Life Insurance
Sales Ideas Sales Tracks
Consumer Demand for Life Insurance is High LIMRA reported that 44 percent of U.S. households said they need more life insurance and 27 percent of households said they expect to buy life insurance in the coming year.1 These results indicate that consumers are realizing their need for increased amounts of life insurance, and came from those who have never purchased life insurance, and those who already have. Product guarantees are important to consumers, and Symetra Term Life can deliver them: Premiums are guaranteed not to increase for the full term period The death benefit is guaranteed Guaranteed renewable coverage up to age 80 Quote and apply online today using Symetra Express. It will take you 10 minutes or less to apply and bind coverage for qualified applicants. Your client can walk away with the peace of mind, and a guarantee that their family is protected. 1Results from 2004 Consumer Survey by LIMRA
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Keep the family business alive You can offer a business succession plan that provides your clients with what they need to continue their business. Begin the conversation by saying, "Did you know that less than one-third of family-owned businesses survive the transition from first to second generation ownership? Of those that do, about half fail to make it to the third generation.1 Who will continue your business and maintain your relationships after you die? By creating a business succession plan now you can ensure the family legacy survives from one generation to the next." This can be accomplished through a buy-sell agreement funded by a life insurance policy. 1U.S. Small Business Administration, "Transferring Management in the Family-Owned Business," Jan. 29, 2003 (copyright 1991).
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Stay-at-home Spouses Need Life Insurance Too Most people don't realize the monetary value of the job done by a stay-at-home spouse. Recent estimates put the collective value of cooking, cleaning and childcare at approximately $40,000 per year.1 Life insurance for the stay-at-home spouse is often not considered when there is one primary wage earner. But the family would be seriously affected if the homemaker's contributions were lost. If you have single-income family clients, talk to them about the value of their stay-at-home spouse. Explain the benefits of a SymetraSM Term Life Insurance policy, emphasizing how coverage could be tailored to last until the kids leave the household. Remind them that a Symetra Term Life policy can be converted to a permanent policy if they find they still need life insurance coverage. Don't pass up this opportunity to protect your clients. Visit Symetra Express to quote and bind a Symetra Term Life policy today! 1Today's Woman Can't Afford To Be Without Life Insurance. Retrieved March 9, 2005 from www.erieinsurance.com Feb 28/PR Newswire
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Term and Perm combo Offer a combination of term and permanent life insurance to young couples with or without children—20s to 30s, investing in their own 401(k)s or with experience in the stock market. This combination will allow your customers to make the most of their dollars by purchasing as much permanent insurance as possible and supplementing the rest with a term policy. Use the following talking points for making the sale: Young families need life insurance to help provide income replacement, pay for college, protect against debt and cover final expenses. Your customers will be building tax-deferred equity while providing long-term protection for their family. Purchasing term life insurance is a less expensive way to meet short-term needs and, when combined with a permanent life policy, can provide comprehensive coverage at a reasonable cost. Complete the sale with Symetra Express, where you can quote, purchase and bind temporary coverage immediately in as little as 10 minutes. 1 Review the Sales Track for details on how to make the sale. 1Available to qualified applicants.
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Overcoming objections to purchasing life insurance today There may be situations when you hear objections from your clients on why they are not ready to purchase life insurance today. Some of these objections may sound like this: "I’d like to talk this over with my spouse." "I need to think about this." "I’m not quite ready to make a decision." "I want to comparison shop." Here are some ways that you can respond to these objections: You’re absolutely right to consult your spouse on this important decision. A word of advice, though…you have it on the front burner now—keep it there until you’ve resolved it. When you think about it, think about how that premium of $______ is only the cost of a large pizza and a couple of movie tickets. We could complete the application right now in 10 minutes . . . Let me jot down the quote for you (or, please take the quote along with you) so you can be thinking about where it fits in with funding your dreams and hopes for your family. While you’re talking it over, talk about those big expenses and how either one of you would manage without that second income. You may need some protection for your spouse, too. Keep in mind it will never be easier than it is today, so don’t wait long to decide. Complete this meeting by discussing a follow-up plan, either as a pre-scheduled meeting or a phone call within a designated period of time.
