What are the phases of selling a term policy?Go to Top
I'm curious from a general standpoint about the phases of selling a term insurance policy. If you were trying to sell a term policy to someone how would you proceed in a general way?
For example, there must be a phase where you are trying to develop rapport. There is a needs phase where you are trying to determine the insurance needs of the individual. There's the close.
1. Rapport
2. Needs
3. Close
I'm probably missing several phases. Any suggestions?
I'm curious from a general standpoint about the phases of selling a term insurance policy. If you were trying to sell a term policy to someone how would you proceed in a general way?
For example, there must be a phase where you are trying to develop rapport. There is a needs phase where you are trying to determine the insurance needs of the individual. There's the close.
1. Rapport
2. Needs
3. Close
I'm probably missing several phases. Any suggestions?
First thing is don't overthink! This is a people's business, you walk in since obviously you have an appointment, which really helps, I find people really hate it when you just walk into their home or office and start selling without prior permission.
Rapport, don't over play that! Your not there to be friends but obviously you hope they like you and will consider you a friend or friendly acquaintence in the end.
Ask questions, open ended and close ended, get them talking and find out what is and isn't important to them. We're talking 5 or 10 minutes so far maybe longer if you have long winded people. Listen to what they say, do they desire a big dollar term or a smaller one? One bread winner or two, children and desire to fund say a College fund if one should no longer be there? Debt issues, such as home. Do they have older policies you can replace with one or two larger policies at todays cheaper prices? Etc etc..
Explain to them how you can help them and then offer to fill out an App (the app should already be half filled out, they're free, don't worry about the trees that had to die for them! ) so you can do your due diligence and get them a policy that serves their needs. Offer a slightly higher price then you think you can get once the Carrier gives you the final offer. Its always helps when you get back in contact and tell them that the final price will be lower then you quoted! Depending upon the size of the policy and age of your clients you'll need to arrange a telephone interview or a Med appointment, sell that as a free physical!
I plan to start selling term insurance because it is easy to sell. I want to establish that I can sell insurance. If I can't sell term insurance then I should get out of the business.
Once I establish that I can sell term insurance, then I will branch out to big and better things. Ultimately, I want to sell insurance products to businesses.
The primary purpose of this post is to make sure that I understand what's involved in selling a simple term policy. Other products will come as I increase my understanding of how to sell.
Just curious, sounds like a plan. So whom are you selling for? I would suggest finding a simple "Needs Form" from one of your companies along with some flyers and go hit the streets or phone. Yes Term may be the basic product and cheapest but I think you'll find the same thing I did as you get going, selling term is just as difficult as selling any product may it be UL or WL.
I would say selling term and permenant are about equally hard to sell. The key is to create pain and then find the solution (either perm. or term).
Here are the phases:
Rapport
Discover Pain- If you died, who needs money and how much? Can you be more specific? What would happen if you died today? How does that make you feel? Ect. Give a short education on term vs. perm.
Qualify - The cost to solve your problem is between X (term) and Y (perm), most people pick a number in between that they would feel comfortable with and buy as much permanent as they can without compromising the death benefit. What would be a comfortable amount each month? Who else besides yourself will make this decision?
Close- It's important to make sure you can qualify for coverage, would you feel comfortable applying to determine what rates we will get?
Explain to them how you can help them and then offer to fill out an App (the app should already be half filled out, they're free, don't worry about the trees that had to die for them! )
James, how crass----have you no feelings for those lovely trees!!
Give a short education on term vs. perm.
Qualify - The cost to solve your problem is between X (term) and Y (perm), most people pick a number in between that they would feel comfortable with and buy as much permanent as they can without compromising the death benefit.
Do you factor into the situation if the client is saving/investing for retirement? If not, do you think allocating funds to perm ins is still a good option?
Do you factor into the situation if the client is saving/investing for retirement? If not, do you think allocating funds to perm ins is still a good option?
The short answer is yes. I usually will sell just term until their Roth IRA is maxed out and they max out their employer's match. I simply sell convertable term and explain we have the option to convert at a later date.
