critical sales ideas for agents

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For Internal Reference Only

CRITICAL SALES IDEA

By Azri Amin

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Help prospects understand why they should buy critical illness insurance or life insurance by using a light bulb as an example. Explain that a light bulb requires an electric current. What happens if the electricity stops one day? Tell your prospects that the bulb is their family and the electricity is their income. To guarantee that their light bulb is always lit, they need to buy a power generator, which is critical illness insurance or life insurance

ACTION DATE RESULT / OUTCOME

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On a piece of paper, draw a circle like soccer ball. Now draw a steep downhill slope, showing the ball behind held in place by wedge. Now explain to your clients that the ball represents their family and the standard of living they enjoy. The wedge is keeping the ball form rolling downhill. Explain that if something happens to the prospect, it would be like removing the wedges: the ball will roll downhill and cause an unnecessary and preventable disaster. Tell them that you can help secure the wedge that supports their family.

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Hand your prospect or client one of your business cards. Ask them to write on the back of the card the names of three people they know who can guarantee to replace their income indefinitely when they become diagnosed with an illness. Surely they know three people . Parents? In-laws? Boss? What about their financial advisor or their banker? When they can’t think of anyone, turn the business card over and say, “My company can” or “I can.”

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Add an audio business card to your marketing plan. Create a recording that explains your services. Package the recording with your photo, resume and testimonials from clients. This will allow you to consistently get in the door with hard-to-reach prospects and quickly build a rapport with them. If you talk less in appointments, then your clients will talk more. Use this tool to upgrade your clientele.

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Establish yourself as the premier resource for a particular niche or specialty product. For example, become involved with any of the following: charitable organizations, local universities, local accounting firms, local legal firms, local mortgage brokers.In addition, conduct seminars for various organizational boards.

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Invite 25 of your best clients to a seminar on something totally unrelated to your business, and supply lunch. It could be a gardening class at a local gardening center. Ask each client to bring a family member or friend as a guest. Call your clients before the event to confirm their attendance as you prepare for this show.

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Invite accountants in your area for a golf game and a seminar with lunch. Try holding the seminar with lunch first, followed by the golf. Remember that referrals are your priority, not trying to sell prospects right away.

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Here are two customer service ideas to use with your clients.

1. A personalized “policy summary” for each client outlines the key insurance benefits and coverage item. This serves as a convenient reminder of the sufficiency of the client’s coverage.

2. A personalized “insurance card” which has the policy number on the front of the card and additional, pertinent information on the back

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Put a hole in all your business cards that your give to prospective client. When someone asks you why the card has a hole or what you do for a living, say that you fill holes in financial plans. You can also use these cards for mailings. Include one with a note that says “ if you don’t have (name a product you believe the client or prospect needs) in your financial plan, you could have a hole in it.”

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The $100 Challenge: Place a $100 bill before your clients at the beginning of your appointment and tell them, “Mr. and Mrs. Client, you know I am in the financial health – also known as the money – business. If I don’t remember to ask you for the names of two people you haven’t introduced me to yet, this $100 is yours to keep.” If you try this for a month, you will either be broke or have more names than ever before to call on.

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To sell business insurance, look for a business for sale in your local newspaper or in a real estate listing.

Take the ad and a stack of blank index cards and go to every business in that area.

Show them the sale ad and ask what happened.

If they know, they will tell you.

This is your opportunity to, “ I am surprised. Didn’t they have business continuation insurance?”.

The business owners will ask, “ What is that?.”

Explain. Tell them it’s what you do.

Use the index cards to write down the information you will need to get them a quote or illustration.

CONTINUED

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You can go from business to business this way. You can complete 20 index cards in one day.

When was the last time you spoke to 20 prospects in one day?

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Send letters to the rich or those who run large companies, outlining how they can increase the value of their personal estate by 100, 200, 1,000 per cent or more by just meeting with you for a short appointment and following a single suggestion.

Ask them: “Would 30 minutes of your time be worth 100, 200, 1,000 per cent or more of your estate value?”

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When proposing a policy to a client, take illustrations to show what an increase of 25 per cent and 50 per cent of the same benefits would do for that client’s financial health. A percentage of your clients will at least pick the 25 per cent increase in their policies, thereby increasing your production with just a little effort.

