Would you consider talking to me about free life insurance? Or, would you trade a cup of coffee to educate your kids, pay off all your debts, and pay your bills for five years? Or, if I could show you how to have a happy wife for the price of a cup of coffee, would you be interested in finding out how? I know what you’re thinking: “You’ve got to be kidding.” Actually, no, I’m not. If you don’t meet five people a day, you’re not interested in being successful in this business.
As I’ve mentioned before, I love term insurance. It allows applicants to purchase the amount of insurance they need rather than what they can afford. Young people especially need inexpensive coverage. It is very easy to sell.
Have you joined the “app-a-day” club? Let’s say you write just one policy per day at only $80 per month premium coverage. That’s $960 of annual premiums per day. There are 255 selling days in 2010, not including holidays. If you take out 20 days for vacation, that leaves 235 selling days. 235 x $960 = $225,600. With a standard street contract at just 90%, that’s $203,040 of yearly income. After 10 years, you’ll have 2,350 clients, assuming nobody dies. With conversion privileges and annuities, plus new opportunities with the same clients, well, you get the picture!
Here is a simple presentation that takes 20 minutes. It will close almost every time. The setup: A young couple in their late 20s or early 30s. Both are employed, they own a home, and have two scrappy little kids. Your presentation is on return-of-premium term insurance.
Develop a single sheet with a list of all possible expenditures that they could have each month. Leave the amounts blank. Just list the categories, like mortgage, electricity, cable, phone, food, etc. You will have more than 30 categories. Ask them to tell you what they are spending each month for each one. Fill in the blanks. Fill in the total. Let’s say it’s $5,000 per month.
You then ask this question exactly in these words: “Mr. Smith, how long do you want your wife to wait before she must find another husband to pay the bills and be the father to your children?”
Do not look at her. She will be staring a hole in the side of his head waiting for an answer. He will say “Forever.” You then help him off the hook and settle on five years.
Then ask them how much their debt totals, including the outstanding mortgage. With that done, next ask them how much they think it will cost per year to send their kids to college. Multiply by four and write that down. Annualize the monthly amount, multiply times five for five years, and add the three together.
You now have a thumbnail of their insurance needs. Let’s say that the total is $750,000. You have now laid out, very clearly, what their need is. I have rarely found a wife who didn’t want life insurance on her husband. It’s almost always the husband who resists. Men usually think logically, and you have just shown him the problem in writing. Let’s say the premium for him is $75 per month on a R.O.P. term policy for 30 years. You now multiply 75 x 360 which totals $27,000.
You then say: “Mr. Smith, if you die, your wife will be able to pay the bills, educate the kids, and pay off all your debts. If you don’t die, you will have spent $27,000. Do you think it’s fair that the insurance company keeps your money?” He will say “No.” Then you say, “We don’t either. If you don’t die in 30 years, the insurance company will write you a check for $27,000. Do you think that’s fair?” He will say “Yes!”
He will be happy! She will be happy! Write him up!
Do this every day for a year, giving you $203,000 in income. Go out for dinner and celebrate your new career. By the way, if you need the worksheet, let me know.
More prospecting columns by Kim Magdalein.
Kim L. Magdalein is a producer and owner of www.PresentYourPractice.com. He entered the industry in 1985, and went into private practice in 2001 serving the Jacksonville, Fla., retirement community. He has personally presented hundreds of seminars and created a thriving practice. He created Present Your Practice in 2004 to serve producers with seminar productions and methods for optimizing seminar attendance with qualified prospects. He can be reached at (800)909-9894.
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