,000 policy my very next question should be; have you thought about what kind of monthly budget you would like to have? Which if I recall is similar to how Tim W sells so much.

 

[WinoBlues]

Lead with the budget question.

By the way, how do you know they do not need $50,000.00? 62 is still pretty young, they could easily have debt or have kids at home. I like ROP Term with reduced paid up or Wl/term combos for some of these situations. Depends on the client.

 

[nfl72]

95% of my clients are living month to month and have very little income. I like selling SIWL policies that when I leave the home I know they are approved. Every once in a grreat while I have people who can afford $50,000 face amount policies but they are so rare.

 

[WinoBlues]

95% of my clients are living month to month and have very little income. I like selling SIWL policies that when I leave the home I know they are approved. Every once in a grreat while I have people who can afford $50,000 face amount policies but they are so rare.

Then I would do money purchase. $X buys $XX Please sign here.

Recently a 50 year old FE ($25k) client called and wanted $75,000 of Insurance - 5'8" 265#s - for "about $100.mo"
Solution = $75,000.00 to age 70 then $54,927 paid up to age 95 $137 mo. Cash Values @ 5 yrs = $3,083 10 yrs = $8,808 20 yrs = $29,360. Know before you go PHI

$50,000.00 of Assurity SIWL would have been $136.mo. His $100 budget would have bought him about $35,000 of SIWL

There are a lot of ways to do what we do. No one best way.

 

[pcbinsurance]

Early on, ask if they can afford 2 dollars per day or 3 dollars a day for family protection. Then you can work from there. They might surprise you and tell you they can afford $4 or $5 a day. I like breaking things down to the lowest denomination since they can typically relate to that.

 

[jdeasy]

What are some the ways you guys are handling a client who wants way more coverage than they can afford. That is one of the areas where I seem to stumble. I can usually get through it but I have to believe there are some smoother ways of doing so.

I have two appointments tommorow and both have told me they would like to get $50,000 worth of coverage. They are both 60year old tobacco users on limited income and we all know they can not afford that type of premium. In the car business doing F&I we were always taught to bounce them off the ceiling to raise their sights, but I don['t beleive that is a good approach when selling insurance, as all they have to do is stop making payments and its chargeback city. I would rather lower there expectations to a more realisitic number before I give them any numbers at all.

I've found that I can't predict what people can or can't afford. They will find a way to afford what they want.

I ran into some folks living in what I would call a squatter's house up on the White River near Patoka, In. I wasn't sure they could afford anything. Ended up doing a $100/mo on the husband and $75/mo on the wife. When it came time to get a void check he couldn't decide which account to use. He had 3 or 4 checkbooks there. He just threw down and told me to pick one. I picked one up and the register showed over $15,000 balance. Made me curious and I wanted to look at the others but I didn't. That was over 2 years ago and they have never missed a payment.

As for the face amount these folks ar telling you there needs to a discussion as to why. It's certainly not for FE. I would find out what this want/need is and then offer up the best deal. If some of it is for FE than I would offer them a $10,000 to $15,000 whole life on each and then fill the void with what's needed. If it's a temporary need I would fill it with temporary, [term}, insurance.

One thing I never do is decide for people what they can afford.

 

[jacobtn]

I have found the best way to handle the large face amt desires when there isn't funds to pay for it, it to use the ADR rider. I write out on a paper that they will have 50k for accident, and 25k for natural death. Its only a couple bucks and just seeing the 50k down there sometimes makes a difference if they are hung up on it. Usually they decide to go with the 25k and leave the 50k rider off, but I have had a few ppl that I don't think would have bought otherwise.

When it is difficult is when you are replacing term Globe or AARP on someone who has an artificially high face amt (30-40k) and they are older. Usually they don't want to reduce their face amount, but they have to make a tough choice to pay more or drop coverage. Or lose it at age 80 if they do nothing!