Guidance for New Life Agents

[xrac]

.....they get calls all the time from "financial advisors" (many of whom are life insurance agents in the witness protection program).....

There is a guy that I know that recently started working for American Income. They are the bottom of the barrell in my book selling small amounts of life, cancer, and accident. He calls himself a benefits consultant when he actually sits across the kitchen table on preset appointments selling small amounts of the above. He must be ashamed of what he does.

DHK is right on. I say let's be Life Insurance Agents and proud of it. You will never be ashamed of being a life insurance agent when the lady has just lost her husband and you are able to hand her a check for $50,000, $100,000, or $250,000. You will be walking on air and very proud of what you do.

 

[Mark]

I'm proud to be an Insurance agent and help people.

You don't know how important insurance is until you need it.

 

[juswannahelp]

Felt like I hit a gold with this thread! Thanks DHK!

Now, I do have a few questions:

What should I do since my "mentor" really wants me to push IUL?? I have the mindset of this being a career..so i wanna make sure i start off right.. in fact, my goal is to be financial planner with special knowledge in in investments, insurance, and maybe taxes... investments and insurance for sure!

This post especially fires me up because i am actually willing to go door-to-door rather than make a list of friends.. but i do believe my friends need insurance.. so i will hit them up eventually... can you refer me, or tell me, a great script for going door-to-door?? also, how soon should i start hitting businesses up?

also, just because you've mentioned to just tell everyone i am an insurance agent, would it still be ok to say a financial planner because of the fact that the company im working for is a financial services marketing company with end goal of selling insurance after freeing up income...

thank you again for your posts.. i highly appreciate it.. and as long as this forum is around.. i do plan on giving back... goals is to learn the game, beat the game, then teach somebody else to beat the game...

 

[DHK]

Sorry, but I didn't see your post until today. Let's attack this one at a time:

What should I do since my "mentor" really wants me to push IUL??

FIUL can be a great product for the right person. Think about how much TIME it will take to explain the benefits and the proper way to utilize it. Some people won't "get it".

And truthfully, the benefits of a permanent policy don't make economic sense unless there's a need for insurance in the first place.

No need for protection = no ethical insurance sale for you.


BTW, what does the word "push" tell you? It says that YOU are pushing YOUR agenda upon another... probably against their will.

Hopefully, your mentor means to find QUALIFIED PROSPECTS for FIUL.

I have the mindset of this being a career..so i wanna make sure i start off right.. in fact, my goal is to be financial planner with special knowledge in in investments, insurance, and maybe taxes... investments and insurance for sure!

Nothing wrong with that! But you can't start off your career being a "trusted" advisor.

Think about it: Who is trusting you? Your company? Advisors are trusted by clients, not companies.

You will add to your knowledge and capacity over time. You'll find your favorite niche products and markets.

You build a clientele with multiple product sales that binds the client to you... not with multiple licenses, designations, or some "comprehensive" approach.

You should be comprehensive in your product sale (meaning that you want the product to fit well with everything else your prospect has), but you don't have to be completely comprehensive with explaining your recommendation.

If it were me, I'd be selling as many policies as possible. Then show how they can turn these policies into financial assets that THEY can enjoy while they're still alive!

This post especially fires me up because i am actually willing to go door-to-door rather than make a list of friends.. but i do believe my friends need insurance.. so i will hit them up eventually...

For friends & family: (This will only "work" if you haven't already talked to them about your new position.) Send them a letter announcing your new career. You may want to include a "Menu of Services" on everything you can help them with. Then continue to send them a newsletter of some kind. As with anything, get compliance approval as needed.

can you refer me, or tell me, a great script for going door-to-door?? also, how soon should i start hitting businesses up?

Residential door-to-door may require a solicitors permit and local business license. The total amount could be $500+ JUST to target residences? And with unemployment as it is, there may be people at home who will take up your time... just to find out that they "have no money".

Business door-to-door has no requirements of a permit. They're not on the DNC lists. They have people WORKING there at are probably ON those lists... but they're WORKING there.

If you look at the potential "menu of services" for businesses compared to residences... where do you think you should be spending more of your prospecting time?

Search the forum for the 5-ways approach. Just make sure you know how to solve each of them.

also, just because you've mentioned to just tell everyone i am an insurance agent, would it still be ok to say a financial planner because of the fact that the company im working for is a financial services marketing company with end goal of selling insurance after freeing up income...

You and I are both "in the industry". We think "financial planner" sounds better. If you feel better with that title, go for it.

But if you ask 20 people what a financial planner does, you'll probably get 20 different answers.

If you ask 20 people what a life insurance agent does... how many different answers do you think you'd get?

You'll get LESS appointments, but better quality ones.


Here's a tip: Make up your own rate sheets based on a "money purchase". Make up TERM rate sheets for what $25/month, $50/month and $100/month would buy in term life insurance.

$25/month for 10-year term
$50/month & $100/month for 20-year term.

Male/Female; Smoking & Non-Smoking for both. Only quote STANDARD underwriting. 6 out of 7 policies are issued as standard... so why set yourself up for failure with a new policyholder?

Additional tip: Have each amount "color-coded" to the underwriting banding. For example: under $100k; $100k-$250k; $250k-$500k; $500k-$1m; $1m+. You may be able to get them MORE insurance for just a couple of dollars more per month if they go to $250k instead of $195k. Insurance gets cheaper all around this way.

If someone says they saw an ad for term and they could get more... just point out the "bait & switch" tactics being used by attracting the application with "superman" rates, and issuing the real offer at standard. And that you, as a professional, don't stoop that low to help people do business with you. And yes, you can compare it to other "bait & switch" tactics used by other industries - like car sales.

As part of your approach to business owners... you won't see the business owner in every business you walk into. You'll get more managers and receptionists than owners. Might as well capitalize on their quick 2-5 minutes!

