How to sell insurance effectively: key man coverage

By Dan Vinal

WebPrez Insurance & Annuity Videos


Want to know how to sell key man insurance effectively? Sell the need! Sell the need! Sell the need!

It's been proven in study after study. When you focus on selling the need, you necessarily focus the prospect's attention on a problem, which motivates them to avoid the pain. So when you sell the need, your prospects will buy the coverage.

For example, here's how to sell the need for key man insurance:

Let's say that you're talking with Mark, a small business owner. Here's what you would say, “Mark, did you know that more than 2 million employees between the ages of 35 and 55 die every year? And did you know that more than 2 million others are permanently disabled every year? Traffic accidents, cancer, stroke, heart disease — it happens every day Mark. But when one of these 2 million is a key person in your business — one of the people who gives your business its competitive advantage in the market — the effects on your business can be costly, as well as disruptive.

Because when your business loses one of its best people, you also lose sales, lose revenue and lose customers to your competitors. Or you lose the ability to produce or deliver efficiently.

It might be your best programmer, your top sales person or the project manager everyone relies on. And losing them can affect your company's profitability, Mark. It can affect your customer relationships, your market position, your employee morale — even your credit lines and your investor confidence.

But these people cannot simply be replaced, like other employees Mark. Because these people have unique talents, special proficiencies, technical knowledge, influential connections and years of experience that makes them valuable to your business. So who are these key people in your company Mark? And how difficult would it be to replace one of them? How long would it take, and what effect would it have on your business?

When you sell your prospects or clients on the need and keep them focused on their risk of loss, the product sale becomes a matter of choosing the best solution, not deciding on whether or not to buy.