You didin't really complete your question. Even in the 'Subject' line. I understood "Insurance phobia..", but,..do you have a specific question about it.
Posted: Thu Aug 05, 2010 03:03 pm Post Subject:
What do I say to a prospect who has insurance phobia
Well, some folks just can't be won over to the concept that they're going to die. I have found that dancing around the question is the worst approach. So my presentations tend to be blunt and to the point, when necessary. But I don't beat up on people for their beliefs. I try to understand them and deal with them.
Many persons are very uncomfortable when it comes to discussing death. Even some of us Christians, who are supposed to not fear death. The fact is, most people (religion aside) understand the concept, they just don't want to have to think/talk about it now, and they sometimes say ridiculous things like, "Well, I'm never going to die!" And I usually reply with something like, "Well, it worked that way for Enoch, who rode the chariot of fire into heaven, or Elijah who just went on walking with God. But I'm not sure you'll be Methuselah II, and live for another 900 years."
I should ask, how comfortable are YOU with the thought of dying tomorrow?
It's not a matter of religion or philosophy. But understand that your own philosophy of life and death is a part of the undercurrent of your presentation. If you haven't settled that for yourself, you may have a difficult time in the business.
That's the "phobia". Talking about death for many is uncomfortable. Some people have no problem at all discussing death, but they literally stop breathing if they see a picture of a snake (I used to have a sister-in-law exactly like that [she's still breathing as far as I know]). Phobias.
Some of us agents have a great fear of rejection, and it causes us to not want to pick up the phone and make a prospecting call. Or we just can't bring ourselves to ask for a check. Or approach a stranger in public. Phobias.
As with all phobias, it has to be confronted directly. You have to make sure that you get the subject out into the open. It can provoke tears and other emotions, and you have to be prepared to deal with that (doing a presentation for LTCI can be far more emotional an experience than a life insurance presentation). Once the prospect is at least willing to admit that they know they're eventually going to die, then you can get to the heart of the matter:
How are you going to cover that event financially? Cash savings, investments, life insurance, or will you have no plan at all?
Which one makes the most sense? How quickly can you save $100,000 (or whatever amount is being discussed) on your own? How fast will a $1000 investment grow to $100,000? Is it good to have no plan?
Now let me explain why a small trade-off in terms of premium for a large death benefit probably makes the most sense . . .
And you get into the meat and potatoes of your sales presentation. It will never happen if you allow the "phobia" to remain undiscussed.
Once in the open, you may not close the sale on that occasion, either. Because now the person has to come to grips with their fear. But at least they can see it, and you both can talk about it. And you can always follow up in a month, six months, a year from now.
Here's another reality. Not everyone NEEDS life insurance. If the person is 30, single, no dependents, no one counting on them for some of their support (like an aging parent), then they may not genuinely have a need for life insurance. That's the other aspect of life insurance -- NEED. Without a need, the salesperson may persuade the prospect to make a purchase, but it probably won't last. It's one of the reasons that many life policies tend to fall off the books after about 7 years.
I can understand the concept, but if I don't have a need, why would I want to buy it? Legitimate question. Protecting one's future insurability -- one of the most common excuses agents rely on -- may be utterly unconvincing.
Posted: Sat Sep 11, 2010 12:48 pm Post Subject:
Without a need, the salesperson may persuade the prospect to make a purchase, but it probably won't last.
The sales people have to identify the prospective customer's needs in a great detail. If they fail, it will fall off the book when the customer sees through it in the long run.
Posted: Sun Sep 12, 2010 01:38 pm Post Subject:
And going back to the OP's initial comment about "insurance phobia", it's probably not a phobia about insurance, but the underlying reason for coverage -- death -- in a life insurance transaction. When people are uncomfortable about that topic, why would you expect them to be comfortable with a discussion of insurance to protect against it?
Posted: Thu Aug 05, 2010 11:30 am Post Subject:
She is single, early 30s
You didin't really complete your question. Even in the 'Subject' line. I understood "Insurance phobia..", but,..do you have a specific question about it.Posted: Thu Aug 05, 2010 03:03 pm Post Subject:
What do I say to a prospect who has insurance phobia
Well, some folks just can't be won over to the concept that they're going to die. I have found that dancing around the question is the worst approach. So my presentations tend to be blunt and to the point, when necessary. But I don't beat up on people for their beliefs. I try to understand them and deal with them.
Many persons are very uncomfortable when it comes to discussing death. Even some of us Christians, who are supposed to not fear death. The fact is, most people (religion aside) understand the concept, they just don't want to have to think/talk about it now, and they sometimes say ridiculous things like, "Well, I'm never going to die!" And I usually reply with something like, "Well, it worked that way for Enoch, who rode the chariot of fire into heaven, or Elijah who just went on walking with God. But I'm not sure you'll be Methuselah II, and live for another 900 years."
I should ask, how comfortable are YOU with the thought of dying tomorrow?
It's not a matter of religion or philosophy. But understand that your own philosophy of life and death is a part of the undercurrent of your presentation. If you haven't settled that for yourself, you may have a difficult time in the business.
That's the "phobia". Talking about death for many is uncomfortable. Some people have no problem at all discussing death, but they literally stop breathing if they see a picture of a snake (I used to have a sister-in-law exactly like that [she's still breathing as far as I know]). Phobias.
Some of us agents have a great fear of rejection, and it causes us to not want to pick up the phone and make a prospecting call. Or we just can't bring ourselves to ask for a check. Or approach a stranger in public. Phobias.
As with all phobias, it has to be confronted directly. You have to make sure that you get the subject out into the open. It can provoke tears and other emotions, and you have to be prepared to deal with that (doing a presentation for LTCI can be far more emotional an experience than a life insurance presentation). Once the prospect is at least willing to admit that they know they're eventually going to die, then you can get to the heart of the matter:
How are you going to cover that event financially? Cash savings, investments, life insurance, or will you have no plan at all?
Which one makes the most sense? How quickly can you save $100,000 (or whatever amount is being discussed) on your own? How fast will a $1000 investment grow to $100,000? Is it good to have no plan?
Now let me explain why a small trade-off in terms of premium for a large death benefit probably makes the most sense . . .
And you get into the meat and potatoes of your sales presentation. It will never happen if you allow the "phobia" to remain undiscussed.
Once in the open, you may not close the sale on that occasion, either. Because now the person has to come to grips with their fear. But at least they can see it, and you both can talk about it. And you can always follow up in a month, six months, a year from now.
Here's another reality. Not everyone NEEDS life insurance. If the person is 30, single, no dependents, no one counting on them for some of their support (like an aging parent), then they may not genuinely have a need for life insurance. That's the other aspect of life insurance -- NEED. Without a need, the salesperson may persuade the prospect to make a purchase, but it probably won't last. It's one of the reasons that many life policies tend to fall off the books after about 7 years.
I can understand the concept, but if I don't have a need, why would I want to buy it? Legitimate question. Protecting one's future insurability -- one of the most common excuses agents rely on -- may be utterly unconvincing.
Posted: Sat Sep 11, 2010 12:48 pm Post Subject:
Without a need, the salesperson may persuade the prospect to make a purchase, but it probably won't last.
The sales people have to identify the prospective customer's needs in a great detail. If they fail, it will fall off the book when the customer sees through it in the long run.
Posted: Sun Sep 12, 2010 01:38 pm Post Subject:
And going back to the OP's initial comment about "insurance phobia", it's probably not a phobia about insurance, but the underlying reason for coverage -- death -- in a life insurance transaction. When people are uncomfortable about that topic, why would you expect them to be comfortable with a discussion of insurance to protect against it?
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