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Have your clients’ cars washed while they are attending your office. You can arrange for a local company to do that on short notice. This unique way of treating clients can distinguish you from other financial advisors.

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Rent a movie theatre and host previews of new movies for your clients and guests. Have a representative of your agency go on stage and thank the audience for coming and for doing business with you. Be sure to point out that this is a small token of your appreciation for their business.

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Make a big deal of sponsoring sporting teams and events by having the teams named after your business. This generally garners some interest from newspaper, radio and TV media.

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Offer your clients a special menu while they are in your office conducting their business. This menu covers special coffees and teas available to them while they are in your office. A few dollars spent here is repaid 100 fold.

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Host a summer bash with food and beverages. Invite your clients on the condition that they bring the names of the three most promising business people they know.

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Refer businesses to tax consultants, lawyers and other professionals. Do not ask for a referral fee. You will receive qualified referrals from them in return.

If not make written arrangements before you start referring business.

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Diamond Protection by Tony Carlyon – In the past, we have been able to arrange insurance if your income stopped for any of the following three reasons: Death, Disability, Retirement.

Your insurance would consist of:

But now there is a fourth peril: Nasty

A nasty is a cancer, heart attack, stroke, coronary artery bypass operation or something else that may stop your income and could cost you a lot of money in medical bills; but it may not disable you beyond the waiting period on your disability income policy.

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disability income life insurance

pension funding insurance

Mahani Binti Buang

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We can now offer you critical illness policy that will give you a lump – sum tax – free payment if you suffer a specified nasty.

So now we have:

Would you like me to give you this Diamond Protection?

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disability income life insurance

pension funding insurance

Critical illness insurance

Mahani Binti Buang

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The basic purpose of critical insurance is to create cash … nothing more, nothing less. Ask: “Mr. Prospect, how much cash would you like $500,000 or $1,000,000 or $2,000,000?”

Everything else just confuses and complicated the reality.

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After an illness, you will not need more critical illness insurance but you will certainly need more money. So why not create it now?

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Mr. Prospect, you are covered for three or four major illnesses under a basic policy, but as a bonus and for a few more dollars we will throw in 22 illnesses as a comprehensive coverage (or what ever additional conditions may be covered in your jurisdiction.)

Mr. Prospect: “Which would you prefer, the basic or comprehensive?”

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Mr. Prospect, do you want to be looked after by the government if it is still able, or do you prefer to look after yourself in the event of a major illness by planning for it in advance?

“How much of your own money are you willing to set aside on a monthly basis for this planning?”

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Mr. Prospect, do you know the cost of time? A 24-year-old employee (a single mother) cancelled her annually prepaid critical illness policy and received a few hundred dollars upfront. Then she become ill, thereby losing out on the benefit of $200,000. The cost of her time in this case was $100,000 a year over the two years.

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Mr. and Mrs. Prospect, most entrepreneurs like you have been working hard for the last 15, 20 or 30 years, right? Each day, you are trading $1, $10, $100, or $1,000. After 20 or 30 years, you have traded your life for your business. It represents a lifetime of effort. What have you planned for it to continue your legacy? If you’re not protected now, you might have to sell at a fire sale, bring on unwanted partners, or close the business. Which of these choices are in your plan? I recommend a different plan that helps you avoid any of those choices by planning today at a low cost.

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Mr. Prospect, did you know that the bank or the government, might have a mortgage on your health? (They already might have a mortgage on your home.) Should you suffer poor health or financial difficulty, both the bank and the government might look to liquidate any assets to recover any and all outstanding loans or taxes. How would you like a tax or loan – recovery policy put in place today to avoid this situation?

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Marketing to physicians

Dear doctor,

As you can see, I have enclosed a cheque made payable to you for $500.*

I value your time so much that all I request from you is 15 minutes. At the end of this short appointment, if you feel that my expertise is of no assistance to you in your financial health planning, I will sign this cheque to compensate you for your time.

Please call our office to book an appointment as soon as possible.

