Did you ever think our approach to selling life insurance might be all wrong? We go through a needs calculation to determine how much life insurance our clients need and present them with a proposal letting them know how much it will cost. Sometimes we hear a little gasp, sometimes we don’t, yet they give the go ahead to apply for the coverage. Once the underwriting process is done, the client has pondered the price even more and decides they are not comfortable with the cost. They may not express it to you that way, but that is the issue.
You know you did a great job in explaining the benefits of the product and how their family will be taken care of, but they still don’t take the coverage. Perhaps finding the client’s “Premium Comfort Zone” and working with that may be your answer to making sure the coverage is placed. Here is an example:
Sarah is a 45 year old single mom with two small children. She fully understands the need to have life insurance for the benefit of her children just in case something should happen to her. She makes a decent income yet is on a tight budget. You propose $500,000 of 20 year level term to keep the price down which is $60.23 monthly if she qualifies at preferred non-tobacco. You ask Sarah if that premium is ok and she hesitatingly says yes. She applies for coverage and receives the preferred non-tobacco rate classification, but then does not respond to you when you let her know the policy has been issued and is ready to deliver. You are a bit confused as to why this is happening. She seemed ready to buy. Well, it may be that the amount was not fully in Sarah’s “Premium Comfort Zone”, particularly after she reexamined her budget while going through the underwriting process.
Instead of giving up, why not offer Sarah some options? First, if you can find out what her premium comfort zone is, that would help. Come to find out Sarah’s was actually $40.00 monthly. Here are some options that might work:
- 15 year level premium term for a $450,000 benefit costing $42.14 monthly
- 20 year level premium term for a $300,000 benefit costing $39.75 monthly
Now you have made Sarah’s life insurance more affordable to her and more comfortable for her to pay for. And with regular reviews you can add to her coverage as her income increases.
You can work in a similar way if your client comes back with a rating. Don’t let them simply drop the coverage! Give them reasons to place the rated case and alternatives that make the coverage affordable for them. Keep them in their “Premium Comfort Zone” and get them the coverage they need! Give us a call to give you a hand. We are happy to help!