1. Simple Tips for Success
– Show up 5 minutes early. Always dress appropriately. Discuss what the client wants to talk, not just what you want to talk.
2. Lose your mortgage
– Sells critical illness coverage to the level and term of their mortgage.
– If you or your partner became critically ill, unable to work and could not afford to pay your monthly mortgage payments, would you prefer to lose your home or lose your mortgage?
3. Winners make commitments
– Write down your goals. A goal reduced to writing becomes a reality.
4. Benefits of a Personal Assistant
– Let your assistant call to make the second appointment with your prospects.
5. Pro Package
– At the end of first interview, you can offer to show your insurance portfolio, that gives appointment for second interview.
6. On their to-do list
-Have a financial to-do list for clients example short term assets (access to cash/liquidity), medium-term assets (investment with a 3-8 years time horizon)
7. Long-term care insurance
– Client said family will take care of them hence no need long term care insurance. Pull out a grid that list 3 hour shifts along the top and the days of the week along the side. I then ask them to fill out the grid with the name of who will care for them during each shift. People often forget family members drive, work and have other obligations.
8. “I love you” card
A life insurance contract is nothing more than an “I love you” card. The card has a “I love you” outside, inside is blank. Ask the policyholder to complete the card, say that if one day I end up delivering a cheque to the beneficiary, I will also give the card to them. After they have completed card, go over the contract and ask for the cheque.
9. A warm welcome
I send flowers to my clients who had a new baby. New mothers went through nine months of pregnancy and the not-so-easy experience of childbirth.
10. Young Man – Old Man
If prospect is in mid 40s – 50s declare that he only want to buy term insurance because he will only need the protection until he retires. Example if you are to go to 23 year old son and ask him to choose between $500,000 in cash or $500,000 life insurance policy, which one would he likely pick? Yes, he’s likely to pick the cash. He sees himself spend the cash on fast cars and other consumables.
On the other hand, if we are to ask your 82 year old, which one he will pick. We will probably get a different answer. He might ask us how big the dividend is on the life insurance, and how much interest income etc. The difference is that your dad thinks what I call “legacy thoughts”, he doesn’t see the principal as being his-that’s for his heirs.
11. Never criticize
It was the policy owner who made the final decision to buy. Do not criticize.
12. 8 Tips to success
A revolutionary old practice management plan :
1. Plan my day the night before.
2. Start early 8 am and stay late 7 pm.
3. Make a minimum of six pre-approaches to qualified prospects a day to schedule a future appointment.
4. Have a minimum of two selling or fact-finding appointments a day (five days a week)
5. Secure a minimum of 6 referrals a day.
6. Study a minimum of 1 hour a day.
7. At the end of the day (before leaving the office or while driving home), make one more call.
8. Work a minimum of 200 days a year.
13. Safe as houses
In the current economic climate, the general public has a desire to feel safe. Financial protection is one way to make us feel safe. By selling financial protection to our clients, we are helping them feel safer by protecting them and their families in the event of disability, critical illness or death.
14. Legacy Lock Box
Do you have clients who love their kids and grandkids? Here is a great way to explain a generation-skipping trust and make a sale by funding it with life insurance.
1. Living expenses – The bottom level of the pyramid represents the capital and income required to cover all of their fixed and variable expenses. (i.e what is needed each year to live comfortably)
2. Future savings – The next level up represents the capital and income required for future savings that is allocated for cost-of-living increases and health care expenses. (this is a great time to discuss long term care planning)
3. Emergency – The next level represents the amount of capital that is needed to plan for the unexpected emergencies in life. (This is a subjective number but I will like to use one or two years of annual expenses)
4. Excess – The top level represents the excess capital and income available for gifting and legacy purposes.
Step 2 : Present the legacy box
Would you be interested in creating a financial program from the excess capital and income you have identified that would provide a competitive rate of return and the following layers of protection :
If the maximum that you can transfer in this box was a one time gift of $1 million or $13,000 per year, how much of your excess capital would you like to protect?
The answer to this question is the amount of premium and your sale!
15. Growing your assets
I have been doing a great deal of work with people who are just now retiring, or who have been retired for some time (say 2-5 years)
If they $100,000 and purchase a $6000 annual annuity income that they cannot outlive and they have zero investment risk. Locking in fixed income will help eliminate the fear that retirees have that they will outlive their money.
16. Integrate an agenda
When I meet prospects, I always try to use an agenda to help manage expectations of the meeting and stay focused. My agenda includes :
– Introduce the company I work and a little bit of myself. I will like to give them an idea of the work I do for my clients. I tell the prospect that to help them understand their financial needs and situation better, I need to gather information on their financial position and goals. My analysis can only be as accurate as the information they provide, so as to gently suggest to them it is important to be detailed so we minimize gaps.
* The work I do
With as much information that they are able to provide, I then go back and analyse their situation, taking into consideration their needs, goals and concerns, and then come back to give them a snapshot of their financial position.
The analysis could turn out two ways – either it will give them the peace of mind to confirm that whatever they have put into place is on track, or we would discover that they have gaps, in which case, I would bring these to their attention. I make recommendations on the available options to fill these gaps and, hopefully, add value and help them make a decision in their best interest to achieve their financial goals.
I conclude the cycle by suggesting that most of my clients are not able to fully achieve their financial goals in one plan, and our financial situation can change over time. As such, it is important to review this regularly every one to two years so that they can stay on track towards achieving their financial goals.
I also refer to the last point on recommendation to ask for referrals. I tell the prospect that in this business I get paid in two ways : through the business I do with my clients and, if I do a good enough job of demonstrating my professional expertise, the referrals I get to share my knowledge with other people who might need my services.
17. Addressing the Question
The way to develop a relationship with a prospect or client is not to sell a product or strategy, but to find a solution to their underlying question and/or fears. As long as you answer the question that concerns the prospect, they will become your client. The product or strategy is secondary, so long as it solves their problem and deals with their question.
18. The Golden Egg
When you begin a conversation about income protection, gather some props :
1. Buy a stuffed animal that is goose.
2. Buy some wooden eggs at a craft store and spray paint with gold.
If you had a goose that laid a golden egg each day, which would you insure, the goose or the eggs?
Of course, they answer “the goose.”
I smile and hold up my goose and say , “You are a goose, I am a goose.” This almost always gets the prospect to smile and laugh.
Once they relax, I can go into a bit more detail of how we protect their income with Job A or Job B. Job A is their current income while working and provides no income if they are too sick or too hurt to work. Job B is their current income, less the annual premium for the disability insurance. If they are too sick or too hurt to work, then the income is whatever the new disability insurance policy will cover on an annual basis.
19. Value your life and assets
Your home is insured for 100% of its value and so are your cars and jewellery.
You are 45 years old and will retire in 20 years. You are earning $80,000 per year, and if you never get a raise, that totals $1.6 million. You are a money-making machine, yet with the $100,000 of group life insurance you have, you’ve insured your money making machine for only 6% of its value.