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Hey everyone. I'm new here, but I thought I'd get right in and post about one of my favorite topics: life insurance sales. This advice may just be worth what you paid for it. But nevertheless, I've sold a ton of life insurance by following this very simple process. It is important to keep in mind that I was a multi-line insurance agent. So, most of my life prospects were existing customers, which undoubtedly is different than being a life-only agent.
First, you must establish need, and get an appointment.
I've found the the best way to start this conversation is to ask this exact question: "Who has your life insurance?" By doing it in this manner, you're implying that it's so important you assume the client already has it taken care of, just with some other carrier. The reality, though, is that most don't.
You'll almost always get of one two replies. The first being, "I have it through work." Your response? "Great! How much do you have?" Their response is almost always, "I don't know". Then, say this exact phrase, "Oh. Well, we should probably talk about that then. When is a good time for us to talk more"?
The second reply is even easier to respond to. "I don't have any." Your response, "Oh. Well, that's probably something we should talk about then. When is a good time for us to visit?"
You see, by asking them, "who has your life insurance," you politely inferred it was already taken care of. The second most important piece is in your response, with the word, "Oh." Of course, be friendly about it, but I've found it to be a magical word that creates a slight sense of urgency without being pushy. Do this, and you'll see your appointment scheduling increase, and client engagement will improve as well!
OK, you've got the appointment. Now what?
Like everything in this post, this is only my opinion. A Life Needs Analysis is for the birds. It was probably created by someone who felt obligated to prove the client's need to them by some labor intensive process. Remember, not everyone likes insurance as much as you do. Plus, it is my experience that you only have, on average, about an hour's worth of time before you lose the client's interest. That includes establishing need, presentation, and application. Use it wisely!
So instead of a life needs analysis, try saying this. "The general rule of thumb is to have between 6 and 10 times your income of life insurance benefit. Based on my experience, doing a life needs analysis usually comes out to be around 7 times. Would you like to complete an analysis, or do you think 7 times your income sounds like a good place to start?" Guess what, I never had anyone say, "let's do a needs analysis."
Phew! OK, you're 5 minutes in. They've agreed to meet with you and discuss life insurance, and you've established how much life insurance coverage the person should be carrying. You're off to a great start!
Now, the fun part. Tell them, "I'd like to show you a brief rundown of all the products we have, the differences, both in price, and features, so you have a good understanding of what each one does."
Show them all your products, starting with the most expensive monthly payment. You can even say, "don't fall out of your chair when I show you this first product. It's very expensive, but you deserve to know why." Then, simply explain this product, how the cash accumulates, etc. (side note. it's up to you to know your own products, as I can't speak to them.)
Work your way down, all the way to the cheapest term product. Show the pros and cons on each, and be clearly honest. Remember, you are NOT trying to pitch a certain product to them.
Now that you're done, it's as simple as this: Ask the client(s), "which product do you LIKE the best." Now, shut up and let them answer! My experience tells me the client will almost always say they LIKE a permanent product over a term one. Now, it's as simple as working for THEM to find a combination of permanent and term products that fit their budget.
Selling in this way doesn't even really seem like selling. It's advising, and then helping them get into the product they like most. Try it! Appointments, Premium per sale, customer retention, and referrals will all improve over time.
Additional notes:
Yes, I know there are more ways than one to skin a cat. I've you're protecting young families, this is a great way to do it.
Could you be more accurate by doing a needs analysis? Of course. But, what's more important? Protecting a lot of families with way more coverage than they had before, or getting a few people nailed down to the exact amount of coverage? I vote for protecting as many families as you can.
A quick list of "Don'ts".
DON'T ASK HOW MUCH THEY CAN AFFORD. They'll never tell you the truth. Instead, ask them which one they like, and help them into a solution.
DON'T SELL A LOWER DEATH BENEFIT to get a higher premium if they really need more coverage first. Stick with term if that's all they can afford. If you don't, you're giving the profession a bad name.
DON'T SKIP ANY OF THIS PROCESS! If you do, you're missing out on future sales. Help them understand the value of a permanent policy, even if they only buy term.
