Get Clients Emotionally Involved To Take Action On Insurance
Kansas City, Mo.
In order to better serve prospects and clients, its important that agents get people emotionally involved in the decision to take action regarding their life insurance and annuity holdings, according to Van Mueller, a registered representative with New England Financial in Milwaukee, Wis.
Speaking during a breakout session at this years National Association of Insurance and Financial Advisors annual meeting, Mueller said there is a paradigm shift that agents need to explain to their clients before getting started in their sales presentation.
Agents need to help clients understand that in the future the government will not be able to care for the elderly, he said. Currently, there are approximately 38 million older people collecting Social Security. Considering the almost 80 million baby boomers and the 41 million GenXers, there are over 120 million people paying to support those 38 million collecting Social Security.
The country is headed for a crisis, he said. “Do the math.”
Looking ahead 10 years when the baby boomers start retiring, he said that if you assume half of the 38 million that currently are collecting Social Security are still alive, there will be about 100 million people getting Social Security. Adding the echo boomer generation, estimated at 74 million, to the GenXers, results in 150 million taxpayers paying to take care of 100 million people, he said.
“There will be higher taxes and lower benefits coming soon to a country near you,” he said. “This is going to be a huge problem and you need to start talking to clients about it.”
Making this situation even more difficult is the fact that people are living longer than ever before, he explained.
Mueller said the products insurance agents offer can help solve all these problems for their clients. “Youre the only people that can create money from nothing.”
Mueller shared a number of ideas during the session. “I take two fact finders,” he said. “I take an emotional fact finder and a factual fact finder.”
The emotional fact finder only has four questions. Mueller uses this with clients to help him understand what they want to do, but more importantly, it helps his clients realize what needs to be done to meet their goals.
The first question he asks on his emotional fact finder is, “What do you want to happen when you die?”
A discussion typically ensues that addresses follow-up questions such as: Do you want the kids to go to the same school? Do you want your spouse to go back to work? What do you want to happen to your business?
The next question he asks is, “What do you want to happen when you become disabled?” People usually dont feel they will become disabled, he said, but “statistically, almost everyone in America becomes disabled for some period of time, and some for a long period of time.” Mueller asks people to tell him everything they would want to happen if they couldnt work for one or two years.