You can say "I do advanced business planning with business owners, but I also help people obtain affordable quality term life insurance. I can usually help people get that insurance for about $50/month. May I ask your age? Do you use tobacco of any kind? For $50/month, you can buy $XXX,xxx of life insurance. Do you have life insurance now? This quote is for the least amount of insurance assuming you're in okay health. If we complete an application, we can see what the offer can really be, and you will know how much insurance you can buy for $50/month. The application takes about 5 minutes to complete. Do you have your drivers license?"

If they want MORE coverage, show them what $100/month could buy.

If they can't afford $50/month, show them what $25/month could buy.

Compare it to something that they're already paying that much for every month.

$50/month = cell phone plan
$25/month = pizza delivery
$100/month = family cell phone plan (that's the best I came up with).

How long does it take to tell someone how much insurance they can buy for $50/month? With a good rate card... less than 10 seconds.

How much money can you make on the sale of 1 $50/month plan every weekday?

If they are underwritten for a better underwriting class, just say that the same $50/month will buy MORE insurance coverage for them and their family.

Now, if you sell a lot of TERM like this... (and hopefully you have a simplified application process), you send them newsletters and keep in contact with them. You'll probably convert a good amount of these every year as you review with your policyholders the benefits of conversion. (You did say you wanted to build a career out of this, right?)

Term is inventory for conversions for the career-oriented producer!

If you're going to go at this business "cold", you need a FAST presentation. Giving a term life insurance quote within a few seconds will certainly help... and you're not asking for a ton of money to get started working with you.

You're helping working people get additional coverage they should have without asking for a lot of money.

Will you be selling a lot of $1million policies? Maybe not.

But if you drill down... we don't get paid to sell FACE amount.

We get paid to sell PREMIUM.

So make it easy for people to buy an amount of insurance that's easily affordable.

Keep in touch with newsletters, and they'll soon see you as more than a 'life insurance agent'.

 

[lucasr]

Great info DHK! Thanks for taking the time to put all this together!

 

[juswannahelp]

thank you for the advice and guidance DHK! I really appreciate what you're doing and actually taking the time to give back.

In response to your post, i got a few questions:

I plan on hitting the college-savings plan market with IULs. Preferably young couples 25-35 with young kids purchase an IUL policy. Since they do have kids, they have reason for insurance, and i believe IULs are great for college savings plan. Do you think the people in this market makes the IUL the right product for them??

i have been doing a lot of research and majority say that SUCCESSFUL agents stick to one market that needs one product... with that fact in mind, and your advice to sell term then convert, should i start by selling term to the market im targeting, then convert them later on??

Im sold on your tip on grabbing quick sales for term because of the fact that I wont have to make appointments to explain IUL stuff.. I will be utilizing it to build a great client base... but how long should I wait to review if i know that the client that gets term,may actually be better off with an IUL policy (for the simple fact that people should be putting money away ASAP to grow more)?
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i accidently hit the post reply button... but i got one more question:

what do you think of getting training from Lew Nason?? insuranceproshop??

Will it be good for begginers??

 

[VolAgent]

I swear, if I hear one more newbie come on here talking about pitching IULs, I'm going to hurl.

I guess its the new thing for IMOs to push. FIAs have gotten too much heat, so now everyone is moving over to IULs until the microscope gets turned on them by regulators.

 

[DHK]

First, the Insurance Pro Shop & Lew Nason has some really good stuff! If I were getting started, the Mortgage Life Tool kit is a great buy to help you understand the unique benefits of permanent life insurance.

That said, your first job is to sell the death benefit protection. You can then commit them to the term application & policy.

There is nothing wrong with asking for an alternate policy to show instead of the term... as long as it is appropriate for the situation.

But notice the difference here: At first, you wanted to sell IUL as the 1st sale. Instead, you sell term and convert upon delivery! Which might be the easier sale?

You can talk about the benefits of a permanent policy upon delivery. You can also talk about the term conversion benefit while you're taking the app. You can say something simple like "This policy is guaranteed convertable to a permanent policy too. This way, if your needs change, we have the option to convert it during the term period. When this policy is issued, I'll share with you some reasons why thousands of others convert their policy. You might like it. But one step at a time."

Plant a seed. Promise to discuss it. But you've already got their attention for the term. Don't blow it. "You can't have rabbit stew until you catch the rabbit."

Heck, while you're waiting for the term policy to be issued, do a complete fact-finder on their entire situation. They already know that you've "made your sale". This should be much easier to get information from them because they've already made a buying decision from you.

With the new information from the fact-finding process, you can then create an additional recommendation and ask for an alternate policy to be presented and issued. Then let the client choose between the 2 different options.

IUL is a good kind of policy for the right market and the right needs for the client.

However, you're looking to market a TOOL instead of focusing in on a profile. Focus on the profile of YOUR ideal client. Learn their problems and know how to quickly and easily help them to improve their situation.

 

[Neutrina]

Great post DHK! Thanks for the advice

 

[juswannahelp]

Wow! I am blown away!

So I will be going with training from Lew Nason... I did call him and he recommended to take up Found Money Management and how to close 9 out of 10... should I go with his suggesstion or take up the one you're talking about considering the fact I am a TOTAL NEW GUY in this industry.

how do I exactly do a fact-finder?? sounds like ill find this type of training with insuranceproshop guys.

So this is what the system i am devising (or what you have devised) looks like: Prospect (go to business and sell term to people that are working), while i am writing up an app, plant permanent policy seed and promise an informative meeting. While waiting for the policy to be issued, call and set up appointment for fact finding session or do i do the fact finding session over the phone, then if appropiate FOR THE CLIENT, set apppointment to present IUL. what do you think??