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So Difficult About Selling Life Insurance?
Written By John Lensi, CLU, ChFC, RHU, REBC, CMFC, LLIF
and Ted wolk, website author
Life insurance referrals come from mastering the art of a referred lead presentation. But before
a producer develops a referred
presentation, he or she would benefit from
the reasons why
do not furnish life insurance referrals
to life insurance producers. Knowing this,
allows a producer to adapt a
referred lead presentation to address these consumer concerns.
But before we look at some of these reasons, and please note that I am referring to a “referred lead presentation”, we need to review some of the basics.
Obtaining qualified referrals isn’t simply a matter of just asking for some names of people your clients know in some haphazard fashion.
Research into why consumers do not provide life
insurance referrals can be summarized
into four primary reasons:
But the number one biggest reason agents don't get referrals is that they do not have a dynamite referred lead presentation (sales Talk) that works.
There are of course a number
referred lead presentations
this industry makes available to get life insurance referrals. Here are two proven and tested formats.
The first one is from www.an-insurance-agents-career.com and it is called the Referred Lead Card System. This presentation includes a method to get referrals even if prospect does not buy.
The second one I’ll share with you is below; perhaps it may be of some help to those who are in need of structure for a referred lead presentation
one – first seal off the sales interview before starting
referred lead presentation to make sure the sales interview is
completed in the mind
of the client. (“Amy, are there any other questions I can address about
Step two – congratulate the client on the wise decision they made to protect their family - or whatever the basis of the sale was.
(“Amy, I’d like to congratulate you on the wise decision you’ve made to protect the future of your family…”)
Step three – Explain how you plan to meet with the client on a regular basis.
“Amy, I’d like to explain how I work with new clients like
meet with them on a regular basis – generally annually – to make sure
continue to understand their insurance protection and to make sure
are being met…”
Step four – Explain how you work and that you would like their help.
(“Also, allow me to explain how I have been able to develop a clientele
in my profession. Generally I’ve found people like yourself who are
with the work I have completed for them refer me to others that I may
Step five – Reference back to the analysis you completed.
(“As I have done for you, I have found most people are unclear of their
insurance needs and whether they have appropriate and adequate
they have a personalized confidential financial
needs analysis done for
Step six - Paint the picture of the client profile you desire to be referred to and how you
(“Amy, before you would be kind enough to refer me to someone I may be able to help, I want you to be comfortable about a couple items:
Step seven – Provide a compliance approved referral brochure for your client to record life insurance referrals, and if appropriate, write a personal note of recommendation (provide pen also ... and if you are addressing more than one person, provide a pen and referral brochure to each of them).
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producers strive to penetrate the more upscale market, which in
turn has the potential for greater financial rewards for the producer.
segment of the marketplace has more disposable income and multiple
but is small, sophisticated, harder to access, and decisive.
Upscale asset holders do not respond well to mass marketing techniques, cold calls, mass mailings, or generic seminars. This market is more difficult to penetrate and generally the best method for penetration is through referral marketing to generate life insurance referrals.
Of further interest is the psycho graphics of the upscale market vs. the bottom segment relative buying financial services products. The upscale consumer generally takes a more logical and analytical approach to buying, whereas the lower asset held end of the market tends to buy more on emotion.
What can be drawn from this is the need to absolutely conduct a through and effective fact-finder with the more affluent consumer to more accurately analyze their multiple financial needs. This is one reason why financial planning has a high success rate within the upscale market.
Earlier in these articles I said I would
both producer “fix”
and control issues. The “fix”
element has been addressed
through suggesting a proper
referred lead prospecting presentation. The “control issue” is probably
as earning a producers business.
Here we circle back to mostly home office controlled issues that fall outside of the control of the producer (although a catch 22 situation). Control issues include among others: compensation package – including HR related benefits; carrier product competitiveness; ease of doing business; efficiency of processing both new and post issue applications; underwriting flexibility; software and advanced marketing support; home office and field management support; sales incentives; marketing support; and carrier financial stability and reputation. Of course I’m referencing the complete package of earning producer loyalty.
This is a huge area and beyond the scope of this paper, but I did want to at least bring recognition to this important issue.
Often I think of ranking some of the most important jobs in America in
order of importance to society. I’m not actually sure where life
people would rank. I’m confident surgeons, medical research scientists,
teachers would make the top of the list, but
close to the top in
society would be the value of the life insurance sales professional.
Few occupations contribute to the overall good of society as these professionals do. They have a difficult job and are undervalued in their importance they bear to protecting the financial dreams of families when a tragedy occurs.
I have sincere appreciation and respect to everyone making a living by protecting the dreams of tomorrow through the sale of life insurance and financial services products.
I hope some of my thoughts through out these articles will be of help to those who make a living selling life insurance by enabling producer’s to become more efficient in their day to day sales activities. For those who aren’t in a direct sales role, my desire is to at least provide a better understanding of the challenges inherent in selling life insurance.
Lensi, CLU, ChFC, RHU, REBC, CMFC,
Learn and Earn - We also hope that this bonus article on life insurance referrals will help those in need of developing a good prospecting system. Too see more articles on how to sell insurance, go to the life insurance help library.
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