Starting the Conversation How to Initiate the Life Insurance Conversation With Your Clients
You know how they say there are only two guarantees in life, and taxes is one of them? Well, this is about the other one. To be clear…. death. It’s perfectly okay if talking about this subject with your clients makes you uneasy. It’s that way for most people. But planning for the end does not make it come sooner; in fact it might even have the opposite effect. It’s one less thing your clients have to worry about -- and they do worry. Take a household with children under age 18. According to a past LIMRA study, nearly half of these households would have immediate trouble paying for their everyday living expenses if the primary breadwinner died. That’s a staggering statistic. The same study states that 8 out of 10 households don’t have a life insurance agent or broker. That’s a huge opportunity, but only if we can get comfortable starting the conversation. It may require practice, but here’s how you might initiate conversations with anyone – whether they have some coverage or none at all.
What you might say to people who have some insurance…
“Just as you review your auto or homeowners policy, it’s also important to periodically review your life insurance coverage. When was the last time you reviewed your life insurance policy?”
You will find that many clients have never reviewed their life insurance policy other than to open the annual statement and pay the required premium. You need to inform them of the benefits associated with an annual life insurance policy review.
“Does your life insurance policy still meet your needs? A policy review can gauge the policy’s effectiveness taking into consideration changes in the industry and your life since you first purchased your policy”
“A policy review can result in a lower premium with the same or increased coverage. If not, you will have the comfort of knowing that you have the right product, the right coverage amount, all at the best possible premium”
It’s important to stress with your clients that a policy review is not a replacement program, but is instead a valuable service provided by your agency.
What you might say to people who have insurance through their employer…
“Insurance through a benefits package may be limited and buying additional coverage through your employer can be more expensive than buying it outside the workplace. Plus, your policy may not be portable, so if you leave your job, your coverage does not go with you. Sometimes a policy on your own is better – the price is determined by your age and health and not the pool of your coworkers.”
What you might say to people who have no insurance…
“Having life insurance can help ensure that one of life’s most emotional times isn’t also full of questions and confusion. It helps protect the life you and your family have built after you’re gone. Even if you don’t have dependents, you may want to consider some level of coverage to take care of loved ones or help causes that you care about most.”
What you might say to couples with coverage for only one person….
“If income goes away – whether it’s his or yours – it either needs to be replaced, or some lifestyle change may need to occur. Too often it is assumed that only the man or primary breadwinner needs to be insured, but this notion is short-sided. Many households today rely on two incomes, and a loss of either could have significant consequences.”
“If your family lost one income due to death… What lifestyle changes would be required? Would your family have to move? Would the surviving spouse be able to follow through with educational plans for your children? Would your spouse have to work more to survive financially?
Help Get the Conversation Started! If you are an insurance agent, having a conversation about a topic like death and life insurance is possibly the most important conversation you can have with your client. It’s not an easy conversation, but one you can get comfortable having with some practice. If you’d like to discuss how to start the conversation, how to secure life insurance for your clients, or perhaps a challenging case, give us a call or send an email.
About the Author
Raymond McMannis CPS Insurance Services. T: 1-800-326-5433 Ext 101 E: [email protected]
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