What are the phases of selling a term policy?

[Delta76]

Do you factor into the situation if the client is saving/investing for retirement? If not, do you think allocating funds to perm ins is still a good option?

The short answer is yes. I usually will sell just term until their Roth IRA is maxed out and they max out their employer's match. I simply sell convertable term and explain we have the option to convert at a later date.

 

[James]

I generally find people that buy or even entertain Whole Life or a good solid UL have their savings in place. I find people that don't save and invest have little tolerence for Insurance Premiums, and make little bones about it. For those I generally go for the yearly premium (term) upfront to protect myself from excessive charge backs. As far as Retirement Savings, once again, you have to qualify what that exactly means. I generally promote the idea of Post Retirement, such as when they are 80 plus and their savings is quickly vanishing. Most people that are saving and investing generally know they need more if they live past 80, 85 and so on, generally easily shown with any Review. Plus with the 40'ish crowd gives me 40 years to show significant cash value within their WL or UL.

 

[LGilmore]

You'll never last at NYL selling term.

Try this thought on for size.. how about sell them what they need?

Listen to them, what do they want to do?
How long do they feel they need insurance?
Sell convertable term if they want term. Simply because most folks need insurance alot longer than they think and when they realize that they often aren't healthy enough to shop anymore.

Good luck.

 

[James]

You'll never last at NYL selling term.

Try this thought on for size.. how about sell them what they need?

Listen to them, what do they want to do?
How long do they feel they need insurance?
Sell convertable term if they want term. Simply because most folks need insurance alot longer than they think and when they realize that they often aren't healthy enough to shop anymore.

Good luck.

Yes, good advice yet don't forget if you are selling Term with the idea of conversion at a later time you have to sell term from a carrier that has good WL or UL Policies. Which leaves out most of your inexpensive term carriers such as Banner and other companies so popular for low cost term. Which once again I would highly suggest shorter term policies from companies like Mass Mutual, Illinios Life and others like them, which simply makes their term more competitive in premium cost.

 

[TXINSURANCE]

Here is my experience selling life insurance....

Talk with client...
Submit application... (1 week or less)
Schedule paramed... (2 weeks out)
Goes through underwriting... (4-6 weeks out)
Find something in urine or blood that is not "perfect"...
Offer sent to client...
Client fails to return required documents (5-8 weeks out)

...Client rejects offer due to rate is not that of original quote (20-30% of time)

...Client fails to comply with outstanding requirements (20-30% of time)...

40-60% of time case actually issues...

Commission paid... (average time to be paid 2-3 months)


Ohhh and my favorite... GA screws up something on the case (95% of the time!!!)

I am referring to straight term major players AIG, ZURICH, BANNER, ETC., ETC., If you write jet apps, or no paramed this situation improves dramatically but the premiums shoot up through the roof.

Tip to anyone NEW in the business - BE CAREFUL TAKING ADVANCES!!! THIS IS A LOAN - THIS IS NOT YOUR MONEY!!!

Life is a great business but it is very cash flow negative in my opinion, like anything with insurance it takes YEARS to build and I doubt you will be driving a new Benz next week (unless you spend all of your advances!)

I know some full time life agents but make no mistake about it - it is hard work even if you are a superstar.

 

[StrategyMan]

It depends upon the person. Some people want rapport, some people just want to get right to business.

I like to go in and offer them 3 options. Term, Money Back and Perminent Insurance. I show them a pricing proposal that I've built in advance and just tell them to choose the option that is right for them. They point, and I fill out the application accordingly.

Portland Life Insurance, Portland Health Insurance, Portland Car Insurance

 

[J-Ro]

Couple questions.....
1. How do you handle broke people? Everybody I've quoted so far balk ove a $33 premium.

2. What sources are available for leads (lead vendors)?

3. As far as the term vs debate, would anybody mind giving me example situations for each?

Is there an association similar to the IHIAA that offers life insurance training?

 

[dgoldenz]

Couple questions.....
1. How do you handle broke people? Everybody I've quoted so far balk ove a $33 premium.

2. What sources are available for leads (lead vendors)?

3. As far as the term vs debate, would anybody mind giving me example situations for each?

Is there an association similar to the IHIAA that offers life insurance training?

1. Handle them by moving on to the next client. No sense in wasting your time with these. They will probably give you the most headaches too, even if you do end up writing them. Likely to lapse.

2. Budgetlife is a good one that we have used for years. Term Life Insurance - Quotes from Top Term Life Insurance Companies

3. This would probably take a year and a day to run through the scenarios....maybe later today if I get bored.