I generally find people that buy or even entertain Whole Life or a good solid UL have their savings in place. I find people that don't save and invest have little tolerence for Insurance Premiums, and make little bones about it. For those I generally go for the yearly premium (term) upfront to protect myself from excessive charge backs. As far as Retirement Savings, once again, you have to qualify what that exactly means. I generally promote the idea of Post Retirement, such as when they are 80 plus and their savings is quickly vanishing. Most people that are saving and investing generally know they need more if they live past 80, 85 and so on, generally easily shown with any Review. Plus with the 40'ish crowd gives me 40 years to show significant cash value within their WL or UL.
Try this thought on for size.. how about sell them what they need?
Listen to them, what do they want to do?
How long do they feel they need insurance?
Sell convertable term if they want term. Simply because most folks need insurance alot longer than they think and when they realize that they often aren't healthy enough to shop anymore.
Try this thought on for size.. how about sell them what they need?
Listen to them, what do they want to do?
How long do they feel they need insurance?
Sell convertable term if they want term. Simply because most folks need insurance alot longer than they think and when they realize that they often aren't healthy enough to shop anymore.
Good luck.
Yes, good advice yet don't forget if you are selling Term with the idea of conversion at a later time you have to sell term from a carrier that has good WL or UL Policies. Which leaves out most of your inexpensive term carriers such as Banner and other companies so popular for low cost term. Which once again I would highly suggest shorter term policies from companies like Mass Mutual, Illinios Life and others like them, which simply makes their term more competitive in premium cost.
Re: What are the phases of selling a term policy?Go to Top
Here is my experience selling life insurance....
Talk with client...
Submit application... (1 week or less)
Schedule paramed... (2 weeks out)
Goes through underwriting... (4-6 weeks out)
Find something in urine or blood that is not "perfect"...
Offer sent to client...
Client fails to return required documents (5-8 weeks out)
...Client rejects offer due to rate is not that of original quote (20-30% of time)
...Client fails to comply with outstanding requirements (20-30% of time)...
40-60% of time case actually issues...
Commission paid... (average time to be paid 2-3 months)
Ohhh and my favorite... GA screws up something on the case (95% of the time!!!)
I am referring to straight term major players AIG, ZURICH, BANNER, ETC., ETC., If you write jet apps, or no paramed this situation improves dramatically but the premiums shoot up through the roof.
Tip to anyone NEW in the business - BE CAREFUL TAKING ADVANCES!!! THIS IS A LOAN - THIS IS NOT YOUR MONEY!!!
Life is a great business but it is very cash flow negative in my opinion, like anything with insurance it takes YEARS to build and I doubt you will be driving a new Benz next week (unless you spend all of your advances!)
I know some full time life agents but make no mistake about it - it is hard work even if you are a superstar.
Re: What are the phases of selling a term policy?Go to Top
It depends upon the person. Some people want rapport, some people just want to get right to business.
I like to go in and offer them 3 options. Term, Money Back and Perminent Insurance. I show them a pricing proposal that I've built in advance and just tell them to choose the option that is right for them. They point, and I fill out the application accordingly.
Re: What are the phases of selling a term policy?Go to Top
Originally Posted by J-Ro
Couple questions.....
1. How do you handle broke people? Everybody I've quoted so far balk ove a $33 premium.
2. What sources are available for leads (lead vendors)?
3. As far as the term vs debate, would anybody mind giving me example situations for each?
Is there an association similar to the IHIAA that offers life insurance training?
1. Handle them by moving on to the next client. No sense in wasting your time with these. They will probably give you the most headaches too, even if you do end up writing them. Likely to lapse.
What are the phases of selling a term policy?
) so you can do your due diligence and get them a policy that serves their needs. Offer a slightly higher price then you think you can get once the Carrier gives you the final offer. Its always helps when you get back in contact and tell them that the final price will be lower then you quoted! Depending upon the size of the policy and age of your clients you'll need to arrange a telephone interview or a Med appointment, sell that as a free physical!
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