The second secret to closing nine out of 10 sales
By Lew Nason
Insurance Pro Shop
Once you have your clients' full attention and they tell you they want to solve their financial problems, their next next issue becomes finding the money to get what they need and truly want.
In my last article, I discussed the first secret to closing 9 out of 10 sales: helping your prospects identify and discuss their problems.
The unfortunate truth is that most of our prospects don’t fully understand the depth of the problems they face, and all of the consequences of not solving those problems right now. Until our prospects fully understand their problems and the consequences, they won't make solving those problems a high priority. So, it's up to you to learn how to ask better questions, to get them to talk about their problems and get them to tell you they want to solve those financial problems.
Now, once you have their full attention and they tell you they want to solve their financial problems, their next next issue becomes finding the money to get what they need and truly want.
What’s the most common objection you get during most sales calls for cash value life insurance, disability insurance, LTC insurance, etc?
“We can’t afford it. We just don’t have the money right now.”
Is this dreaded objection stopping you from closing the sales you want and need?
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? If they had $10,000 sitting in their savings, couldn’t they afford to go to a higher deductible on their insurance policies? What’s the best and fastest way to get the $10,000 into their savings?
- 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, DI 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? Be very careful about replacing policies. 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 or SEP? 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?
Can you help them to reduce or eliminate their debt?
- 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? (Note: They must pay themselves back with interest. In some cases, you 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.
By combining these techniques with better questioning, you'll soon be setting more appointments and be on your way to closing 9 out of 10 sales. And, you’ll soon be closing significantly larger sales.
Plus, you'll help your prospect to optimize their savings. You'll put them on the road leading to true financial security. You'll make yourself even more valuable to them.
You'll become their financial advisor, instead of just another salesperson.
By the way, have you looked at your own financial situation? Can you use any of these strategies to make it better?