so how often does this really happen to
you because it happens to me I'm sitting
down with my customer to start talking
to them about life insurance and all
they're wanting to do is focus on a term
policy or they're just wanting to know
exactly what the price is of that policy
well stop it and ask yourself why are
they asking that question or or why are
they wanting to just focus primarily on
interim policy well the fact is your
customer is just focusing on life
insurance and how it benefits their
beneficiaries and not exactly how it can
help them personally well what if we
could change the dynamic of that
conversation start focusing on the
living benefits associated with life
insurance as opposed to focusing on how
it can benefit the beneficiaries my name
is Tristan Thomas with lists' Academy
and today we're going to do exactly just
that we're going to focus on a method a
simplified method that's going to help
impact every conversation that you have
with your customer about life insurance
it's what we call the live policy
description it's something that I used
personally many times before to talk to
my customers about the different types
of life insurance this exact
presentation that we're going to go over
today help me close $, a year ten
paid policy solely on the first
conversation being this sales method now
in this video we're going to go over
first how it helps the client it's going
to help them understand exactly how a
life insurance policy works if you start
to talk to average Joe walking on the
street what life insurance does they're
going to tell you that life insurance is
for my beneficiaries not for me
well we're going to change that what
we're going to do is we're going to
focus on exactly how it can help them
personally the person that's paying the
premium think about this as well if your
customer is paying even $ a
month for life insurance if they don't
understand the living benefit concept
what do you think's the first thing
that's going to go away when times get
tough it's the life insurance policy so
we need to change the dynamic in this
conversation we're going to debunk any
permanent myths that your customer may
have because they listen to the media
they listen to the Orman's of the
rohde that talk about how terms the best
way to go and permanent policies are not
something that you should have right you
should by term and invest the difference
but we both understand that that's not
the case also it's going to be a
realization of the living benefits
you'll be surprised exactly how many
customers are amazed that permit
policies actually build cash value and
exactly how that can be used for their
own personal use also they're going to
purchase based on a desire they're not
going to be thinking that you sold them
a particular policy you're empowering
your client to make the best decision
possible on their particular need for
you as an agent advisor it will provide
a clearer understanding of life
insurance being offered and this isn't a
minute presentation this only
takes ten minutes to do in front of your
customer it discusses the benefits of
all types of policies so you're letting
them know exactly how we turn policy
works any permanent policy works but you
again empower your client to make the
best decision possible
as you see right there also it causes
higher premium cases like I said this
help me close $, a year pay
policy solely on the foundation of this
sales method and always always a good
thing we're going to increase the live
closing ratio that you have with this
method so when should you use this when
should you start talking to your
customer about the live by policy
description well any live conversation
that you have anytime that you have the
ability to talk to your customer about
life insurance this is the exact method
that you want to use in bringing up the
conversation build a foundation first
before you start talking about all the
added writers and and other little bells
and whistles to a life policy and any
term conversion opportunity I know
you'll have a few people in your book
that have a term policy well that term
may be coming up do and if so what you
want to do is you want to educate them
on the benefits of a permanent policy
all right so let's jump into that that
method that we use with our customers
now when we're talking about this we're
talking about this when our customer is
in front of us this is something that we
should never email to our customer
because it does not have the same impact
so this needs to be done when we're
sitting in front of our customer at our
desk or at a Starbucks or wherever it
may be so usually the way that I bring
this up is I tell the customer now mr.
mrs. customer do you mind if we go over
a quick way to show exactly how the
different types of life insurance
policies work this is something that I
showed one of our previous customers and
they understood exactly how it worked
would you mind if we do the same then
they'll say absolutely so this is the
exact sales method that I'm using so
what I'm going to do is I'm going to
break this up into three different
columns okay so it will be term return a
premium and a permanent policy now the
numbers that I'm using are not the
customers numbers you never want to use
the customers numbers what you want to
do is you want them to focus on the
concept and not the price so if you're
putting their exact numbers in these
columns what's going to happen is
they're just going to say wow the term
policy is so much cheaper than the
permanent policy and that's the last
thing we want to do so I'm always
generalizing the numbers and the numbers
that we're using here are for a -year
old male non-tobacco for a hundred
thousand dollars in coverage so always
for trol non-tobacco for a hundred
thousand dollars in coverage now if the
customer is a female all I'm doing is
I'm saying that these numbers are for a
-year old female non-tobacco hundred
thousand dollars in coverage the reason
why I want to do that is because I don't
want the numbers to change but that I
want them to understand exactly how the
concept works and make them understand
why I could benefit them personally so
what I want to do first is I want to
talk to them about the exact cost per
year now before we go any further I want
to let you know that we're talking about
a twenty year term and a year return
or premium and the permanent lasts for
the duration of however long that
customer lives right so the first thing
that your customer is wanting to know is
exactly well what's the price that I'm
going to pay on an annual basis well for
that year term you would pay $
return a premium would be and the
permanent would be $, per year so
that's the cost that your customer
pay each and every year going forward
now right off the bat what is your
customer thinking well shoot
I want the turn policy and I don't want
the permanent because it's $, more
expensive right well let's fast forward
years mr. and mrs. Kyne is what I
tell them let's fast forward years
and let's talk about when this customer
is years old if they pass away within
that year time frame all policies
work the same in where the hundred
thousand dollar death benefit will be
passed along but what we care about is
the th year after that duration is all
all said and done right so let's focus
on that when you're what's the total
cost that you pay over that -year time
frame well with the term policy it would
be $, return of premium would be
$, and the permanent would be
$, so that's the total cost that
you paid over that -year time frame
but mr. mrs. client that's not what we
care about right that money is all gone
you already paid that money that's
already said and done the years is up
you didn't pass away congratulations
so what we care about at this point is
the benefit to you personally mr. mrs.
