Needs Analysis / Fact Finder

[daveb]

Hi Everyone,
I'm spending many an hour going through this forum and am very grateful for all of you that contribute. I am learning quite a bit and look forward to one day making some sort of positive contribution myself.
I've recently gotten my license for Life A&H,and I've decided to go it alone,independent,be my own boss sort of thing.I'm appointed with a couple of companies thus far and looking to add a few more of course. I'm such a virgin in this new career that I still have to get my business cards printed up. Still looking for an answering service for phone numbers before I do so.
However,as my heading suggests,does anyone use a simplified fact-finder or needs analysis type of thing,to calculate how much insurance Mr Client should actually carry to adequately meet his and/or his family's true life insurance needs?
If anyone has something of this nature that you may be able to share with me,it would certainly be very much appreciated.
Thanks everyone.

 

[DHK]

Having a fact-finder and calculating someone's insurance needs are two different things.

A fact-finder collects data - both hard facts (like assets & liabilities) as well as soft facts (like how one feels about their current situation and what they'd like to change).

You can get a BUNCH of fact-finders by subscribing to The Virtual Assistant from National Underwriter.

Calculating someone's insurance needs? Who cares! How much can your prospect easily afford on a monthly basis? THAT'S the amount of insurance that matters!

If you boil it down, you are in the business of selling PREMIUM - an affordable premium, not the face amount.

If you can get $1 billion of life insurance for free, would you take it? Duh!

If it costs you $10 million per year for that $1 billion of life insurance, would you take it? Probably not!

What if I showed you some fancy software, literature and other illusions to show you how much greater your life would be for spending $10 million per year? Would it matter? Probably not.

Start with convertible term insurance and convert over time (and get paid AGAIN!). This is called deferred compensation and it's practically money in the bank for the agent that will service his book of business.

Now, if you want some guidelines, take a look at your company's "Financial Underwriting" guidelines. They will underwrite a certain MAXIMUM amount based on the client's age and income.

Here's a good fact-finder:
- If something happens to you, who needs money and how much?
- How much income does your family need to live on a monthly basis?
- Where do you think your widow would put the money she gets from your life insurance policy? How much do you think that might pay out in income without depleting the principle?

Now, there are 4 questions that must be answered when considering buying life insurance:
1. How much? An amount you can easily afford!

2. What kind? The maximum amount for the least amount of outlay - which is convertible term insurance.

3. Who from? Well, since I'm the only one here, I recommend that you buy it from me!

4. When? Today! Because I'm only recommending that you buy an amount that you can easily afford.


Don't make it harder than it needs to be.

 

[daveb]

Thank you DHK,I appreciate your input. Some great ideas.

I am aware the fact-finder and needs analysis are two different animals,I was just wondering if anyone had any standard forms that they use for simply filling in the blanks.

I know I could use a page off of a legal pad to write personal data or calculate amount of insurance needed (and I do like your take on the factor),but I thought there may be a more professional looking form(s) out there.

Thanks again for your suggestions DHK.

 

[VolAgent]

I know I could use a page off of a legal pad to write personal data or calculate amount of insurance needed (and I do like your take on the factor),but I thought there may be a more professional looking form(s) out there.

You know, no one ever really notices the form. And I've yet to see a fact-finder that has the touchy-feely questions on it that you need to be asking.

There was a time when I did use a fact-finder that was about 30 pages long. Needless to say, people found it intimidating and it was overkill. I soon stopped using it. A form just gets you distracted into the mechanics of it all. A legal pad makes you think about the next question you want to ask.

 

[daveb]

Thanks VolAgent,

Legal pad and good conversation it shall be.

Good to know.

I appreciate your feedback.

Have a great month!