[COLOR=black]I want to talk about a big untapped market, the uninsurable market. Or at least that is what they are led to believe, because they can not get coverage. Tons of clients think they can not get any type of coverage because of having a poor or a pre-existing health conditions or for other reasons. [/COLOR]
[COLOR=black]Most agents run away from unhealthy clients and are taught to only focus on the clients that have no health conditions. I want to help to show you how to not only run away from these types of clients, but how to prospect and help them.[/COLOR]
[COLOR=black]I’m going to talk about the clients that you would think are uninsurable. Clients that have had a heart attack, stroke, cancer, d.u.i., or obese clients, just to name a few. You would be right to think that they can’t get normal insurance. But many of them do qualify for some type of coverage.[/COLOR]
[COLOR=black]Graded benefit products take about 95% of the clients out there. There is hope for many clients that feel like they can’t get any type of coverage. Most graded benefit products are limited in benefit in the first couple of years. After the graded period has past, it has full benefits. If the client dies in the graded period, the client usually gets their money back, plus interest (12% to 24%) or a limit amount of the death coverage. This all depends on the company offering the product. I work with a couple of companies that offer this type of coverage. I believe that this product can be used to help certain clients. [/COLOR]
[COLOR=black]I want to tell you one of my boring stories. I had a friend named David Littleton that found a great deal on a house on 7 acres and had a pond on it for about $62,000. This was a great deal. He went to several banks trying to get a loan, but was turned down by all of them. He had poor credit, due to some credit cards that he never paid back when he was younger. After being told by many loan companies that he would not get the loan, his heart was broken. He found one loan company I think it was Greentree Financial that offered to give him the loan. They wanted him to pay a very high amount of interest. It was over 3 times the interest that I was paying for my home. I thought they were ripping him off with such a high interest rate. But the fact was that he had poor credit and could not get a loan anywhere else. Let me just save some time and tell you that he jumped on the offer. He didn’t give it even one day to think about it. After being told many times that you can’t have something that you need, and then you are allowed to have it, you will jump on it. No matter what the price.[/COLOR]
[COLOR=black]The point of the story is to show you how the clients feel and think. They know that they have to pay a higher rate if they can even get the coverage to start with. Most clients are thrilled to death to get the coverage they didn’t think they could ever get. Most of them have already talked to a couple of agents that have told them that there was nothing they could do to help them.[/COLOR]
[COLOR=black]Graded Benefit polices are great for these types of clients. Let me give you an example. Let’s say a client that had brain cancer just one year ago is worried about protecting his family from the cost of a funeral and wants to buy life insurance. He gets out the phone book and calls a couple of agents and most of them laugh at him or tell him that he can’t get any coverage. He gives up on getting any kind of coverage until he runs into you. You tell him that you can help get some protection. You show him a graded benefit plan. In this example we will use United Home Life’s product. In the first year it offers return of premium and 12% interest. Second year it offers R.O.P. plus 24% interest. After the second year, it offers full benefit. This is not a bad deal. It is better then if he put the money in the bank and got a lower amount of interest. It would be hard to find anywhere willing to give him 12 to 24 percent interest on his money. He understands that he is going to pay a higher premium then someone that is in great health. Most companies Graded Benefit products are non medical and jet issued. Here is an example client brochure to give you an idea on this product. [COLOR=#ff4400]http://rosenthalfinancialservices.com/_downloadz/tp3agentguide.pdf[/COLOR][/COLOR]
Part two to follow I hope
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[COLOR=black]Okay, I told you that I would help you find people to sell this product to. But I first have to tell you one more boring story. In 2000, I went to the doctor after having bad chest pains. To make a long story short, I found out that I had something wrong with my heart and they thought that there was a good chance that I would not live past age 40. Not a lot was known about this rare condition. My world stopped that day. Everything in my life was going great into this point. I had it all and now this happens. I had a genetic heart disorder. My doctor recommends that I join a support group. I find an association on google of other people that have the same heart condition. They show me where there are local support groups in my area. The support group and association really helped me deal with this issue. A lot of people like me join support groups and associations after getting bad news. Like after having a heart attack, stoke, cancer or other life changing events. In the meetings we mainly talked about our families, finding some answers to our questions and what we are suppose to do now. Many of them did not have any type of life insurance. Now, that they wanted to buy some coverage it was too late. After about one year, I found a product that Americo Life had, that was through College Life that had no health questions on it and took everyone. I started showing this product to everyone and a lot of them jumped on it. So I didn’t just stop at one support group, I went and visited some other support groups. I was able to help many clients. I was lucky that I already had life insurance on myself; because that was the first thing I did in this business. I started thinking about how many other support groups there were out there that I could help. You would be shocked at how many you can quickly find. [/COLOR]
[COLOR=black]I want you to look for the clients that have been told that they can not get any kind of coverage. You can do this in two different ways. You can go fishing with a fishing pole or a net. You can try and sell one person at a time, or go after the groups of them. Look for the support groups and the associations. Image an ad that say “have you been declined for life insurance? I can insure anybody”. [/COLOR]
[COLOR=black]Let me talk about why this should be one of the niche markets that you use. The clients just about never lapse one of these polices. They are so glad that they have found coverage that they never let it go. The premiums are generally slightly higher then most types of insurance, but the clients understand the higher premiums. There is more good reason to sell these types of product then I could tell you in an hour.[/COLOR]
[COLOR=black]I suggest that you start thinking about tapping into this untapped market. Other agent’s declines will now be your future clients.[/COLOR]
[COLOR=black]In case any of you care, I’m doing great with my heart condition. In 2004, I believe I was cured with my aorta problems by GOD. I still take a daily beta blocker. But let’s not start fighting over this and let’s stick to the subject of this idea.[/COLOR]
Some time ago there was a discussion about niche marketing and how successful some agents can become. I met a lady for Metlife who does estate planning/life insurance for families with autistic children.
I'd get rid of any last name and just say "David." I'm sure there's a David with that last name out there somewhere and the story doesn't need anyone's last name.
I asked David if I could tell his story. He said I could tell people. David is actually not his real first name. But David is one of my best friends and he knows I tell everyone about what he did. I still pick on him about it. Since then, he has switched his loan to another company with a lower interest rate.
I have actually sold some of these limited benefits plans and the people that get them are usually glad to have anything. Most of them have been kicked out of my home state of WA though.
A big untapped market to prospect
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