JustinRoehm
New Member
Hello guys,
The way I have sold single premium life is two-fold. First, I sold it to replace whole life policies that have been around for 30+ years. Let's say a client has a $10,000 whole life policy with $8000 dollars of cash value. With paid-up additions the face amount is about $11,500. They are only paying like $100-$300 per year. (These are pretty standard figures). I can 1035 exchange the $8000 cash value into a single premium life and get the client $12,000-$18,000 if they are healthy and are somewhere between 55 and 75 years old.
The benefit to the client is twofold: They save the money they are spending each year on life premium (freeing it to use on something else, like LTC), and they generally have a higher death benefit than before.
The only two downsides I generally get are they may not qualify based on health or they get put back into the 2-year contesting period (which is why I let them know that they need to be 100% honest with me about their health history).
The second way I sell these is as a financial device with a life benefit. Let me explain. I find it is much easier to show the living benefits with the death benefit instead of just the death benefit. If they have CDs or annuities to leave their children, I first show them the obvious fact that they can leave more money to their beneficiaries in a single premium. Many times they get scared that they might not be able to get to the money if there is an emergency. I then ask them about what kind of account that they have the money in. If they tell me CDs, savings, annuities, whatever, I get their interest rate information and figue out their tax-bracket.
I put all this information in my illustration software (western and Southern in this case) and then illustrate a spwl vs. the type of fund they have. Generally, they have CDs, and the interest rates are about 1-2% where I live. The illustration will show them what they will make each year after taxes, and compare it side to side with the single premium. The single premium has a 4.75% rate, but has surrender charges as well. Still, by the 3-5th year the single premium life cash value catches up and then starts significantly surpassing the CD. I then show a graph that illustrates all of this with colored bars.
Without a doubt, the single premium life wins with death benefit, and even quickly surpasses other forms of fixed benefit products with living benefit if they need to liquidate.
Also, I always add that with the single premium life it is like they are not even paying on life insurance, because they can take most of their money back within the first couple of years, or all of their money back at about the 4th year or so. This appeals a lot to people with fixed incomes as they can feel better about putting their money in an account that they can liquidate vs. spending on an expense where their money will never be seen by them again.
With all this being said, my primary target market for this is people age 60-80, relatively healthy, and preferably with money in CDs or other accounts that they do not have an immediate need for.
The problem is that I am 24 years old, and I do not meet people this age normally in my day to day routine. When I do, I can sell them.
What are some ways I can market towards these people effectively with my sales concept(s)?
I have just bought some FE leads for the first time. I also have about 500 names of people who fit this target market on cold call lists from Western Southern. I have tried some cold calls geared towards these people, with no success yet.
One of my ideas is to call local YMCAs to setup a time where I can throw a nice little pizza party for the seniors and introduce myself.
Other ideas would be appreciated.
Thanks.
The way I have sold single premium life is two-fold. First, I sold it to replace whole life policies that have been around for 30+ years. Let's say a client has a $10,000 whole life policy with $8000 dollars of cash value. With paid-up additions the face amount is about $11,500. They are only paying like $100-$300 per year. (These are pretty standard figures). I can 1035 exchange the $8000 cash value into a single premium life and get the client $12,000-$18,000 if they are healthy and are somewhere between 55 and 75 years old.
The benefit to the client is twofold: They save the money they are spending each year on life premium (freeing it to use on something else, like LTC), and they generally have a higher death benefit than before.
The only two downsides I generally get are they may not qualify based on health or they get put back into the 2-year contesting period (which is why I let them know that they need to be 100% honest with me about their health history).
The second way I sell these is as a financial device with a life benefit. Let me explain. I find it is much easier to show the living benefits with the death benefit instead of just the death benefit. If they have CDs or annuities to leave their children, I first show them the obvious fact that they can leave more money to their beneficiaries in a single premium. Many times they get scared that they might not be able to get to the money if there is an emergency. I then ask them about what kind of account that they have the money in. If they tell me CDs, savings, annuities, whatever, I get their interest rate information and figue out their tax-bracket.
I put all this information in my illustration software (western and Southern in this case) and then illustrate a spwl vs. the type of fund they have. Generally, they have CDs, and the interest rates are about 1-2% where I live. The illustration will show them what they will make each year after taxes, and compare it side to side with the single premium. The single premium has a 4.75% rate, but has surrender charges as well. Still, by the 3-5th year the single premium life cash value catches up and then starts significantly surpassing the CD. I then show a graph that illustrates all of this with colored bars.
Without a doubt, the single premium life wins with death benefit, and even quickly surpasses other forms of fixed benefit products with living benefit if they need to liquidate.
Also, I always add that with the single premium life it is like they are not even paying on life insurance, because they can take most of their money back within the first couple of years, or all of their money back at about the 4th year or so. This appeals a lot to people with fixed incomes as they can feel better about putting their money in an account that they can liquidate vs. spending on an expense where their money will never be seen by them again.
With all this being said, my primary target market for this is people age 60-80, relatively healthy, and preferably with money in CDs or other accounts that they do not have an immediate need for.
The problem is that I am 24 years old, and I do not meet people this age normally in my day to day routine. When I do, I can sell them.
What are some ways I can market towards these people effectively with my sales concept(s)?
I have just bought some FE leads for the first time. I also have about 500 names of people who fit this target market on cold call lists from Western Southern. I have tried some cold calls geared towards these people, with no success yet.
One of my ideas is to call local YMCAs to setup a time where I can throw a nice little pizza party for the seniors and introduce myself.
Other ideas would be appreciated.
Thanks.