client what equity have you built up
over this -year time frame what value
do you have out of all three of these
policies and in our industry mr. mrs.
customer we call that cash value
now timeout for a second now the reason
why I say it that way I talk about
benefit equity and value is because they
understand those words we understand
cash value so what we want to do is we
want to use words that are synonymous
with cash value if you can have your
customer understand how cash value works
and the benefit to them personally they
start to understand why cash value is
such a necessity so mr. mrs. client
let's talk about that cash value on that
term policy you don't have any cash
value that's being built up into the
policy it's that life insurance is only
for a term after that term the money
that you put in went to the cost of
insurance and you have nothing out of it
return of premium works just like the
name says so you receive a check for
$, did I taking that money putting
under your mattress and not being able
to touch it for years now the way
that the permanent policy works and and
there's different ones there's the whole
life the universal life and so forth but
in essence the way that it works is we
take the twenty six thousand dollars
that you put into it subtract the cost
of insurance and either pay a dividend
or an interest rate depending upon which
policy it is and if we maintain the same
dividend option you would actually have
a cash value of twenty seven thousand
dollars that you have access to now
timeout up ten out again for a second
what I want to do is I want to tell them
exactly how cash value works and how a
permanent policy works but I want to
simplify it as much as I possibly can
so all I say is I say we take the twenty
six thousand that you put into it
we subtract the cost of insurance and
then we pay out either a dividend or an
interest rate I don't give any any
further information along those lines
because I don't want them to be bogged
down in all this information about how a
permanent policy works I want to
simplify it for them personally so
that's exactly how cash value works on
all three of those policies but now
let's just say you need life insurance
in years and hopefully you don't but
our job as your life insurance sales
expert is to make sure that if you do
need life insurance in years that you
have the ability to get it hopefully you
don't but let's just say that you do if
there are people that are dependent upon
your income we both understand that you
need life insurance so if you do need
life insurance I need to ask you mr.
mrs. client what is your health going to
look like in years well the fact is
we don't know right we don't know
hopefully we we don't but we could have
high blood pressure diabetes
god forbid cancer all these things would
make us uninsurable or would have affect
our insurability right well if we're
wanting another term policy in years
we need to go through the same
underwriting standards that we went to
went through years ago and the fact
is we're not sure exactly what our
health is going to look like that will
impact our insurability same thing with
return of premium we need to go through
the same underwriting standards we went
through years before well what about
the permanent
see though the fact is you don't have to
go through underwriting anymore the one
time you go through it is the only time
you'll have to go through it based on
that policy the reason why is because
mr. mrs. client it is our promise to you
that as long as you keep painting at
, per year we're gonna pay out that
death benefit regardless of your health
moving forward but let's just say that
you're in perfect health let's just say
you're running marathons triathlons
doing whatever you do let's just say
you're in great health well let's talk
about what the cost per year at sixty
years old would be right years into
the future well one thing that we can't
do mr. mrs. client is take into account
any inflation that you that that may
occur over the next years right we
can't take that into consideration
all we can really do is we can look at
exactly what the price is today for a
year old male non-tobacco for $,
in coverage well the fact is it's going
to be much more expensive than that term
policy in fact it will actually be
$, per year roughly five times the
original amount moving forward is what
you would have to pay for the next
years return a premium roughly four
times that original amount you're paying
three thousand three hundred dollars per
year but mr. mrs. client what do you
think you're paying on that permanent
policy well the cost is exactly the same
as it was from day one you're still
paying thirteen hundred dollars per year
well let's fast-forward another years
mr. mrs. client let's just say that you
don't pass away from each to age
because if you did pass away all three
policies work the same where we pay up
to $, death benefit so what we
want to know is first how much did you
pay but then we'll talk about the
benefits after that th year well the
cost from age to age on that term
policy would be thirty four thousand
dollars so I'm just taking the ,
multiplying that by so the total
amount that you paid into it was $,
return a premium sixty six thousand
dollars and again on the permanent would
been twenty six thousand dollars but
since that never went away the total
amount over that -year time span that
you paid into it was fifty two thousand
dollars and that's why I have an imprint
but again mr. mrs. client what we care
about is the benefit to you personally
right we care about the equity that
you've built up over that -year time
frame and what do we call that again mr.
