Needs-based Insurance Sales - Problematic?

[HomeService]

Needs based selling works great in the life ins part of it, but you are correct, it's lost something in the health part. Most people believe health care is a right. So no, they do not need insurance to cover it. The government will do it. That's what they think. No need for insurance. They need a big screen TV.

 

[xosephchu]

Probably there are a few versions of needs based insurance approaches out there in the market. The version I am familiar with is used in life insurance.

It consists of 3 major steps. First is for the agent to find out the difference between what the customers wish to have and what they have in order to determine the shortfall. Then let the customers decide which shortfalls take priority based on the budget they have. After which the agent makes recommendation.

One of the objectives of needs based insurance sales is for the agent to do fact find before recommending product solutions. This is to ensure the customers do not buy into something they already have.

From insurance perspective, it is important for customers to have health, disability, critical illness, accident insurance etc, however, they may not afford all these coverages.

The agent has to work within customers' budget and as per their priorities in order to formulate recommendation.

Needs based insurance sales approach also creates opportunities for the agent to review the customers' insurance needs in the future. This may lead to additional sales as the customers probably will be in a better financial position to get additional coverages.