How to Close a Tight Wad?

SuperWoman

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Atlanta
I was soooo close....:no:

Presented a hybrid of term-WL, $300,000. $184 month. He liked the cash-value/ aspect. Wants to leave something for his 21 yr old. And has colitis. Knows the next colitis flare up could decline him. But...."this quarter isn't good, maybe next quarter I'll apply". I know this man well, he makes 6 figures, self-employed and always watching the almighty dollar. For lack of a better term, he is just cheap.

Refuses to turn out exterior light at night - to save a few pennies of power. No smart phone data - ever though he works in IT field. Cursed himself when he bought a $2 movie rental when he later found out he had it on Netflx for free. Takes an act of congress to turn on the heat when I visit his home. I grew up #7/7 kids and we thrifted like crazy so I am a saver and frugal. But never have I seen a person with such a fear-based relationship with money.


I had him all the way to the para-med appointment before he backed out.

Can a person like this ever be closed?
 
I could be wrong, but I think it's more than $$$. Often in folks like that money is an excuse.

Maybe he thinks there is a cheaper alternative.

Maybe you have not earned his trust.

Maybe he doesn't like you.

I usually shudder a bit when an agent want's to know how to "close" someone. IMO the agent doesn't close anyone. The prospect/client closes themself.

Jeffrey Gitomer says "People hate to be sold but they love to buy". You have not given him a reason to buy.

At least not yet.

The old time life agents used to "back the hearse up to the door" to effect a sale. A rumored Prudential close was "Keep this app and think about it. IF YOU WAKE UP tomorrow, give me a call".

Gimmicks like that are usually not successful.

If you want to go back to this person you need to first review all that has happened so far and what he said. When, if ever, did he give a buying signal? Was the solution proposed his idea or yours? Did he understand the term-WL concept.

Did you give him a choice between 2 or 3 options or just present the one and leave it at that.

A small commission sale (term only) is superior to no sale at all.

During my brief period of selling life insurance (I hated it) I presented $500k face and gave him an option of YRT or a UL complete with proposal showing year by year accumulation. He really wanted the UL and the 20 yr YRT projection scared the crap out of him after the 6th year or so.

He asked if he could do a combination of term & UL.

I took an app for $50k of UL and $450k term rider.

Something is better than nothing.
 
Why did he want the insurance for his 21 year old? What was he afraid would happen if he passed and she wouldn't get the money?

The premium isn't the problem. It's the solution.

Otherwise, there are only two kinds of sales: The easy one, and the one you don't get.
 
Thanks, guys for your informative replies.

I think Somarco helped me to see my part and the reasoning behind the "no".

I met this man socially and he has expressed a romantic interest in me. I do not share the same interest. I think he expressed interest in insurance as a manner of connecting with me. He may want it, but I now feel he doesn't feel the need of it all that much.

Somarco, your ending comment about the hybrid is what I proposed. A $100WL with $200k term. Initially, I suggested only term because I knew he was money-fearful. He asked about WL. I gave him a full tutorial, along with 3 term quotes. I always give options, and although I love making money, I have a conscience and always, and yes, I mean always, place the client's needs above my own selfish, glutinous desires.

DHK: He wanted the money to pay off the mortgage so she could keep it debt free.

Again, you both have reminded me that when someone feels the urgency of a problem, they will likely seek the solution. I like "the premium is the solution".

Recently, a dear friend called to ask about coverage for her 30 year old God son. Unfortunately, he had just been diagnosed with stage 4, metastasized Melanoma. Certainly there was urgency. When I told her it was too late to get coverage, she insisted she'd heard 'somewhere' that it was possible. He was desperate to care for his toddler sons. At this moment, today, he is intubated in ICU and has a very minor chance to live. So, to some extent, I do believe in the "If you wake up" perspective.

As advisors, how far do we go in our roll to help the client "realize" the sense of urgency?
 
I could be wrong, but I think it's more than $$$. Often in folks like that money is an excuse.

Maybe he thinks there is a cheaper alternative.

