Selling to those with group life

[selfgen]

Is it a good idea to prospect to people that tell me they have life insurance through their employer? Wouldn’t it be advisable that they have something they purchase on their own? What if they change jobs? What if they become self-employed, as most people aspire to do at some point?
Aren’t they’re good selling points to bring up to someone who only has something through theyre job, whereby they likely don’t know what they have exactly, what the benefits are, etc?
Should I pursue these people? How do you respond to these rebuttals to your sales pitch?

 

[adjusterjack]

Should I pursue these people?

Up to you.

How do you respond to these rebuttals to your sales pitch?

See your first paragraph. Most of it is in there. You can also point out that, by the time they lose the group insurance for whatever reason, they may be uninsurable due to age or medical issues and the cost of replacing the insurance would be much higher.

Stick around. The other participants on this site will probably have some tips for you.

 

[DHK]

Aren’t they’re good selling points to bring up to someone who only has something through theyre job, whereby they likely don’t know what they have exactly, what the benefits are, etc?
Should I pursue these people? How do you respond to these rebuttals to your sales pitch?

"That's great! How much do you have?"

"And how long would that last your family if something were to happen to you?"

"Then what would they do?"

"Is that what you want to have happen?"

 

[scagnt83]

Instead of fighting against the work policy, talk about "layering" a personal policy on top of it. Bottom line, 99% of group life policies do not cover the average workers life insurance needs. It might cover $100k-$200k max on a true group policy. A supplemental policy might cover another $100k. Most workers with a family need $500k-$1m.

Dont fight against what they have. Fight against how much they have. There is your sale.

But all the things you mentioned are good rebuttals. Mainly, its not portable and there is no guarantee their health will be in a place to be approved in the future. There is no guarantee the next employer will have group life, or supplemental life. And no guarantee this employer, or the next, will stay in business.

Insurance is for the "what ifs", not "what is".

 

[Allen Trent]

Group should be considered extra, not something that can be relied upon. I have collected Group death claim denials over the years because most people that die while still in working years die too slow & are no longer an employee. IE: 2 year battle with cancer. Most of these individuals go on disability & are no longer an employee & their benefits cease, including group life. if not portable to an individual plan, it is gone. Those types of group coverage can only be relied upon for a sudden death, not a sustained battle that lasts until they are no longer an employee. Attached is one such denial that was actually because the group decided to change carriers & left the person ineligible to be part of the group as they were already sick & off work. newspaper article too. People need to control what they want guaranteed for their family, not rely on crossing their fingers & hoping they keep the same employer or next employer offers group life or current employer keeps the plan or that they die from a sudden cause of death

 

[bill3173]

Group should be considered extra, not something that can be relied upon.View attachment 7236
View attachment 7237

Very true, and it is much better if the spouse is around when you're interviewing the client. Sometimes people will get mad, if they get a terminal diagnosis when they're young, and do things, without the spouses knowledge, that will affect the living spouse.

 

[selfgen]

Thanks for all this information. This will help me tremendously.

 

[InsuranceMonkey]

I would offer, jobs come and go. Group coverage comes and goes with those jobs. It's nice to have a certain amount of coverage that is stable and completely in your control.

 

[pfg1]

As mentioned, the group is extra. I always insure them with their own policy outside of group, with a company with solid convertibility. Lock in insurability on a personal level.

 

[walthamny]

Technically if you receive a pink slip and you have an car accident on the way back home, you will likely no longer be covered by the group life policy. When employment ends so does the coverage. There was a court case when a business changed group life policies.SO the old one expired on friday and new group plan started Monday morning. They emailed the employees. Unfortunately, the employee who died over the weekend could not collect anything. Employer can do pretty much whatever they want with a group life plan.