What's a New Guy to Do?

[HomeService]

I disagree. If I die, my wife is in deep financial trouble. The mortgage is only one of many issues she'll have to deal with.

If we're sitting at the table with a life insurance agent, I'd hope they'd provide a solution to my wife's entire need - not just to address a portion of it.

To me it's ethically dangerous because the reason the entire need isn't being addressed is for the sake of the "quick and easy sale."

This, 100%. I guess I got my best training from Mutual of Omaha career side, they had a needs analysis we went through with the client. Actually, most captives I've worked for had this. Western Southern had it, AGLA. The point is, it's a roadmap and a discovery of what they need and it tells us where to go.

Most mortgage protection outfits I've been with, do not have this mindset, and they just simply go after that one need.

Now, in the debit world, where I worked, we mainly went after the one need which was final expense, it was the one concern that dominated. Same with seniors and FE. The FE is really the only thing to be worried about, usually they were retired and the home is paid off, so on. But there really were not other needs there to worry about. In the mortgage protection market, the folks have jobs and houses and cars and kids and so on, more needs.

 

[Crabcake Johnny]

I'll have to defer to someone who knows a lot more about how most mortgage protection companies work but from what I've read their focus is on non-med products. Anyone?

If so, it unnecessarily raises the rates for healthy people who would qualify for a lower rate with an exam.

 

[HomeService]

I'll have to defer to someone who knows a lot more about how most mortgage protection companies work but from what I've read their focus is on non-med products. Anyone?

If so, it unnecessarily raises the rates for healthy people who would qualify for a lower rate with an exam.

Yes, that's because they go in there, wham bam thank you ma'am, and just want to sell to the one need. So, they started getting the non-med limits up there, like 150K, 250K... no med so they can go in there and one call close and only cover the mortgage. Sad. If the client would submit a blood test, they could get the millions of coverage they need. This is the difference between a policy peddler, and a real financial planner. People who really sit down and do a life presentation like it was meant to be, shake their heads in disgust.

 

[cds251]

I disagree. If I die, my wife is in deep financial trouble. The mortgage is only one of many issues she'll have to deal with.

If we're sitting at the table with a life insurance agent, I'd hope they'd provide a solution to my wife's entire need - not just to address a portion of it.

To me it's ethically dangerous because the reason the entire need isn't being addressed is for the sake of the "quick and easy sale."

What if that was the only need that the customer wanted filled? You would walk away because you wouldn't sell only to this need.

That logic also means all FE agents are unethical because they are only satisfying the FE need and NOT the entire need?
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Yes, that's because they go in there, wham bam thank you ma'am, and just want to sell to the one need. So, they started getting the non-med limits up there, like 150K, 250K... no med so they can go in there and one call close and only cover the mortgage. Sad. If the client would submit a blood test, they could get the millions of coverage they need. This is the difference between a policy peddler, and a real financial planner. People who really sit down and do a life presentation like it was meant to be, shake their heads in disgust.

I am an Insurance Salesman........not a Financial Planner. I let the customer tell me what they want, and then find a way to solve that problem.

PS. I am at 42 Cases for this month.

 

[Full Throttle]

I think what John is saying is to at least ask them some questions to show them the total need. Then sell them what they want: all of it, some of it, or none of it.

 

[Crabcake Johnny]

I know this math is NOT correct so "don't tase me bro" but it should go something like this:

"Ok Mr. and Mrs. Smith, these are your options:

1) Just cover your mortgage without a medical exam for $60/mo
2) I can also offer you twice that coverage with a medical exam

Both of those options are what's called term insurance Mr. and Mrs. Smith. That means if you choose to buy more at "this" age, as you can see by the chart, it'll cost you "$$$$$$$$$$$$$" much.

Here are also some examples of rates for permanent life. You'll pay $250 per month but you'll also get...."

Now that's a presentation that goes over their options. They choose.

 

[HomeService]

What if that was the only need that the customer wanted filled? You would walk away because you wouldn't sell only to this need.

That logic also means all FE agents are unethical because they are only satisfying the FE need and NOT the entire need?
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I am an Insurance Salesman........not a Financial Planner. I let the customer tell me what they want, and then find a way to solve that problem.

PS. I am at 42 Cases for this month.

In the other thread when we were talking about this, I figured you were selling FE or whole life. Or term if need be. Are you going around knocking out whole life with mortgage term or only selling pretty much term?

Or are you going around and seeing if they need whole life or term or what exactly they need? I think you are doing the right thing and seeing what they need, from our previous discussions, which is different than what the basic mortgage protection saleperson does, who only sells term to the mortgage need.

 

[cds251]

In the other thread when we were talking about this, I figured you were selling FE or whole life. Or term if need be. Are you going around knocking out whole life with mortgage term or only selling pretty much term?

Or are you going around and seeing if they need whole life or term or what exactly they need? I think you are doing the right thing and seeing what they need, from our previous discussions, which is different than what the basic mortgage protection saleperson does, who only sells term to the mortgage need.

After a discussion with the prospect, I sell them what they want....whether its a simplified issue term or whole life or whatever it might be.

John's theory is great.....but that's all it is and in the real world its a little different.

One of my cases last week: Customer had applied through Banner for 100K term plan (with another agent) Had all his physicals etc etc and the premium came back at $108 (now keep in mind he has RA so he was always going to be rated). Took about six weeks from start to finish and the customer was well and truly fed up with the whole thing. So, I wrote him the same plan, with the same coverage, on a simplified issue basis for $98 a month. Written, approved and issued in the same week = ONE HAPPY CUSTOMER!

So yes, in theory fully underwritten is wonderful on paper. The reality is that very few qualify for those super duper, I haven't eaten a french fry before, ultra low rates.

 

[HomeService]

After a discussion with the prospect, I sell them what they want....whether its a simplified issue term or whole life or whatever it might be.

John's theory is great.....but that's all it is and in the real world its a little different.

One of my cases last week: Customer had applied through Banner for 100K term plan (with another agent) Had all his physicals etc etc and the premium came back at $108 (now keep in mind he has RA so he was always going to be rated). Took about six weeks from start to finish and the customer was well and truly fed up with the whole thing. So, I wrote him the same plan, with the same coverage, on a simplified issue basis for $98 a month. Written, approved and issued in the same week = ONE HAPPY CUSTOMER!

So yes, in theory fully underwritten is wonderful on paper. The reality is that very few qualify for those super duper, I haven't eaten a french fry before, ultra low rates.

OK, I see. Now, did you ask if he needed more than 100K? Who is the simplified issue with?
How much does it go up to, something like 150K on simplified? That sounds like you are doing right by the guy. Thanks for that response. I agree, not everyone can qualify for underwritten stuff. Most people cannot, in this day and age, sadly. We are getting sicker and sicker.

 

[cds251]

I might have asked him if he wanted more, I can't remember.......and even with moderate health conditions (HBP, CHOL, height weight etc etc) Simplified is normally going to be about the same rate any way as a fully underwritten - less the physicals.

If anyone has issues up to table 6 then they SHOULD go for Simplified........it does not make sense to do anything other than that.