Tuesday 17 January 2012

Reasons to Buy Life Insurance, Selling the Benefits to Your Clients

In our recent edition about the four drive theory, we talked about the drive to defend, that is enacted in response to threat. Particularly the threat to acquisitions (the drive to acquire) and to a clients self and family.

In financial planning a common train of thought is that insurance is sold, not bought.

We disagree.

We believe that insurance is bought. That financial planning and insurance agent clients make conscious emotional and strategic decisions to buy insurance, BUT ONLY IF they have been made aware of the consequences of adhering to the status quo.

Rather than a hard sell, we believe that clients will purchase the right insurance cover at the right levels and satisfy the drive to defend if you as a professional adviser in your sales process:

- give them the statistics......do your research and find issues that you are passionate about...namely underinsurance...and how changing family demographics and social issues exacerbate the underinsurance risk

- make them aware of the risks they know they face but don't speak of

- show them how they can defend themselves

- be passionate about it

- share your claims stories

- get emotional and connect in a profound way with your clients

This means you need to do your research. Good resources are:

- lifewise.org at www.lifewise.org.au

- the family characteristics and transitions report or any such demographic report that looks at issues facing families and highlights the value of intergenerational advice

But the most important tools in your arsenal are:

- you

- your clients that have claimed

- the client sitting in front of you

By using appropriate questions about what is important to them in their social and family circle and by dispelling myths they may hold about their vulnerability and capacity to cope, they will with your professional guidance self select the appropriate levels of insurance cover.

Your role in this is a guide, a resource and an advocate.

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