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ROP Policy
- Thread starter agentjhc
- Start date
- 1,405
I NEVER sold premium. I sold coverage. Aren't you concerned that one of these clients is going to die, and their families are going to end up in financial trouble?
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I lead with the problem (death benefit) Then I ask about a solution budget goal. But I do not want them to give me a hard number because then it is more set in their mind. I want more of a range.
However, I am more of a Problem v Solution person. Probably 60% Problem / 40% Solution for most families. In larger cases it may be more <70% / >30% Because the people with larger problems tend to understand the solution cost more.
However, I am more of a Problem v Solution person. Probably 60% Problem / 40% Solution for most families. In larger cases it may be more <70% / >30% Because the people with larger problems tend to understand the solution cost more.
I knew I should have saved those...
Yr 1 is going to be practically same as the guaranteed DB. The Yr 10 non-guaranteed will be much closer to Yr 1 one than Yr 20...
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And this is why a combination of term and permanent (be it CV UL/WL or GUL) is often necessary...get the death benefit covered first, then start looking at additional advantages.
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Nope. That was never a concern. All of my clients either ended up with sufficient coverage, or whatever coverage they could afford - which is inevitably better than no coverage at all. I absolutely refuse to leave the home unless they sign on the dotted line, or call the cops on me. I'd rather sell a guy who has no life insurance a $100,000 policy that he can afford - even if it is insufficient - than sell him a larger policy that he'll just end up lapsing.
That being said, my average AP selling Term was $1600 and I don't believe I've ever sold a term policy death benefit under $200,000.
But that was when I sold Term. I'm starting in FE now so Im sure it will be a different animal.
- 1,405
I sold income replacement. People understand the need for an income, and all you had to do was show what it costs to provide a replacement income for a specified period of time. I routinely stepped into situations where people had 20 or 30% of the coverage they actually needed, and after showing them what they really needed, sold the additional and wiped out what they had by tacking it on top.
"Better than nothing" sales were always a perfect and easy target to take over with real insurance.
"Better than nothing" sales were always a perfect and easy target to take over with real insurance.
You wouldn't have been able to replace any of mine. But kudos to you, and good for them if you were able to help them.
- 1,405
It is my sincere hope that any client you undersold on coverage, is taken by an agent who does sell coverage. No consumer should be left under insured because an agent was more interested in selling a certain product, versus the coverage the client's beneficiary will need if they die.
Robert,
I've never undersold a client. I appreciate what you're saying though, but I think you have the wrong idea about my technique. Have you ever failed to sell an insurance policy on an appointment which the client had no insurance? I'm sure it's happened to us all. It is in those rare circumstances that I eluded to that I resorted to "something is better than nothing" technique. Any persistency issues I've had have been due to my overselling clients. I can probably count on 3 fingers how often a policy of mine was replaced for more coverage.
Again, good for you if you've been able to help others. Congrats. But you would have a hard time replacing any of my business for more coverage. I'm quite confident in that.
[edit for clarification] When I say I sell by premium what I mean is that I use it as a commitment technique. I don't care what number the client gives me. I don't quote any death benefits based upon that number. I think this is what you are assuming. What's important is that he gave me a number and now his "I cant afford it" objection is gone forever. I still conduct needs analysis and typically my first quote is 4-5x whatever number they gave me because I always quote by needs, then plus some. When I say that "something is better than nothing", I mean that there have been a few times (a handful) where a belligerent customer who doesn't want insurance and doesn't want to spend any money on insurance is trying to get away with not purchasing anything, and I've resorted to selling "something" better than nothing. Because the truth is, if I walk out the door with a $50k policy @ 200AP its still better than me leaving without 1) a sale, and 2) the client insured with minimal coverage for his family.
Anyway its a technique that works well for my style and as I said, I rarely...and I mean rarely...ever get policies replaced. And Im not aware of any that were replaced for more coverage.
I've never undersold a client. I appreciate what you're saying though, but I think you have the wrong idea about my technique. Have you ever failed to sell an insurance policy on an appointment which the client had no insurance? I'm sure it's happened to us all. It is in those rare circumstances that I eluded to that I resorted to "something is better than nothing" technique. Any persistency issues I've had have been due to my overselling clients. I can probably count on 3 fingers how often a policy of mine was replaced for more coverage.
Again, good for you if you've been able to help others. Congrats. But you would have a hard time replacing any of my business for more coverage. I'm quite confident in that.
[edit for clarification] When I say I sell by premium what I mean is that I use it as a commitment technique. I don't care what number the client gives me. I don't quote any death benefits based upon that number. I think this is what you are assuming. What's important is that he gave me a number and now his "I cant afford it" objection is gone forever. I still conduct needs analysis and typically my first quote is 4-5x whatever number they gave me because I always quote by needs, then plus some. When I say that "something is better than nothing", I mean that there have been a few times (a handful) where a belligerent customer who doesn't want insurance and doesn't want to spend any money on insurance is trying to get away with not purchasing anything, and I've resorted to selling "something" better than nothing. Because the truth is, if I walk out the door with a $50k policy @ 200AP its still better than me leaving without 1) a sale, and 2) the client insured with minimal coverage for his family.
Anyway its a technique that works well for my style and as I said, I rarely...and I mean rarely...ever get policies replaced. And Im not aware of any that were replaced for more coverage.
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- 1,405
It happened rarely simply because the income replacement approach to selling life insurance is SOOOOOO compelling.
Question: You have a husband and wife, he makes $70,000 per year, and she makes $30,000 per year. They have two kids, one is 5 and the other is two. How much life insurance would you recommend for each?
Once you give me your answer, I will give you my answer and show you how I would sell that amount and why I would be successful almost all of the time. I will then tell you the one time that it wasn't and what I did.