mrs. Clinton cash value right now you
see how I did that as well what I did is
I said we want to focus on the benefit
we want to focus on the equity the value
that we built up and then I propose the
question what do we call that again the
reason why is because if they can use
the same terminology that we're using
then they're understanding exactly how
the life insurance and the benefits to
them actually work such as cash value so
I then say mr. mrs. client on that
-year term you paid thirty four
thousand dollars into it again what do
you get out of it what's the cash value
that you built up they'll answer zero
I'm just paying for that duration and I
get nothing back that's exactly how it
works well how about that return of
premium policy it's just like the name
says returns all of your premium so you
receive a check for sixty six thousand
dollars like taking that money and
putting it under your mattress right now
how about that permanent policy again
what we do there is we take all the
money you paid into it so the total
fifty two thousand dollars we subtract
the cost of insurance because there is a
cost and then we pay out either a
dividend or an interest rate depending
upon what type of policy but in this
case if we're paying out a dividend over
that forty year timespan the cash value
that you would have accumulated would
have been $, thirty thousand
dollars more than you had put into the
policy and again who has access to that
money you you personally have access to
all eighty two thousand dollars well
let's just say you're years old now
and you do need life insurance our hope
is that you don't need life insurance we
hope that you don't need life insurance
because you're self insured but the fact
is there may be still a need for life
insurance right and if there is a life
insurance what is our job our job is to
make sure that you have the ability to
purchase life insurance or at least have
it at age well regardless of health
can you purchase a -year policy
jjt you're not sure but regardless of
your health doesn't matter who you are
you cannot purchase any other -year
life insurance term policy return a
premium same thing you can't purchase it
but what do you have with that return of
premium policy you have sixty six
thousand dollars to your name now in
essence you are self-insured just take
twenty five thousand and store it away
for a funeral and do something else with
the other forty one thousand dollars
right well what about that permanent
policy do you think you're still insured
absolutely you still are insured you
still have a hundred thousand dollars in
coverage that's still insuring your
family but what else do you have
you have eighty two thousand dollars to
your name the only one of these three
policies that actually doesn't help you
personally mr. mrs. client this is the
term policy because you paid over forty
thousand dollars excuse me forty
thousand dollars you put into this
policy and you got nothing out of it
it's just the peace of mind that you're
paying for so that's exactly what I want
to show my customer on exactly how the
life insurance policies work but the
most important thing is I want to show
them two different questions
all right Susan I want to propose two
different questions to them this is the
first question the first question is I
say mr. mrs. Clinton if price was not an
issue which policy would you prefer and
why right so if price was not an issue
which gets rid of the objection a price
which one would you prefer and why and
then I just stop talking the answer
undoubtedly would be the permanent
policy I then asked them what and they
tell me well the cash value builds up
that I get to use you don't to check my
health in years the cost doesn't get
up oh yeah and I've cashed value in
years the fact is a lot of your
customers will not say that they're
still insured at age or at least they
have a death benefit on this side the
fact is your customer will focus
primarily on the benefits to them cash
value the health cost and again the cash
value so then I want to ask them if
price was not an issue again which again
gets rid of the objection of price which
policy would you not want and why
Oracle question the answer that your
customer will say is well I don't want
that term policy and then I ask them why
they'll tell me well no cash values
being built up you need to check my
health in years
cost goes up drastically and again no
cash value oh yeah by the way I'm not
insurable at the age so that's
exactly how the policy work excuse me
this is exactly how the sales method
works that you want to show your
customers now let me actually go back
for a second a lot of my agents and
advisors that I speak with about this
and show them they become a little
intimidated on the numbers that I'm
using now I've done this five six maybe
even seven hundred times with customers
and I'm understanding exactly how the
numbers work and it comes off very easy
for me but there was a time where this
was brand-new to me personally so all I
did was I wrote it all out in my own
writing and I brought it to the customer
and I said hey mr. mrs. client do you
mind if I show you a quick sales idea
that I showed someone else
previously their answer absolutely the
numbers were already written now all I
did was I just covered it and I just
told a story and I just went down row by
row going over exactly how the policies
work over time I became more comfortable
and then was able to show my customers
exactly how this works just on a yellow
pad of paper and just started to write
it down you can do exactly the same so
just again going over the benefits of
this for the client understanding of how
life insurance works that's one of the
hardest things for clients to understand
but we're doing just that
we're debunking any permanent myths so
all the Orman ideas that are going out
there those are all debunked realization
of the living benefits exactly how it
can help them personally people are
selfish it's just by nature so if we can
show them benefits to them personally
it'll help in the sale of that life
insurance and by asking those last two
questions we're empowering our clients
to make the best decision possible
and they're making this the decision not
us for you as the agent or the adviser
you're providing a clear understanding
of exactly how life insurance works what
you're also doing is you're discussing
the
benefits all types of policies so you're
not just selling them on permanent
policy the permanent policy you're also
showing them exactly how they all work
you're empowering your client to make
the best decision again higher premium
case I can't stress enough how this
helped me close that hundred thousand
dollar a year life insurance it was a
pay policy solely based on this first
method that we used and we're all happy
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