Transactional Selling vs. Solution-Based Selling
Presented by David Corwin My money (pardon the pun), is on solution-based selling; the difference being that transactional-based selling is too much related to the product itself. In other words, it means suggesting or pushing a particular product to your client before even learning that it might not benefit them. Imagine going to a car lot wanting to buy a pickup only to find out that the salesman seems to want you to take ownership of this great, totally awesome four door sedan. I find that many insurance professionals operate exactly in that manner. Solution-based selling can be defined as the process of developing an understanding of the customer’s needs and objectives, and then offering solutions that will help the customer address their unique objectives. Fact finding will not only uncover issues, but you’ll also learn things that you might not have, had you just tried to sell them a product. Here are some other benefits to adopting a solutions-based sales practice: • Cross-sales opportunities – you’ll uncover other areas where you can provide a service and/or product that will meet their needs. • Referrals, referrals, referrals – use any method you can as a reminder to always ask; you’ll get more introductions to other people. If it’s on the fact finder as a reminder, then it’s only natural that you’ll ask. • You’ll also know what other advisors and/or attorneys they have. • Wills and trusts – you will know that they have a trust or a will. • Permanent record – it’s a permanent record of your meeting documenting everything that you talked about allowing you to revisit missed items. These ideas aren’t meant to pass judgment on your sales system that you are currently using – and if it works, that’s great. The more successful long-term agents use solution-based selling and I truly believe that is the only way that an insurance professional should operate.
It’s time to break the ice on the topic…
Presented by Donna Ries Even a short time spent talking today with your clients can help them avoid years of dealing with the consequences of hasty, sporadic decisions later on. We all age and most people end up needing help in some shape or form. Discussing possible scenarios with your clients won’t make them happen. Actually helping your clients prepare for their extended care planning will mean less work, stress, worry and regret later on for them and their family. Addressing tough topics now will allow your clients to enjoy their time ahead. One way to start the conversation is by stating that most people expect to live a long life, right? Ask your clients if they have thought about the impact this may have on their spouse, children, family or friends and if they are concerned about being a burden to them. The care many people may require later in life are costs often paid out of pocket. Even substantial savings can quickly be spent for extended care. Some questions to consider are where your clients would like to live and who can they rely on for help. The people they consider for help may be caregivers that live miles away. The extra burden for the caregivers could result in consequences for them such as missed work, lost wages, and exhaustion that will ultimately not allow them to care for the family member in need. Is it realistic to expect a spouse to care for their loved one? It’s time to make a plan now for your client’s long term care needs. Ask your LTC marketer about how to discuss with your clients a plan for the possibility of needing extended care. Discuss such topics as: – Helping your clients pay for care in the setting they prefer. – Thinking of LTC as anti-nursing home insurance. – Avoiding the risk of depleting a lifetime of savings with Partnership protected LTC policies. – Gaining peace of mind when extended care decisions need to be made. – Continuing to benefit from the life your clients have planned.
High Deductible Survival Plan – Part Two
Presented by Brian Leising In part one, I discussed the needs many people have for both money to pay high health insurance deductibles and life insurance coverage. What if a life insurance policy could provide a traditional death benefit and a living benefit that clients could use to cover their deductible? Such policies do exist. In fact, one major insurance company lists cancer, heart attack, stroke, major organ transplant, end stage renal failure, ALS, blindness, paralysis and loss of two or more limbs as qualifying conditions to accelerate part of the death benefit. How much money could they get from their life insurance policy if one of these things happened? Here is an example from that same insurance company estimating how much money a 40 year old male with a $500,000 death benefit might receive: Age at Claim SEVERITY Minor Moderate Severe 50 $93,273 $184,293 $315,259 60 $72,065 $187,309 $349,915 70 $1,000 $63,466 $298,004 The carrier will categorize the client’s condition at the time of claim as minor, moderate or severe based on how that condition affects their life expectancy. The more severe the condition, the more money they receive. Any funds paid to the client while living reduce the death benefit dollar for dollar. Your clients no longer have to wait until they die to benefit from their term life insurance policy. How much does something like this cost? Here’s an example: For a non-smoking, preferred plus male, age 40 seeking $500,000 on a 30 year term life, the lowest price is $54.50/month. Another company with a one-time living benefit option costs only 36 cents more. A third company offers a traditional term plan that comes within a couple of dollars, with their living benefit product running only slightly more at $66/month. If your client can afford the $54 product, do you think they could afford just $12 more? In part three, I will explain methods and tools you can use to market this new term life policy to your existing clients.