Prospective clients are being sought after
Phillip joined our captive company because of two reasons. He was quickly asked to leave. We offer products that are superior to those he could offer through his private agency. We have a lead system, for which we pay 7% of all our commissions. This eliminates the effort of finding prospects. He continued to run his own agency, which was in violation of his contract.
Phillip’s actions, regardless of whether he was right or wrong illustrate a truth that all insurance agents know. Finding people to talk with is the hardest part of insurance business. Referrals and calls backs are key to your success. It takes more than selling a policy to get clients to do your marketing.
Once you have them, keep them.
One question can help you determine if a lead will become a long-term client. What amount of time and what service are you willing give for no commission?
The first step to gaining the business is making an appointment with your prospect. You can’t have a business without that appointment. It is just one step towards obtaining and maintaining a business.
Being viewed as a “real person”
Trust is becoming a dangerous commodity. Many scammers lurk on the streets looking for opportunities to profit from the unsuspecting. It is crucial to show your prospect that you are a real person. Someone with a phone number and an address. I explain to my prospects why I am interested in insurance and what I have done before. I also tell them where I live. I give my prospects a brief written bio and a bookmark with photos of my children, grandchildren, and me. They tell me about themselves and we have a 5- to 10-minute exchange. It is a good way to break the ice since I am not likely to con someone who has enough information about me to send me to jail.
Finding the right solution
We are back in business within a matter of minutes. I always ask them if they have any information about my company. I can give them a little more information, even if they don’t know anything about my company, such as the types of services we offer, the speedy claims payment and the assets that support it.
Even if I know the product that my client might be interested in, I start with a simple questionnaire we call a “needs analysis”. There are a few variations depending on the situation. I can quickly determine what type of health insurance a person has. If she has Medicare or Medicaid, I know I don’t have to waste my time on Long Term Care or any other kind of health product. Their life insurance is the only thing that I can help them with.
Understanding the prospect
Once I’ve decided what my approach should look like, I explain to them that I want to provide information and then offer some solutions tailored to their particular situation. First, I need to ask some questions. Next, they will have to decide what to do. The next step will be to decide whether to take action on any one of the options or not.
Then, I ask questions about areas that will have the greatest impact on someone’s health and future. I will ask them what type of life insurance they have and when it was last reviewed. If they are able, I will ask them for their policy so that I can take a look. This has led me to policies that were either Term Life or universals, with increasing premiums. Nearly everyone believes he has lived his whole life. My experience shows that at least 60% of them are incorrect.
I ask about the client’s health first, then Long Term Care. A person who is currently using a wheelchair or a walker, or is suffering from serious illness such as diabetes, will not be eligible for Long Term Care. However, if his health is good, I will engage him in a conversation about extended care and friends. We must acknowledge the possibility of extended care in the future. This will help to ensure that the family is not burdened financially, emotionally, or physically.
Educating the prospect
This discussion, which can last anywhere from 20 minutes to an entire hour, is not about sales. It is education. Many people are not familiar with insurance terminology and are confused about what they have. People buy insurance because they must. Then they store it away, thinking they are secure and protected from any new threats. A salesperson who is able to open that door and clarify the client’s understanding of their insurance policies has a better chance of closing a sale.
Sometimes, opening the closet can feel like opening a bag of worms. A client recently shared two life insurance policies, each 15 years old. Each policy cost $50,000 for him and his wife. Both the policies were labeled “whole lives” on both the deck page and the cover sheet. He also stated that the premium was “payable for lifetime”. He was notified this year that his premium would increase from $60 per mo to $308 if he wanted to keep $50,000. His wife would pay $290 more for her premium. The company had already informed him that, despite what the deck page said, the policy was a Term policy. Premiums will continue to rise. There is no mention of Term in the policy. He did not know that there was a paragraph in the policy which stated that the premium could be subject to periodic recalculation.
Is there a basis for the client to complain and request a return of premium? I believe so. He knows that he doesn’t want to pay more for it now than it did 15 years ago. However, he also wants a policy with no increases in premiums and guaranteed benefits that lasts his whole life. He wouldn’t have known if I hadn’t shared his entire life/health insurance package.
Implementing the policy
Our company will require personal delivery once a policy is issued. We also need a delivery receipt. According to some experts, every minute spent with a client after the delivery of a policy is equivalent to one year. Additionally, more policies can be sold when a policy is delivered than on the first visit. You have earned the client’s trust enough to give you the first policy. Before you go to the house, take the needs assessment along with you. The needs assessment should be completed. Are children getting married, grandchildren being born? Who are the beneficiaries of the life insurance policy you are delivering? Visit the person and give them a business card. Include the policy number on the back. Let them know that you are available to answer any questions or help them in the event of a claim.
You can generate repeat business opportunities
After your business is established, you can generate additional business by doing unexpected things. Drop in and deliver a small package of Russell Stover chocolates to the local business. You can give a small gift or token of appreciation.
