Clients Pulling Out There Calculators

[SomeDude99]

Hi,

Whenever I go to sell a FE policy the client takes the premium and calculates how long it will take paid premiums to match the face amount. They then realize that if they live any longer they will be paying more into the policy than they would be receiving out.

This has been my biggest challenge with selling FE. The clients response after figuring out the math is oh im gonna live longer than that, this is not a good deal, etc. It just becomes a very hard sale, and never turns into one for me. How do you all deal with this? Helpful advice appreciated.

 

[Newby]

Hi,

Whenever I go to sell a FE policy the client takes the premium and calculates how long it will take paid premiums to match the face amount. They then realize that if they live any longer they will be paying more into the policy than they would be receiving out.

This has been my biggest challenge with selling FE. The clients response after figuring out the math is oh im gonna live longer than that, this is not a good deal, etc. It just becomes a very hard sale, and never turns into one for me. How do you all deal with this? Helpful advice appreciated.

Your income filter may be set too high. Most FE people actually don't ever think they will live long enough for that.

But when they do, just explain that it's the cost of insurance. If they paid for a term life policy and paid the premiums for 20 years and outlived it, they don't have ANY death benefit let alone get their premiums back. Insurance costs money. It's not free.

With FE if they have a $10,000 policy and live long enough to pay $11,000 in premiums they only had a $1,000 cost to it. That's cheap! For that they had an immediate death benefit of $10,000. So they didn't die early enough to make a profit. That's good, not bad.

 

[Bcrane0305]

Hi,

Whenever I go to sell a FE policy the client takes the premium and calculates how long it will take paid premiums to match the face amount. They then realize that if they live any longer they will be paying more into the policy than they would be receiving out.

This has been my biggest challenge with selling FE. The clients response after figuring out the math is oh im gonna live longer than that, this is not a good deal, etc. It just becomes a very hard sale, and never turns into one for me. How do you all deal with this? Helpful advice appreciated.

Lol. I've had that happen like once. The man or woman is likely looking for an out but many elite agents would find another product that would work better from them.

 

[SPUR CITY]

Hi, Whenever I go to sell a FE policy the client takes the premium and calculates how long it will take paid premiums to match the face amount. They then realize that if they live any longer they will be paying more into the policy than they would be receiving out. This has been my biggest challenge with selling FE. The clients response after figuring out the math is oh im gonna live longer than that, this is not a good deal, etc. It just becomes a very hard sale, and never turns into one for me. How do you all deal with this? Helpful advice appreciated.

Ask them how much they are going to get back on their home insurance in 10 years.


You could also show em a 10 yr plan as an alternative.


If they keep coming back with rebuttals I will just fire them on the spot & walk.

 

[Newby]

Ask them how much they are going to get back on their home insurance in 10 years.


You could also show em a 10 yr plan as an alternative.


If they keep coming back with rebuttals I will just fire them on the spot & walk.

When you have this kind of an objection the 10-pay just makes the point where they pay more than the face amount happen sooner. That works against us.

In pre-need sales where all policies are 10-pay or less, this objection is very common. Because there is a definite length of time they pay the premium so most people with any sense will calculate the total of payments.

One of the most attractive things about FE compared to preneed is the payments are spread over your lifetime which makes them lower PLUS people don't know how long they will live so they don't know how many payments they will make. Since it's more abstract, they usually don't pull the calculator out.

 

[John Galt]

I just normally tell them look Martha and Fred.....see this stick figure? and I draw a man on paper holding a bag...."he has your $10,000 in that bag....its yours tomorrow if you die and it only cost $60 for one payment". If they give me the bs about living longer than yadda yadda yadda I just say "well, he still is there, holding that bag, what if you die between now and 20 years?" "None of us can predict the future" After that if they wanna argue i give them the finger and roll out hard to the next appt.

 

[Baseball7]

I'll hit on 10-Pay
Immediate Benefits
Last, explain that I've utilized the 'paid off' option in your program many times for folks loyal to there plan to get them more coverage or lower there premium.

 

[Speck]

I actually had one ask me just that scenario a few days ago. Said he would end up putting more money than the policy would pay out. I figured it out for him and told him he would have to live longer than 8 years for that to happen. He said he would probably just go to the funeral home and do the $2,600 cremation package they offered him. I then showed him a couple of single premium policies offered by Settlers where he would only pay $1,800 or so for a $2,600 benefit. His wife was even better, only needing to pay $1,300 or so for a $2,600 benefit. Of course he wanted to think about it so I left him my card and headed to the next appointment. Don't let these senior financial geniuses who've waited until the grim reaper is on the doorstep to take care of their business shame you. By offering them a single pay premium, they're guaranteeing themselves to never pay as much as the payout.

 

[theinsuranceman]

Hi,

Whenever I go to sell a FE policy the client takes the premium and calculates how long it will take paid premiums to match the face amount. They then realize that if they live any longer they will be paying more into the policy than they would be receiving out.

This has been my biggest challenge with selling FE. The clients response after figuring out the math is oh im gonna live longer than that, this is not a good deal, etc. It just becomes a very hard sale, and never turns into one for me. How do you all deal with this? Helpful advice appreciated.

That's when I say "I understand Mr. Jones, why don't you do like everyone else does?" He says "what's that?"

I say "we have this new plan, it's called a 20 year term ROP and it works like this: if you die anytime during the next 20 years this policy pays that big check to your family. And, if you're still alive at the end of 20 years the company gives you all the money back that you paid in during that 20 years in one big fat check. That way you can't lose. By the way, is this the address you want this plan mailed to?"

If he still balks I walk. His excuse of paying to much $$$ into the policy was just a BS excuse.

If anyone needs this product in your "bag" call me 252-292-3350.
Greg

 

[Newby]

That's when I say "I understand Mr. Jones, why don't you do like everyone else does?" He says "what's that?" I say "we have this new plan, it's called a 20 year term ROP and it works like this: if you die anytime during the next 20 years this policy pays that big check to your family. And, if you're still alive at the end of 20 years the company gives you all the money back that you paid in during that 20 years in one big fat check. That way you can't lose. By the way, is this the address you want this plan mailed to?" If he still balks I walk. His excuse of paying to much $$$ into the policy was just a BS excuse. If anyone needs this product in your "bag" call me 252-292-3350. Greg

Smart move. But aren't the ages and underwriting way more restrictive than FE?