2 insider secrets top advisors use to close more cash value life insurance salesArticle added by Lew Nason on April 9, 2013
Lew Nason

Lew Nason

Dallas, GA

Joined: October 13, 2006

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By using these techniques, you can double or triple your cash value life insurance sales in the next 60 days.

What do the top life insurance producers know about selling cash value life insurance that you don’t? The answer below may surprise you.

Secret No. 1: No one likes to be told what to do

One of the main reasons why top advisors are able to close more cash value life insurance sales is that they get their prospects to practically sell themselves.

Consider that most agents and advisors tend to lecture and tell prospects what they should do. So, once the agent or advisor finds (or thinks they’ve found) a problem the prospect has, they’ll immediately try to provide the solution to the prospect’s problem. Doesn’t a salesperson telling a prospect what they should do create an automatic response from that prospect — of immediate resistance?

Think about it. Do you like to be told you have a problem? Do you like to be told what you should do? Don’t you automatically fight the idea? Aren’t you immediately skeptical? Wouldn’t you rather identify your own problems and come up with your own solutions?

For example, when most agents and advisors are talking to a family, they’ll ask, "Do you have life insurance to pay off the mortgage if something were to happen to you?" If the prospect doesn’t have any mortgage life insurance, then the agent or advisor immediately tells the prospect about a great new affordable product that will pay off the mortgage if the prospect dies and will pay off the mortgage early if the prospect lives. The prospect automatically says, “Let me think about it.”

Why? Because no one likes to be told what to do. No one likes to be sold. But people do like to buy, if it’s their idea.

People buy based on emotions and then justify their decision based on logic

The top life insurance producers have learned how to close more and much larger life insurance sales by helping their prospects identify and truly understand their financial problems. Then they help the prospect to come up with their own solutions.

These top producers know that people buy based on emotions and then justify their decisions based on logic. Top producers have learned to ask questions and have a real conversation to help prospects to want to take action to solve their own problems. So, the prospect practically sells themselves.
A simple example

Agent: “If I may ask, do you currently have a mortgage on your home?”

Prospect: “Yes, I do.”

Agent: “And, if I may ask, do you have insurance to pay off your home for your family, if something were to happen to you?”

Prospect: “No, I don’t.”

Agent: “How do you feel about that?”

Prospect: “I never thought about it.”

Agent: “Well, if something were to happen to you, and your family lost your income, what would happen? What would they do?”

Prospect: “I guess they would have to sell the house and move in with our parents.”

Agent: “Is that what you want them to have to do?”

Prospect: “No, but unfortunately I can’t do anything right now. I just can’t afford it.”

Agent: “I understand. But do you feel it’s important to have the home paid off for your family, if you weren’t there tomorrow?”

Prospect: “Yes, I do.”

Agent: “Well, if I could show you how to get the insurance you need to protect your family without taking any additional money out of your pocket and sacrificing your lifestyle, would you like to know how?”

Prospect: “Yes, I would.”

Can you see the difference? We’ve helped the prospect to identify and understand his problem and become emotionally involved. Now that the prospect understands and agrees he wants to solve the problem, we can work with him to come up with his own solutions.

Remember, no one likes to be sold. If you learn to ask questions and have a real conversation, to help the prospects to identify and understand their own problems, and then help them find their own solutions, you’ll close more sales. And, in many cases, it’ll be a much larger sale.
Secret No. 2: Help your prospects to find the money

That brings us to the second reason why top life insurance producers are closing more cash value life insurance sales. They understand that people just don’t have any extra money.

“Well, if I could show you how to get the insurance you need to protect your family without taking any additional money out of your pocket and sacrificing your lifestyle, would you like to know how?”

How much easier would it be to close the sale, if you could show your prospects how to get what they need to protect their family without their spending any additional money and/or changing their current lifestyle?

Think about it. What’s the biggest obstacle to your selling cash value life insurance? Isn’t it the “I just can’t afford the premiums right now” response?

When prospects say they can't afford it, do you now apply pressure to try and persuade them it’s worth the sacrifice? Do you try three or four of the hundreds of closing techniques you’ve learned, until you get three or more nos? Does applying pressure, or using those closing techniques, generally result in you making the sale?

Isn’t our job as salespeople to help people recognize they have a problem and then get them to agree they want to solve the problem? Unfortunately, that’s where most agents and advisers stop. If you want to close more cash value life insurance sales, then you must go a step further and help your prospects to find the money.

In most cases, you can help them find the money by reviewing their current situation (doing a thorough fact-find) and then helping them make some smart money management decisions (reposition their current spending).
Here are just a few ideas on how you can help your prospects:
  • Can they reduce the premiums on their existing insurance policies?
  • Do they have low deductibles on their health, auto or homeowners insurance? Can they increase their deductibles to free up some money?
  • Do they have an opportunity to receive a discount on their auto, homeowners and liability policies by putting them with the same company?
  • Do they qualify for health insurance through their employer at a reduced cost?
  • Do they have a critical illness policy, disability insurance policy or long-term care insurance policy with long-term benefits? Example: Having a "to age 65" benefit period on their DI policy is fine, but if it prevents them from getting the life insurance they need to protect their family, is the long-term benefit on these policies really necessary? What is the higher priority?
  • Do they have expensive, low priority riders on the above policies? Could you free up money by removing these riders?
  • Do they have cash value polices that can be paid up with dividends?
  • Can you recommend a lower priced, quality company for their current insurance? Make sure it's truly in your prospects' best interests.
  • Are they funding a retirement plan?
  • Are they putting money into a Roth IRA? If they need more life insurance to protect their family, couldn't they use a cash value policy for their retirement savings instead of a Roth IRA? Doesn't cash value life insurance build tax-deferred and generate tax-free income just like the Roth IRA?
  • Are they putting more money into a 401(k) than is matched by their company? Or are they are using a traditional IRA, SEP, etc.? Again, if they need more life insurance to protect their family, couldn't they instead use some of the money they are putting away for retirement to fund a cash value policy?
  • Do they have multiple credit cards and charge accounts with large balances and high interest rates? Could they consolidate all that debt onto one credit card with a lower interest rate and reduce their total payments?
  • Do they have cash value in their life insurance policy they could use to pay off their debts or a car loan? Aren't they better off borrowing from themselves and paying themselves back, instead of paying someone else the interest? They can become their own bank as in the infinite banking system. (Note: They must pay themselves back with interest. In some cases they can borrow from a 401(k) to pay off debt and then pay it back over five years.)
  • Do they have untapped equity in their home that they can use to reduce or eliminate their debts? Or could they refinance their mortgage for a lower monthly payment to free up income? Mortgage interest is tax deductible, so they save on income taxes while reducing or eliminating their debt. That’s the idea behind the missed fortune concept.
These are just some of the creative ways you can help your prospect to find the money. By asking questions to get your prospects emotionally involved so they want to take action, and by using these "find the money" techniques, you'll close more — and significantly larger — cash value life insurance sales. By using these techniques you can double or triple your cash value life insurance sales in the next 60 days.

Starting today, help middle income families spend, save, invest, insure and plan wisely for the future to achieve financial independence, so you become the most recognized, trusted, respected and sought after financial professional in your local community.

By the way, have you looked at your own financial situation? Can you use any of these strategies to make your financial situation better?
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