How do I help families not see life insurance as a bill but rather protection for their family?

Question by ~Secretrose~: How do I help families not see life insurance as a bill but rather protection for their family?
I am on a crusade to help families become properly protected (create an immediate estate) in case of a loved ones untimely death. Of lately, prospects see life insurance as another bill. Although it is; can any life insurance agent please share with me how they get around to making sales in the life insurance industry? Thank you.

Best answer:

Answer by snakeyez82
im not a life insurance sales person, but i was a telemarketer for property & one thing i learnt is that ppl won’t ever buy anything unless they see whats in it for them to have that thing, whatever it is. You have to sell it to them, really well, show them why they need it, create or use actual stories of things that have happened to ppl, one scenario showing what would happen if they didnt have insurance & the other scenario showing what would happen if they DID have insurance, maybe make a powerpoint slideshow showing a few different scenarios, include pictures of staged or actual events that happened/may happen, include figures of how much money they’d actually save on funeral costs or something, show them how much it is worth having it, thats what i would do. 🙂

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4 comments to How do I help families not see life insurance as a bill but rather protection for their family?

  • chris.whitelaw

    I explain the role/definition of Insurance: protection from unexpected loss.

    Insurance takes the risk of a large medical expense, and turns it into predictable monthly payments. I hate it, but the best way is to provide some examples, or hypothetical situations.

    I’ve found that the biggest road block is: “I’m pretty healthy now so I’ll get some in the future. Like, when I have some more money.”

    So frustrating! They have to be told that if they or a family member develops some illness, there’s most-often a 12-month preexisting condition exclusion, so they’re going to have to pay, out of pocket, for any and all relating treatment.

    Insurance might seem expensive, but it’s only because health providers, doctors, and hospitals alike are buying new million dollar CAT Scan machines and ect every other week. When they get sick, the best treatments are going to cost a lot.

    Going out into the world without insurance is like betting on black in roulette.

  • Chris C

    You need to ‘sell’ them on the benefits, not the product. That’s as simple as it is. You need to focus on what the product does for the family, not what the product is. Focus on the concept and “problem” more than the solution/product. I have a lot of my clients that don’t realize they bought “life insurance”…but they own a pre-paid funeral plan or a pre-paid estate tax plan for example. Don’t get me wrong, when they sign the paperwork they fully understand it’s a life insurance policy, but in their mind they aren’t buying life insurance, they are pre-paying taxes and such.

    Life insurance is ALWAYS a tough sell on people though. People will never experience the benefits of insurance becuase the person insured will be dead when the benefits/value is realized. Some people will not see value in insurance and you can’t please everyone, no matter how much you beleive in the cause. Ask them if they own a toilet plunger or a spare tire. Most will say yes. Then ask them if they bought those before they needed it or if they bought it with the intentions of using it immediately. Insurance is like a toilet plunger. You never see the value in it and it just sits there and does nothing until you use it and need it. And when you actually need it, it’s too late to buy it, but you’d likely pay ANY thing to have it.

  • aaron p

    I usually ask people why they need insurance or why they wanted to meet with me today, and then they tell me. They usually say things like: to help pay taxes, to pay off the mortgage, to make sure my kids can go to college. Then I ask more questions to help them define their answer better.

    Folks will believe what you have to tell them if they come to the conclusion by themselves. If you try to tell them an answer, it’s too easy for them to think of how wrong you are.

  • brandon j

    there are some very helpful answers that have been posted. most of the time people view life insurance as a bill bc they do not know the value of it and a lot of times how affordable it really can be. you can ask questions like, “Do you insure your car?” and they say “yes.” then you can come back with “then why would you not insure your life?”
    it may be beneficial to get with someone that can mentor you and give you real life situations of how life insurance policies have benefited some of their prior clients. the main thing is to ask questions that peak that particular persons needs. for example a parent to young children may want to make sure their kids will be taken care of if something happens.
    just probe a little beforehand if you can. let them know that death is not and “if” but a “when.” and ask them what position their loved ones will be in financially if something happened. would their wife/husband have the income to pay off ALL of their debt, send the kids to college, and also retire to a similar lifestyle. 99% of the time the answer is no. the financially responsible thing for that person to do is to take a policy out that makes sure their fam is taken care of. you have to ask the tough questions. someday their family will thank you.

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