Maybe you have not earned his trust.

Maybe he doesn't like you.

I usually shudder a bit when an agent want's to know how to "close" someone. IMO the agent doesn't close anyone. The prospect/client closes themself.

Jeffrey Gitomer says "People hate to be sold but they love to buy". You have not given him a reason to buy.

At least not yet.

The old time life agents used to "back the hearse up to the door" to effect a sale. A rumored Prudential close was "Keep this app and think about it. IF YOU WAKE UP tomorrow, give me a call".

Gimmicks like that are usually not successful.

If you want to go back to this person you need to first review all that has happened so far and what he said. When, if ever, did he give a buying signal? Was the solution proposed his idea or yours? Did he understand the term-WL concept.

Did you give him a choice between 2 or 3 options or just present the one and leave it at that.

A small commission sale (term only) is superior to no sale at all.

During my brief period of selling life insurance (I hated it) I presented $500k face and gave him an option of YRT or a UL complete with proposal showing year by year accumulation. He really wanted the UL and the 20 yr YRT projection scared the crap out of him after the 6th year or so.

He asked if he could do a combination of term & UL.

I took an app for $50k of UL and $450k term rider.

Something is better than nothing.

That. You sound like a life guy.

If they like the Whole Life benefits but do not want to pay the premium. Explain conversion and sell the term. Make them a client first. If they do not go with that, next.
 
As advisors, how far do we go in our roll to help the client "realize" the sense of urgency?

You also need to balance the fact that it's not about YOUR need to make a sale, but about THEIR need to take action.

Have them sign a "Declination of Coverage" letter for your files.

Acknolwedgement of Decision Not To Apply

I hereby certify that the features of the policy offered by XYZ Life Insurance Company have been explained to me, and I have elected not to apply for coverage at this time.

It is also my understanding that this coverage may not be available to me in the future if there are changes to my occupation, health, or income.


Signature & Date

Make them sign it for your files and now they OWN that decision... or they'll think twice before signing.

----------

BTW, maybe what you showed wasn't expensive enough?

Did you show the amount of coverage with a maximum funded strategy? And show when it would "break even" for cash values exceeding the premium outlay?

A sale like that is more of a capital transfer rather than an expense. In this case, term would be a waste.
 
I was soooo close....:no:

Presented a hybrid of term-WL, $300,000. $184 month. He liked the cash-value/ aspect. Wants to leave something for his 21 yr old. And has colitis. Knows the next colitis flare up could decline him. But...."this quarter isn't good, maybe next quarter I'll apply". I know this man well, he makes 6 figures, self-employed and always watching the almighty dollar. For lack of a better term, he is just cheap.

Refuses to turn out exterior light at night - to save a few pennies of power. No smart phone data - ever though he works in IT field. Cursed himself when he bought a $2 movie rental when he later found out he had it on Netflx for free. Takes an act of congress to turn on the heat when I visit his home. I grew up #7/7 kids and we thrifted like crazy so I am a saver and frugal. But never have I seen a person with such a fear-based relationship with money.


I had him all the way to the para-med appointment before he backed out.

Can a person like this ever be closed?

Saying people are cheap is a cop out for not presenting enough value. Not trying to be offensive. But it sounds like you oversold the product and not the Paramed. I focus on the Paramed because without the Paramed you can't make the sale or even get a rate. Rarely do I ever show a rate before a Paramed is complete. If you illustrate a non_paramed complete rats people tend to get that number stuck in their head.

Sometimes you gotta be real with people. You want to wait another quarter to apply? Sometimes it can take 3 months to underwrite complicated cases. Seen it happen. Let me ask you Bob. Why do you want to wait? He'll get a worse age dating most likely.

What happens if he walks out of your office and gets hit by a bus? Will his son be okay financially? Will his son inherit his debt?

I tend to sell whole life with LTC or disability so you can leverage tragic accidents that can occur. And I own that myself so it's easy to sell.
 
What kind of health rate would he qualify for? Colitis underwriting is no joke.. how much cash value could he actually generate if he gets a low table?
 
