Be Creative In Identifying Group Life Prospects
By Alice Rathburn, Mark Sylvester and Marc Warrington
Life insurance is like money in the bank. Almost everybody has some. Almost nobody has enough. What you have, you probably got from your job. And that can be the most sensible and reliable place to go back for more.
In a nutshell, that is the essence of the life insurance situation for most working Americans, and it is the essence of a sound selling proposition for pitching voluntary group life insurance to employer prospects.
The situation is so pervasive that it is tempting to forget the idea of selectivity when it comes to identifying prospects for group life insurance. Chances are that the employees of a group insurance customer or a prospect already have some life insurance as an employee benefit, and chances are that this coverage is insufficient for the employees needs.
Still, some prospects are better than others. At the base, any case with 50 or more lives and a low employer-paid death benefit can qualify as a good prospect. Generally, a low death benefit would be a policy that is equal to the employees annual salary, up to $50,000.
Of course, the best place to find prospects can be an existing book of business. Its no secret that expanding business with a current customer is a lot more profitable and efficient than developing a new customer from scratch. Look for gaps in current portfolios. If a company has a low life benefit for employees and the employees have many dependents, for example, those employees are excellent prospects.
But what next? Here is one prospect-identification protocol to consider.
First, consider access. Agents or brokers who can get to employees should be able to get them to buy. Look at how the employees are spread out. If there are 150 employees in one building on one shift, youve got more efficient access than if there are 150 employees on two shifts at three different locations.
Next, approach companies that others may avoid, such as a company with a high percentage of female workers. Many women may see the workplace as an opportunity to purchase affordable life insurance coverage on themselves and their spouses.
Perhaps the couple has agreed that more coverage is necessary but have procrastinated on making the purchase. Best of all for the agent, since the employee must first buy group life insurance on herself before she can buy coverage on her spouse, the result is a prime opportunity for a double sale.
Next, look for growing companies. Despite the economy, there are companies that are growing. Scan local business media for positive news about companies that have discovered new markets, won new contracts and added new clients. Scan the classifieds and visit job fairs to see who is hiring.
Growing companies that need additional employees also need to put some extra effort into keeping their current workers. A great way to help recruit and retain employees is by sweetening the employee benefits pot.
Often, growing companies will want a broader package of benefits than just life insurance alone. Thats fine, because additional life insurance is a key component of a package designed to provide a comprehensive benefits solution.