Yours truly,

Alphonso Franco, RHU, RFC.Specialist in Financial Health Planning

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“I make sure doctors I talk to understand that they will be saving thousands of dollars.”*term and conditions apply

One word of caution: you had better know exactly what you have to say in 15 minutes that will be so valuable to the physicians that they will want to deal with you and not claim the $500. I make sure that the physicians I am talking to understand that, by dealing with me instead of making $500, they will be saving thousands of dollars.

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Critical illness insurance, it’s expensive. Not at all. Survival is the most expensive part!

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Die cheap for $100 or live with $200,000.

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Would you rather have a heart attack and lose your home … or have a heart attack, and lose your mortgage?

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Has your financial advisor shown you a way to protect your financial health if you are diagnosed with cancer, suffer a heart attack, or have a stroke?

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Your bills won’t go away when you have a cold. They certainly won’t go away when you have a stroke, heart attack or cancer.

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How would you like access to the best health care possible for $5 a day?

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Simple laws of business nature will dictate that if your clients on average earn $100,000 or $150,000 a year, chances are that will also be your average income. If your clients earn in $1 million range, chances are you will either be in the same ballpark for earnings or on your way there soon.

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Tell your prospects that there are three stages to a critical illness: ill, pill and bill.You cannot change the first two, but you can certainly help with last one.

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Give your prospective client a blank page of paper and ask him or her to write down answer to the following three questions:

1. If you had had a heart attack last night, what are the three most important things that you would want to take care of today?

(Generally, clients choose health, family and job/finances)

2. if your had been diagnosed with a life – threatening cancer last night, what are the three most important things that you would be worried about today?

3. If you had had a stroke last night, what are the three most important things in your life that you would want taken care of today?

Wait for a moment and then say to client or prospect:

“If you had a stroke last night, in reality, today you might NOT be able to talk or write down the three most important things you would want taken care of today. Do you agree?”

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“ Do you insure your car before or after a car accident?

“ Do you insure your home before or after a house fire?

“ When you are a victim and a survivor of one of these ‘nasty’ illnesses, do you need to worry about the added burden of financial crisis when you are already dealing with questions of life, death and survival?

“ Let me show you how you could be financially assured in the event of a critical illness for just dollars a day.”

When potential clients tell you they already have enough insurance, generally they are referring to life insurance. You should reply, “ Life insurance pays you on the diagnosis of death. Disability insurance pays you on the diagnosis of an ongoing disability. Critical illness insurance pays you on the diagnosis of life. It simply pays you to live. Do you have anything like that?”

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For personal need analysis, ask several questions, such as:

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Questions1. If you suffered from a heart attack, stroke or cancer today, would you want your mortgage balance to be fully paid off?2. In the event of a critical illness, would you want your credit card debt and your line of credit paid in full?3. In the event of critical illness, would you want to make sure that all your other financial obligations were met?

Total Need

Your responseIf yes, what is your mortgage balance?If yes, what is the amount that would suffice?If yes, what is the amount that would meet your need

Need• $165,000

• $10,000

• $40,000

• $215,000

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Questions1. In the event of heart attack, stroke or cancer, would you want your business loans paid off in full?2. In the event of heart attack, stroke or cancer, would you want your lines of credit to be fully paid off?3. In the event of a critical illness, what would be your obligation toward your building lease / mortgage payment?

Your responseIf yes, what would be your loan balance?If yes, what would be the amount required?

Need• $100,000

• $60,000

• $180,000

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CONTINUED

Questions4. In the event of a critical illness, what would be your obligation toward your building leased equipment payments?5. In the event of critical illness, who would be responsible for running your business? Who would pay their wages?6. In the event of a critical illness, what would be the fixed expenses for your business?

Your response

what would be the amount needed to meet your obligation?Would you like this amount to be covered?

Need• $23,000

• $120,000

• $60,000

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Questions7. In the event of a critical illness, would you want anything else covered?

Total Need

Your response Need• $40,000

• $623,000

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Some clients will ask why they need critical illness coverage when they already own life and disability insurance.Ask them, “ Would you cancel your car insurance just because you own home insurance?”

