How to convince customer to move from Primerica?

[Newby]

I contacted some one that I knew from some previous business. I let her know that I was working with AIG American General now, and that she might want to take a look @ our life insurance. She told me she had life insurance. Naturally, I asked the details. She has a Primerica term policy. From the info she has given me, it appears that the Primerica agent outright lied to them about the details of the policy. According to her, the Primerica agent said they had a term policy that they would have forever and it would never go up in premium. I explained a bit about how term life worked. She regurgitated some Primerica propoganda that the agent said they should "buy term and invest the rest." I asked her if he had ever taught her how to "invest the rest." She assured me she would talk to her husband and have him call me.

Now, I really don't need their business. This is a hard working family with small kids, and I'd hate to see them get screwed. I'd like their business, but more than anything I just want them to realize they've got their life insurance in the wrong place. I gave her a quote based on the same level of coverage, which is about 6 bucks cheaper /mo. I don't know if that alone is worth their "hassle."

What facts should I present to them to make them realize that Primerica sucks.

I have a couple that I am writing this week that have had term with Primamerica for 20-years.

They feel like they pissed thier money away and didn't understand that their rate would keep going upwards. All they really wanted it for was final expense. Now they are starting over with the correct product for their need. The Primamerica agent is all over them trying to re-write again but they think Primamerica is the biggest crooks in the world.

I guess the best question to ask for the "buy term invest the difference" people is..."How has your investment gone for you so far?" Most of them are NOT investing the difference.

 

[Delta76]

Why not buy a smaller car and invest the difference?

Why not live in a smaller home and invest the difference?

Why not have two kids instead of three and invest the difference?

Permanent insurance isn't always for needs, it can also be for wants. What does the client want to have happen? Permanent coverage basically allows him or her the option to keep the coverage or change his mind and surrender it for a gain in most cases. The client may not need the coverage for income replacement at age 65, but maybe he will. Maybe instead of income replacement, he wants to pass on money tax free to the kids after his death. Maybe he wants to take a higher withdrawl rate on his investments (think SPIA) and is comfortable knowing the assets will be replaced at his death.

Most clients don't know where they will sit in the next thirty years, permanent coverage just gives them options.

 

[MIBizInsurance]

Why not buy a smaller car and invest the difference?

Why not live in a smaller home and invest the difference?

Why not have two kids instead of three and invest the difference?

Permanent insurance isn't always for needs, it can also be for wants. What does the client want to have happen? Permanent coverage basically allows him or her the option to keep the coverage or change his mind and surrender it for a gain in most cases. The client may not need the coverage for income replacement at age 65, but maybe he will. Maybe instead of income replacement, he wants to pass on money tax free to the kids after his death. Maybe he wants to take a higher withdrawl rate on his investments (think SPIA) and is comfortable knowing the assets will be replaced at his death.

Most clients don't know where they will sit in the next thirty years, permanent coverage just gives them options.

A big /nod to options.

Term= you die, family gets X amount.
WL= options

 

[Delta76]

Survivior-

Your posts points out many rookie mistakes. Not a problem, we all started there, but you need to learn quickly.

1. Don't send out a quote for life insurance. Your job is to gather information, not give it until the appropriate time. You should have either stopped out to review their policy or gotten the information on what they have over the phone. You could have found out the cost difference was only $6 per month without sending a quote. You wasted your time and your now in a defensive position!
(as a side note, I have never found a Primeamerica policy that couldn't be replaced at a significant gain to the clients, make sure you are comparing apples to apples)

2. You are competeing on cost. If you compete on cost, you always lose on profit. Find out what they are trying to accomplish or find current pain (usually done through a fact finder or interview session), then design a solution that will help them do it or solve the problem. I could hire a monkey to compete on cost, deliver value.

3. You need to talk with the decision maker. From your post, it's obvious that the wife doesn't make the decision alone, it's also or only the husband. Set up a time to meet with both of them. If they won't meet, move onto the next prospect.

4. Find a mentor. You don't know what your doing yet. Find someone who does. 100% of nothing is less than 50% of something. It will speed up the learning curve and give you a fighting chance as long as your prospecting. Remember, if your not prospecting for new business or meeting with people during your pay-time hours, your doing something wrong.

 

[Quint]

One thing that the proponents of BTID never mention when discussing BTID is that the monthly cost is equal. If the permanent insurance plan is $100 month, then to really BTID your monthly outgoing cash flow to the BTID plan is $100. The BTID group always talk about their plan being cheaper and that bugs the #@$#@ out of me. Once you get someone to agree that the the monthly cost is equal then is becomes easier to to discuss the correct insurance/investing plan for the client which maybe permanent insurance or term or some other combination/product.

PS This is my first post on this board, just wanted to say Hello!