Insurance Sales Tips

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Replacing a spouses social security income.

insurance sales tips like this one can help you make a lot of money. 

The premise of this sale is based on the fact that when a couple retires and starts collecting their social security, their current life style and future lifestyle are dependent on both checks.

Objective: Replacing the loss of a partners Social Security Retirement income check.

This unique insurance sales tip and it concept is rarely used or made known.

Providing money ($$$$) to offset the loss of a spouses/partners Social Security check in Retirement years:

Your target market would be: people approaching retirement, age 55 to 65

How to Market: When approaching people on Medicare supplements, visiting about IRA’s and retirement planning, as well as Annuity marketing.

What to sell: Possibly a mortgage payoff policy, an income offset policy to cover about 60% of social security lost income for about a 7 year period. Creating an emergency fund to draw on.

Just to reiterate, the premise of this sale is based on the fact that when a couple retires and starts collecting their social security, their current life style and the future lifestyle are dependent on both checks.

Just like a young couple in today’s economy where both the husband and wife are working and their lifestyle is built around both paychecks. 

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What is the message we are trying to convey?

Many couples plan their retirement around the earliest time they can start receiving their social security checks. In many cases you have the husband and wife (or sometimes two people who may have decided to live and enjoy life together.) They base their household budget on the assumption of these two checks continuing to come in. However, the statistics show that more than ½ of them will loose a spouse/partner before 65.

When I was personally selling, I used an income stream showing what will happen when a couple retires and usually included both social security checks in addition to any other income sources. This then would usually show a respectable income at retirement.

However, I learned something when I lost my beautiful wife to cancer at the age of 57. The retirement income plan that I put together for our retirement was impacted by her loss, and quite honestly, I never ever thought about this loss of income.

This amounted to a significant amount of money each month. For a lot of other people, this could be disastrous and could result in the surviving spouse having to sell their home, because of the not being able to pay property taxes, insurance and maintenance on the house. And if there was still any type of mortgage, it would be even worse.

The results of loosing anywhere from $700 per month on up, will and can have serious effect on the survivor.

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Lets look at an example of the problem !

Let’s say John Doe receives $1233 month from S.S and Mrs. John Doe receives Half ($616 per month) based on John Doe’s benefits, and even more if she worked during her lifetime.

In this example of our insurance sales tips, that total amount comes adds up to $1849 per month just in Social Security benefits. Life is okay, they can get by, they may have enough money to do some things, etc.

But let’s say one of the spouses die. What is the impact here? (You will need to read up on Social security retirement benefits to get a better feel. It is not that complicated to figure out.)

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So how does this impact the survivor ?

Let’s say that like many couples they do not have a lot in savings?

Furthermore they probably dropped one or two of their life insurance, policies. Their mindset was “we don’t need life insurance anymore; we are retired and have no kids, mortgage, etc.”

I have seen many retirement couples drop insurance and revise their life insurance program on the basis that no one is going to die and assuming that their income stream will continue. Bad Idea.

In fact, when I was selling insurance and of all the Financial Needs analysis programs I done for people, I never considered this loss of income issue.

WHY? because no where in my training was this sales opportunity ever discussed. 

Have you ever had this issue discussed in any training schools? Has anyone ever told you to share this concern with newly retired couples?

This in only one of the many insurance sales tips on my website. 

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What can we do to help your client or the prospect ?

Show the prospects why they need to create an income or emergency fund.

Remember, A life insurance policy is a form of delivering money. Cash when it may be needed the most. You are selling real money. You are creating piece of mind.

In this analogy, upon the death of a partner or spouse, the survivor’s financial apple cart all of a sudden is turned upside down. What was a somewhat manageable and somewhat comfortable financial situation all of a sudden can become a nightmare. Especially if they still had a mortgage payment, and it even gets worse as property taxes, insurance, food, medical costs, etc continues to climb in today’s economy.

The survivor all of sudden joins the poverty roles, food stamp line, etc. This at a time in their life when they should be enjoying what years they have left. They are emotionally impacted.

So my insurance sales tip for you is to put together a sales presentation based on this concept and fund it with a permanent life insurance policy.

When people retire, there are many issues they totally overlook, such as the monthly cost for Medicare, Medicare supplement policies, nursing home policy premiums, medicine, inflation, property taxes, car and auto insurance, etc.

Many people that own term life insurance usually end up dropping it at retirement or have it run out at 65 or sooner, which is a big mistake.

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Here are some Sales Idea's for this Concept...…

I would look at converting some of their term insurance they may have over to a permanent cash value policy, so that it covers one of these key areas:

1. Replacement of loss income. Decide on an amount.

2. Discuss a final expenses or burial policy.

3. Possible mortgage cancellation policy

4. An emergency fund policy to create a emergency fund to draw on for tax’s, Medicare Insurance payments, medicine, and other self maintenance concerns, etc.

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Remember these insurance sales tips:

Always sell a concept and use word pictures. And learn to use the following phrase to open up a discussion or sell an appointment:

"Mr./ Mrs. Prospect I would like to share an idea with you that many people have overlooked when it comes to retirement/education/estate planning/etc."

Learn and Earn

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