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Why do we need to protect ourselves first? If you fly even occasionally, you will know the answer. At the start of each trip, your flight attendant generally states something like this, “In the event of an emergency, a mask will drop down and you should place it over your face before helping children and others around you. “Similarly, if you don’t own a financial life line, you will be in no position to help anyone dependent upon you, including yourself. If you care about yourselves and your families, you will buy this coverage today. If your care about your clients, then at least present it to them and let them have the option to say “Yea” or “Nay.”

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When clients say they have no dependents, they’re really saying they have no one to depend on.

Ask them, “Who would feed you if you had a stroke?”

A stroke affects two people. Would the other person feel comfortable depleting all his or her assets to pay for your care giving?

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The average individual’s only liquid asset is a pension plan in some countries. Often this is the first and only source of emergency money available. What about the lost opportunity of these funds? If your funds were left to accumulate at five per cent interest over 20 years or 30 years, even a small decrease in your pension could translate into a large amount of lost savings because you had to dip into it

Let me show you a way to protect your pension for just dollars a day.

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When a client says, “It won’t happen to me,” ask question: do you know anyone who has had cancer, suffered a stroke, or had a heart attack in the last five years?

No doubt those people were surprised that it happened to them. Each person who arrives in the emergency room with heart attack wasn’t planning on being there either. Statistics offer proof that it will happen.

If it happens tomorrow, what would your financial situation be?

If you knew that you would have a heart attack in nine months, would you want this policy?

How do you know that you won’t? you can replace your car or your house, but your financial wealth will depend on your financial health. So take care of it by insuring in while you are still healthy.

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When a client says, “Now is not the right time for this,” point out, “People never get sick at the right time. It is always at the wrong time.”

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“I can tap into my pension plan borrow money. Why do I need to have an extra payment every month for this? I have no debts.”

You are interested in making money, aren’t you? The interest on the money that you borrow will be more than the premium on this policy. The tax you will pay on the withdrawal of your pension money will be more than the premium on this policy.

If a client cannot afford to insure the full need, say, “Let me pay the taxes on your pension plan when you take the money out in the event of a critical illness.”

“I don’t have the extra money for this right now.”

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Mr. and Mrs. Client, I have never found anyone with extra money; you definitely can see how difficult it is to set aside $1 or $2 a day. Now imagine when you are faced with a life – threatening illness and, coping with it, you have to come up with $100,000 or $200,000

So which would you prefer: $1 now or $100,000 later?

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“Is it really worth having this plan, financially?”

Your way, the cost is 100 per cent. My way, the cost is just 2 per cent.

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“Is this a good investment?”

Mr. and Mrs. Client, please give me two pennies. Here is dollar in exchange. Is that a good investment?

Two per cent of your wage can ensure that 5 to 10 years of your income is paid to you in a lump sum, tax – free cash payment in the event of a critical illness. Does that sound like a good investment to you?

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“I have an excellent relationship with my bank, and I can borrow money anytime. Why would I need this?”

You can buy my money for less than you can borrow it. The cost of a critical illness policy might only be two per cent for $100,000, if you are lucky enough to have a bank give you a loan in the event of a critical illness, you might be paying eight or nine per cent for the privilege of borrowing $100,000. It is your choice.

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“I don’t have time for this?”

Critical illness insurance is a contract that can create time and money. When you are diagnosed with a critical illness, my company will pay you so you can create extra time to take care of your family and your health at the same time.

You will be saving time that you would have spent worrying about family and finances.

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“Does my partner need critical illness insurance too? Can we just insure one of us?”

Life is like a seesaw. You need two people to seesaw. When 50 per cent of your team is down, your other 50 per cent will have to contribute 100 per cent.

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“I already have enough disability insurance. Why do I need critical illness insurance?”

It is easier to turn capital into income than it is to turn income into capital. If your prefer to receive money on a monthly basis, provided you have an ongoing disability, then disability insurance is your answer. If you prefer to receive a lump sum of money, even though you have survived and recovered from critical illness, then critical illness insurance is the answer.

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“Is it expensive?”

No. Considering the alternative, it is pretty cheap. Or considering that surviving a critical illness may kill you financially.

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“I cannot afford it.”

The cost can be less than two per cent of your total debts. What rate of interest are you now paying on your debts?The premium you pay for your critical illness insurance will pay off your debt when you suffer a critical illness and survive.

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