You also need to balance the fact that it's not about YOUR need to make a sale, but about THEIR need to take action.

Have them sign a "Declination of Coverage" letter for your files.



Make them sign it for your files and now they OWN that decision... or they'll think twice before signing.

----------

BTW, maybe what you showed wasn't expensive enough?

Did you show the amount of coverage with a maximum funded strategy? And show when it would "break even" for cash values exceeding the premium outlay?

A sale like that is more of a capital transfer rather than an expense. In this case, term would be a waste.


No, I didn't show it but I thought about it afterwards. I think I was more concerned about his well-known-to-me feelings about not spending money. When I say he is a tight-wad I do not specifically mean about life insurance. I mean about not wanting to spend money....on anything. I have never seen anyone so afraid of being without money to the degree he is. This comes from our social relationship, not anything at all to do with insurance.

----------

Saying people are cheap is a cop out for not presenting enough value. Not trying to be offensive. But it sounds like you oversold the product and not the Paramed. I focus on the Paramed because without the Paramed you can't make the sale or even get a rate. Rarely do I ever show a rate before a Paramed is complete. If you illustrate a non_paramed complete rats people tend to get that number stuck in their head.

Sometimes you gotta be real with people. You want to wait another quarter to apply? Sometimes it can take 3 months to underwrite complicated cases. Seen it happen. Let me ask you Bob. Why do you want to wait? He'll get a worse age dating most likely.

What happens if he walks out of your office and gets hit by a bus? Will his son be okay financially? Will his son inherit his debt?

I tend to sell whole life with LTC or disability so you can leverage tragic accidents that can occur. And I own that myself so it's easy to sell.


MGB- I always takes a mini history of heath, meds etc before I quote. I cannot order a blood/urine etc paramed prior as I am liable to be on the hook for the cost should he not move forward. I consulted with my GA, who I respect regarding this case on this matter and that was the advice given me. Don't waste time or money with someone who isn't committed. That's the same advice I've followed in my entire sales career as well.

My GA also runs all the WL quotes. I don't know why, and as I am new and struggling to learn SO much more, I have not challenged that. So, I do not have WL quote systems for multiple carries at my fingertips.

----------

What kind of health rate would he qualify for? Colitis underwriting is no joke.. how much cash value could he actually generate if he gets a low table?

My GA suggested, with his health history, he'd rate;

Standard Plus - Non/Smoker - table 2.

48, Male
Colitis, .375 mg of Apriso – 4 x per day
(No flare ups in 10 yrs +, no surgery)

Cin Life $100k - $184 month
Age YR AP Accum Outlay Cash Val DB Pd Up
68 20 2,214 44,287 34,437 100,000 63,500
 
Let me preface comments by saying I am not an agent. I have been on the forum for a bit considering if I want to be an insurance agent, and if so whether to focus in a life or a health area.

"the premium is the solution".
Don't think so--at least not the primary solution. When you throw premium at me, you are talking about you having a way to take my money. As a member of the tightwad club, I have no reason to give it to you.

Now, at age 72, I do have a concern. I haven't earned very much money in my life. But, it would sure be nice if I could take a small handful of the little extra I have now and use my death as a lever to turn it into a larger sum for my family. Talk to me about what I can save. I can save attorney fees. I can at least reduce emotional stress over situations when I am gone by providing an increase in financial resources after I am gone. I can legally gain some ground on the IRS. There is an urgency to my decision because I could loose access to the tool which will allow me to do these things at any time. (My specific situation is different than your clients, but I hope you get the gist of what I am trying to say.)

In addition, in your specific situation, I have learned that "The Mortgage" is just cost flow one in relation to a house/home. So check this out. The death benefit on this policy is going to multiply the dollars you put into it so that your daughter will have enough money to pay off the mortgage AND to subsidize the operating costs of the home for --x-- years.

Now you are showing me about a limited time opportunity to create an ability to save, transfer and multiply my money--values which I can appreciate and receive in exchange for my money and the exam.
 
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