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Mortgage payoff protection Make it a habit to ask each and every home loan applicant if they'd like "mortgage payoff protection." Get the conversation going by asking your clients how much life insurance they currently have and whether it’s enough to payoff their mortgage if something happened to them. Clients may say, "I already have coverage." View this as information, not an objection. With a new mortgage, their current life insurance policy may not be enough to protect their family, Discuss the need and suggest a solution. In addition to mortgage payoff protection, clients need to be thinking about having enough insurance to cover final expenses, family income needs, and future college expenses. For most people, the family home is the biggest asset and the biggest monthly expenditure. When they’re applying for a new loan, it’s the perfect time to start a conversation about their life insurance needs.
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Cross-selling to P&C policyholders If you sell auto and homeowners insurance, you’ve got a distinct competitive advantage because your hottest life-insurance prospects are already your clients. If your clients are buying a homeowners policy, changing existing coverage or simply insuring a new car, this is a prime opportunity to talk to them about the importance of life insurance. With Symetra Express, you can help qualified clients quote, purchase and bind a life insurance policy in as little as 10 minutes.
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Life insurance for new homeowners During the 1990s, the fastest-growing segment of new homeowners was among buyers who made down payments equal to only 3 to 5 percent of the property’s value. 1If your clients are in this group, they need life insurance. Here’s why: Mortgage qualification is usually based on the combined household income of the applicants, which naturally assumes both incomes will continue. Dual-income homeowners often assume they don’t need life insurance, because if one spouse dies the survivor would simply sell the home. However, in a situation where the debt-to-equity ratio exceeds 90 percent of the property’s value, closing costs could easily exceed the home’s equity. (Closing costs for a seller average about 9 percent of the home’s sale price.) This same advice applies to homeowners who have taken advantage of low mortgage rates to refinance their homes and increase the amount of debt to equity, especially those homeowners who have a resulting debt-to -equity ratio of 90 percent or higher. 1"Recent Changes to a Measure of US Household Debt Service," by Karen Dynan, Kathleen Johnson, and Karen Pence of the Federal Reserve Board's Division of Research and Statistics, October 2003.
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Term vs. UL analogy Pull out an old-fashioned cloth handkerchief and a box of tissues and ask which your client prefers? Explain that while both perform equally well for a sneeze, term life is somewhat like a tissue – it has only one use, a payout upon death. Now ask them to think about all the ways they can use a hanky. It protects fingers while pulling off a hot radiator cap, wipes up a spilled cola, and grips a stubborn pickle-jar lid. Plus, it’s there for a sneeze! A universal life (UL) policy from Symetra Life Insurance Company also offers versatility. It allows clients to build cash value they can use for living – a car, a trip or tuition. They can also borrow from it, repay it, and borrow again. So even while protecting loved ones with the death benefit, they can reap the cash value their premium dollars earn.
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Life Events Lookout Keep your eyes open for customers who may be experiencing a major life event, such as welcoming a new baby, getting married, buying a home or starting a business. Take the opportunity to offer life insurance to these customers by saying, "Life-changing events such as yours often create a need for additional life insurance, because these events can result in new financial responsibilities. Allow me to quickly show you a quote for $100,000 or $200,000 of term life insurance. Term insurance is usually the least expensive type of life insurance and you may be pleasantly surprised by the premiums."
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Don’t sell lawnmowers, sell short grass While on a call an agent asked how many lawnmowers the shop sold each year. The owner replied, "We don’t sell lawnmowers, we sell short grass." It’s just as important to remember that no client has a burning desire to buy life insurance, but they nevertheless understand the need. Here are some sales tips: Ask every client if they’d like a review. Address the concerns of those who fear long-winded, high-pressure sales pitches, or don’t understand the need. Promise to limit the meeting, and to deliver an educational and positive experience. Rather than focusing on product and price, make short and needs-based presentations. If the client is unable to provide a dollar figure for the four basic needs — final expenses, home, education and income replacement — walk them through the process and convince them to take ownership of the numbers. If your client lacks adequate insurance, use this simple formula: Identify the problem, propose the solution, and ask them if they want do something about it. The important thing is to take control before the lawn gets unmanageable.
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