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The client has a fantastic massmutual whole life paid till 100 contract (client has had for 7 years). Premium after dividend offset is about 2400 a year. I do not want to replace, but this is the third year I have had to "re-sell" him on the contract and I am afraid if I don't replace it with in his terms "a non cash value policy with lower premium" he will eventually cancel it or replace it without me.
He is very flamboyant and not afraid of contacting insurance agents right out of the phone book. He told me the other day that he was offered a nice policy for $75 a month (we all know that is a crock and I could blow it up if I could see the quote, but I am afraid someday he won't give me that opportunity. I am looking to give him what he wants).
I am thinking about three different options:
Replace with GUL and 1035....Looked at this last year, premium around 1500 a year.
Take the paid up option because the client acts like he does not need anymore insurance (although the family would disagree)
Replace with State Life if we can get some decent LTC benefits (the family is interested in that and the client may see the value there instead of the Death Ben)
JD is right and wrong at the same time. He's right that if you don't offer him what he wants, someone else will.
The question I have for you is why are you 'afraid'? This guy sounds like a pain in the neck and doesn't value you or your advice. That, or you haven't clearly articulated the benefits of having the policy other than from a cost perspective.
In my opinion, you need to reaffirm the value of what he has one last time. If he wants to dump it - then you dump him. Don't have HIM direct the relationship and your "advice". You're the advisor, not him. If he can't see how what he has is good for him, let him go (and work on your own skills). You can't afford to ever be 'afraid' of what a policyholder wants to do.
There is a difference between a policyholder and a client. A person might initially be a client who values your advice, but once they reject your advice... they become a policyholder and you need to categorize them appropriately - no matter how large the policy is. As soon as the 'client' is directing the relationship and terms, they are no longer a 'client'. They fire themselves from your clientele and until the policy is terminated, just treat them like a policyholder instead of a client.
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I would HIGHLY recommend that you watch Ben Feldman in the Anatomy of a Sale with his client. (I think this is the client he insured for $50 million of whole life.) You will notice that he uses whole life to solve problems, and he uses particular visual illustrations to make it 'brain dead obvious' that his solution is the best solution.
www.youtube.com/watch?v=BDYpeDj07E4
I simply disagree with trying to sell the guy what he says he wants when he clearly isn't valuing his original advice & recommendation. That's all.
This debate between DHK and JDEasy is quite interiguing .. I"ve wrestled with this on how I should position myself..
It seems like JDEasy rather position himself as just an Insurance agent who brokers deal between customer and carrier.. The customer comes to him knowing what he wants and he matches him up with the best product for what he wants ..
DHK plays the role of the advisor whose value is the advice and he accumulates client because they have developed a trust in him and his advice.. therefore the way DHK and JDEasy approaches your situation is quite different.. but they are BOTH right ... ( .and that's not a copout stance)
..that is as long as JD presents himself as an insurance agent and DHK presents himself as an advisor.