How do some of you other folks handle a life insurance fact finding session? If you have someone that wants to come in for a life insurance quote, what is your process?
I'm not sure what you mean - is the client coming in for a specific amount or are you giving financial advice by determining how much they should be insured for?
Who needs money? (usually family in the personal market)
Would you like you family to keep the same standard of living if you were gone?
How much would they need to accomplish that? (don't be afraid to go down to a monthly number)
Help them calculate the amount needed.
How much coverage do you have currently? Let's see what that would provide them currently? (it helps to have them write down the numbers as you help calculate them)
Is it important to you to close the gap?
If yes, you have the sale. You just need to determine the right type of coverage.
I'm glad this came up, I hope we can get plenty of informative comments here.
Americans are underinsured. Many widows are going to be surprised on that sad day when they pull out the life policies. We simply must do all we can to make certain that our clients have adequate amounts of coverage. Some people use only a yellow pad while others use a computerized needs analysis, use whatever it takes, but get them covered for the right amount.
It is a high honor to be called to a greiving family's house to explain the claims process and to show them what they'll receive. They will never forget that day and they'll never forget the agent's name that made it all happen. And, they'll NEVER say it's too much, but they may think is it enough.
Had lunch with a guy today and he asked how much coverage does he need. I asked him how much investment income he earned the previous year. He said, none. How much income would your family have if you died? How much would you want your family to have? The guy bought a million. two on him, and 750,000 on the wife.
Ps, I find it better to deal with what they have to budget that they feel comfortable with as a starting point and arranging coverage around that if it is enough.
M & M, would you suggest using a starter's pistol or blank ammo in a real pistol to help dramatize the situation?
Have some fun, show a video of a beheading and say, "You just been capture by some radical Muslims and your head is now coming off" What do you want to happen now?
In all seriousness, you ought NOT to include any group life they have through work. Most people overinsure themselves through their group plan and underinsure their personal policies. With job changes every 5-7 years, plus the continued difficulty of purchasing as we all age, it's best to get top coverage when they're young, and split the policies between term and permanent.
It's always a battle between needs and their budget. I start with asking what concern it was that casued them to contact me. Then probe with a series of open ended questions that get them talking. You will quickly develop a picture of their situation. Calculators are nice, but it may not address their true concern.
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Ed Gentry
Insurance Marketing Systems ed@ndinsmail.com
866-232-3370 www.AgentWorkFromHome.com
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It's always a battle between needs and their budget. I start with asking what concern it was that casued them to contact me. Then probe with a series of open ended questions that get them talking. You will quickly develop a picture of their situation. Calculators are nice, but it may not address their true concern.
Very nice stuff. I like what I read from all of you.
Do you have samples of the opened ended questions you use?
I use to use the old LIFE acronym (Loans, Income, Final expenses, Education) but it became to difficult to get it done. I like what Delta and bluemarlin do now.
I usually go through an income replacement calculation using my financial calculator. I show them what it would take to replace the income until retirement age. I also use Financial Profiles for multifaceted plans involving retirement and education funding.
What if it is for estate preservation? since we dont know the future of estate taxes is there a percentage that is standard in the industry? How (if) would you split that up between term and perm?
Fact finding session
Linear Mode
