How to sell life insurance in the current recession
By Lew Nason
Insurance Pro Shop
A year ago, in anticipation of the current meltdown of the economy, I wrote a series of articles about how you can make your life insurance sales career recession-proof. In view of what's happening today, I think many of the ideas, tips and strategies in those articles need repeating today.
Unfortunately, most agents are looking for a quick fix, something new and exciting that requires very little time or effort on their part. If that's what you're looking for, don't bother reading any further.
What most agents fail to realize is that in a good economy, almost anything you do will produce some results, but in a bad economy you must get back to marketing and sales basics and focus on helping people.
We currently receive hundreds of phone calls and e-mails every week from insurance agents, financial advisors and planners who are having a very tough time selling life insurance -- as well as their other insurance products, investments and services -- during this recession, because most people are not willing to add to their monthly expenses. In fact, most people are looking for places to cut their expenses. They are worried about what might happen if prices continue to rise, mortgage interest rates climb, real estate values drop, the stock market continues to collapse and they lose their job.
However, if you think about it, peoples' overall financial concerns aren't much different than at any other time in their lives. They are still concerned with meeting their financial obligations each month, making their mortgage payment, saving for their children's education and saving for retirement. The only real difference is that during a recession like this one, people are forced to focus their attention and deal with their financial problems right now. They are looking for real help and immediate solutions to their financial problems. They want to reduce or eliminate their debt, cut unnecessary expenses, reduce income taxes, revise their investment strategies and more. And the great part for you is they are much more willing to sit down and talk with a financial advisor -- if that advisor is focused on helping them solve their immediate financial problems.
Many insurance agents who are using the life insurance sales systems are having significant problems attracting prospects, setting appointments and closing sales in this declining economy.
While there are many good sales ideas for a good economy, most have two basic flaws in a struggling economy:
1. They are selling a product or service that requires people to spend additional money.
2. They are weak in delivering a unique marketing message that attracts the right prospects.
The "Found Money Management" marketing message is, "We help people to get what they need and want without them taking any additional money out of their pockets. It's about helping people to reposition wisely their spending and assets to eliminate debts, improve their cash flow and reduce income taxes without changing their current lifestyle. The main theme is helping people to live debt-free and truly wealthy.
Here are just a few ideas we use to help prospects reduce or eliminate debt, reduce income taxes, improve their cash flow and get all the life insurance they need and want without them taking any additional money out of their pockets or changing their current lifestyle.
- Can you help them to reduce or eliminate their debts and improve their cash flow?
- 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 accumulation in their life insurance policy they could use to pay off their high-interest credit cards or a car loan? Aren't they better off borrowing from themselves and paying themselves back instead of paying someone else the interest?
- Do they have untapped equity in their home that they can use to reduce or eliminate their debts? Could they take out an equity line of credit? Yes, many people still have equity in their homes, and yes, you can still get equity loans.
- Can they refinance their mortgage to take out some equity and lower monthly payment to improve their cash flow? Mortgage interest is tax deductible. So, they save on income taxes while reducing their debt and improving their cash flow.
If you are thinking this requires a lot of work and education, you're right; however, what other viable options do you have during this recession? Using these strategies you can make your life insurance sales career recession-proof.
*To discover more about what Lew Nason has learned in his 30 years' experience and his "Found Money Management" program, please use the forum below and include FMM in the subject line.
© 2009 Lew Nason, RFC, LUTC Graduate - All rights reserved
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