The beauty of selling life insurance is that unless you're just truly evil, chances are the client will leave your office better protected than when they came in. You're not selling cheap steak knives. You're protecting lives. Feel good about that every single day.
Happy Selling,
First, you must establish need, and get an appointment.
I've found the the best way to start this conversation is to ask this exact question: "Who has your life insurance?" By doing it in this manner, you're implying that it's so important you assume the client already has it taken care of, just with some other carrier. The reality, though, is that most don't.
You'll almost always get of one two replies. The first being, "I have it through work." Your response? "Great! How much do you have?" Their response is almost always, "I don't know". Then, say this exact phrase, "Oh. Well, we should probably talk about that then. When is a good time for us to talk more"?
The second reply is even easier to respond to. "I don't have any." Your response, "Oh. Well, that's probably something we should talk about then. When is a good time for us to visit?"
You see, by asking them, "who has your life insurance," you politely inferred it was already taken care of. The second most important piece is in your response, with the word, "Oh." Of course, be friendly about it, but I've found it to be a magical word that creates a slight sense of urgency without being pushy. Do this, and you'll see your appointment scheduling increase, and client engagement will improve as well!
OK, you've got the appointment. Now what?
Like everything in this post, this is only my opinion. A Life Needs Analysis is for the birds. It was probably created by someone who felt obligated to prove the client's need to them by some labor intensive process. Remember, not everyone likes insurance as much as you do. Plus, it is my experience that you only have, on average, about an hour's worth of time before you lose the client's interest. That includes establishing need, presentation, and application. Use it wisely!
So instead of a life needs analysis, try saying this. "The general rule of thumb is to have between 6 and 10 times your income of life insurance benefit. Based on my experience, doing a life needs analysis usually comes out to be around 7 times. Would you like to complete an analysis, or do you think 7 times your income sounds like a good place to start?" Guess what, I never had anyone say, "let's do a needs analysis."
Phew! OK, you're 5 minutes in. They've agreed to meet with you and discuss life insurance, and you've established how much life insurance coverage the person should be carrying. You're off to a great start!
Now, the fun part. Tell them, "I'd like to show you a brief rundown of all the products we have, the differences, both in price, and features, so you have a good understanding of what each one does."
Show them all your products, starting with the most expensive monthly payment. You can even say, "don't fall out of your chair when I show you this first product. It's very expensive, but you deserve to know why." Then, simply explain this product, how the cash accumulates, etc. (side note. it's up to you to know your own products, as I can't speak to them.)
Work your way down, all the way to the cheapest term product. Show the pros and cons on each, and be clearly honest. Remember, you are NOT trying to pitch a certain product to them.
Now that you're done, it's as simple as this: Ask the client(s), "which product do you LIKE the best." Now, shut up and let them answer! My experience tells me the client will almost always say they LIKE a permanent product over a term one. Now, it's as simple as working for THEM to find a combination of permanent and term products that fit their budget.
Selling in this way doesn't even really seem like selling. It's advising, and then helping them get into the product they like most. Try it! Appointments, Premium per sale, customer retention, and referrals will all improve over time.
Additional notes:
Yes, I know there are more ways than one to skin a cat. I've you're protecting young families, this is a great way to do it.
Could you be more accurate by doing a needs analysis? Of course. But, what's more important? Protecting a lot of families with way more coverage than they had before, or getting a few people nailed down to the exact amount of coverage? I vote for protecting as many families as you can.
A quick list of "Don'ts".
DON'T ASK HOW MUCH THEY CAN AFFORD. They'll never tell you the truth. Instead, ask them which one they like, and help them into a solution.
DON'T SELL A LOWER DEATH BENEFIT to get a higher premium if they really need more coverage first. Stick with term if that's all they can afford. If you don't, you're giving the profession a bad name.
DON'T SKIP ANY OF THIS PROCESS! If you do, you're missing out on future sales. Help them understand the value of a permanent policy, even if they only buy term.
The beauty of selling life insurance is that unless you're just truly evil, chances are the client will leave your office better protected than when they came in. You're not selling cheap steak knives. You're protecting lives. Feel good about that every single day.
Happy Selling,
JMHO
