Four things top producers do to sell cash value life insuranceArticle added by Lew Nason on May 10, 2013
Lew Nason

Lew Nason

Dallas, GA

Joined: October 13, 2006

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Insurance Pro Shop

Top producers who use these techniques are able to consistently attract more people, set more appointments, get more referrals and close 9 out of 10 sales calls.

We get hundreds of calls each day from agents who are searching for tips on how to sell life insurance, especially cash value life insurance. They want to know how they can convince people to buy cash value life insurance with all the negative articles and bad publicity about it.

Even when we lay it all out for them, most agents don’t want to hear it. They want to believe there’s a quicker solution that doesn’t involve taking their time to read and study. They want a simple idea that will magically attract hundreds of people to them that already want, can afford and can medically qualify for cash value life insurance. These are the same people that will spend thousands of dollars each year on Internet leads or on a sales system that makes outrageous claims, like promising overnight success while "selling from home in your underwear!" I hope you are not one of those people.

I guess what I’m asking you is, are you ready to learn the real insider secrets to selling cash value life insurance? Then let's begin.

First, learn what’s not working and why. To learn how to be successful selling cash value insurance, you first need to understand what most agents are doing and why it isn’t working.

The vast majority of agents out there are buying Internet leads, mortgage leads, sending out sales letters, cold calling, etc., to identify those people who need life insurance. Once these agents finally set an appointment with a prospect who agrees they need the life insurance protection for their family, business, etc., they’ll jump right in and try to convince the prospect why they should consider buying cash value life insurance.
  • They’ll tell the prospect about how much money they’ll save by purchasing cash value life insurance while they are young and the premiums are low.
  • They talk about the merits of owning instead of renting their life insurance.
  • They’ll explain how they’ll get all of their premiums back, with interest, so they’ll be able to use that money to fund a college education for their children, pay off their home 10 years early or have tax-free money in retirement.
  • They’ll try to convince the prospect that they’ll need the insurance in their retirement years and that term insurance won’t be there when they need it most.
All of these things they are telling their prospects (and more) are very true and logical reasons for them to own cash value life insurance. However, in the majority of the cases, the agent is indeed lucky if they are able to walk out with a term insurance sale, let alone a sale for cash value life insurance. Why?
Then, there are agents that will spend $5,000 or much more on an advanced cash value life insurance selling system. Their objective is to find and attract people who want to hear more about these exciting new concepts. So they send out their books and free reports. They’ll run ads in the newspaper offering a free dinner seminar. Once they set an appointment, they’ll explain how great the concept is and how much better off the prospect will be financially. The concepts they are presenting are terrific, and they work. And yet, most agents are lucky if they are closing 10 percent to 20 percent of the people they are meeting with. Why?

The reason both these groups of agents are struggling with selling cash value life insurance is because they are telling the prospect how great the product is and explaining logically why they should buy it. What the top producers know that you don’t is that telling is not selling.

1. Top producers don't just tell, they sell. If you tell the prospect, they may or may not believe you. Remember, in their eyes you are just another salesperson trying to make a sale. If you want to sell to most of the people you meet with, then you have to get your prospects to tell themselves why it’s important, why this works and why they should take action now. And that’s about asking questions, like:
  • How much life insurance do you want?
  • How did you come up with that amount?
  • If you purchase term insurance now, how old will you be when it ends?
  • How long do you want to have your life insurance?
2. Top producers know that people buy based on emotion, and then justify their decision based on logic. If you want people to buy from you, then you must get them emotionally involved. People buy for many reasons, but they all boil down to avoiding pain or gaining pleasure, which are emotions. To get people emotionally involved, you much ask the who, what, where, when, how and why questions so they will see and understand the problems they are facing. The more emotionally involved they are in solving their problems and eliminating their pain, the more likely they are to take action. You must ask questions like:
  • What would happen if you or your wife weren’t here tomorrow?
  • How much income would your family lose?
  • Could your family keep your home?
  • How much income would you like to have at retirement?
  • What would you like to do?
  • How many years do you think you’ll be retired?
  • Do you think Social Security will be there when you retire?
  • How much have you been able to save so far?
  • How do you feel about that?
3. Top producers help people find the money. Would you agree that none of us has any extra money? We all are spending everything we earn. So, no matter how good your program or idea is, if your prospect has to sacrifice something in their life, then they are probably not going to do it. However, there are very few people who are not wasting money in some areas of their lives. Your job, if you want to make a sale, is to help them find that money, by helping them to establish their financial priorities.
  • Is what you are spending that money on more important than protecting your family, saving for your child’s education, or saving for your retirement?
4. Top producers keep the closing presentation simple and logical. Remember, people buy based on emotion, and then they justify their decision based on logic. If you confuse the prospect at all, give them too much technical information, try to solve all of their problems at once, or use a 25- to 50-page report, then you’ll have trouble closing the sale. It makes the solution too complicated and too confusing. People want to know what the bottom line is. You’ll want to use a two-page summary to highlight what you are recommending, compared to what they’ve been doing.

Every top producer knows that selling cash value life insurance isn’t about you, your credentials, your products or even the amount of money the client will ultimately have. It’s about helping people to see and truly understand their financial problems. It’s helping them to avoid pain. It’s getting them emotionally involved in the sales process and answering their biggest question: “What’s in it for me and my family?”

Top producers who use these techniques are able to consistently attract more people, set more appointments, get more referrals, close 9 out of 10 sales calls and earn $250,000, $500,000 and more per year selling cash value life insurance, in spite of this struggling economy and bad publicity about cash value life insurance.
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