We Already Have Life Insurance!...

[stormtracker]

There's always the old debit agent technique: "let's add a little cushion today, just in case your current policy collapses..."

 

[zmazmzm]

Thanks all for the excellent information! I'm really loving this forum. I can see my self getting better and better from what I'm learning here.

 

[ztabler]

"And just in case there are any financial math whizzes and or actuaries lurking out there....If the beneficiaries set up a perpetuity with the life insurance proceeds, at 8% annual effective interest:

$250,000 x (.08/1.08) = $18,518.52"

Can anyone explain to me how the (.08/1.08) was calculated? Thanks

 

[myinsurebiz]

Some excellent responses - I've bookmarked this thread.

Since we sell over the phone - the "get out the pen" thing doesn't work to well. I just say - " That's great you've planned ahead - but what kind of policy do you have?" Heck - they rarely know.

If I'm selling FE - I then say - "Look Ms. Jones - glad you have LI already - that really shows you love your family. Why not leave that policy to your ______ to live on and use a policy like mine for the burial expenses. I'm sure ______ will appreciate you when the time comes.

If I'm selling Term - I say - "When you bought your policy back in ______, prices were a lot different. Today rates may be better and there are a few new plans available that just may provide better benefits for your family when they need it.." - " What type of policy do you have - is it one of those old term ones that have no value at the end?"

There are many ways to skin a cat.

In my world though - we actually target those that don't presently have any coverage. If they do - then we see if we can help them - but in most instances, we just move on to the hunting ground . . .

Tom

 

[Delta76]

When I sit with someone for MP and they tell me that they already have LI, what's the most tactful way you'd ask to compare what they have?

"Great, tell me more about what you have currently..."

 

[LGilmore]

I see for some the talking em into summission still works...

 

[CFP83]

"That's great. Do you have the old kind or the new kind (new CSO)?" "Uh I don't know"
"Do you own it or rent it? If you rent it for how long?"
"Uh I'm not sure"
"Is it a guaranteed one or a non-guaranteed one?"
"Ha ha I really don't know"
"Well would you be open to finding out exactly what kind you have or is it a non-issue?"
Yes>apptment, no>bye

Very nice Franz...my life insurance factfinding is very similiar.
Some questions I like to ask:
What are your thoughts about life insurance?
How long do you want your coverage to last?
What formula or process did you use to determine the amount of current coverage you have?
Would you like to leave your spouse better off than she is now, worse off, or as good as?
Is it any less important for your wife to retire or your kids to go to college if you are gone?

 

[ProsperSBC]

When I sit with someone for MP and they tell me that they already have LI, what's the most tactful way you'd ask to compare what they have?
My ideas:
If there was a way I could save you some money on your monthly premiums, maybe even with higher coverage amounts, would that be something that might interest you?
-or-
Are you sure you're not paying too much for that coverage?
etc. etc.

What's your approach? Also, what in the world are you looking for in that policy? Just the face and premium? I'm so new I don't even know what to look for. Please elaborate and thanks in advance!!!!!!!!!!!!

Thats kind of like you a car salesman looking at my benz and wanting me to get into a kia. Sell the value and the price won't matter I don't care what you are selling. And by the way I don't have a benz but wanted to use a fitting metaphor.

 

[Franz Kafka]

I like yours, too, CFP with some reservation on this one.

Is it any less important for your wife to retire or your kids to go to college if you are gone?

I would think it was a trick question! LOL

Kidding aside, when all else fails, I just flip out 30 yr ROP for po folks and 10 pay WL for rich folks because deep inside they can't say no to cash in their hands.

 

[zmazmzm]

Thanks all! Some real good stuff here!!!