Many clients realize they need life insurance. In fact, 70 percent of women and 62 percent of men believe that life insurance is a necessity and that all adults should have it, according to research by LIMRA. But if people think it’s so valuable, why do so many prospects postpone the purchase?
One factor is the “two birds in the bush” syndrome.
In other words, your clients already have a good offer, probably a nice policy that you drew up for them – a “bird in the hand.” But they want to hold off for that distant time in the future, when they imagine paying much less for the same coverage – the “two birds in the bush.”
Smokers plan to quit. Those with high BMIs hope to shed a few pounds. Diabetics want better results on their next blood test. Mountain climbers hope to get their next trip out of the way.
But this strategy ignores the fact that there are many other factors that your clients cannot control. Other new risk factors could emerge during the same time it would take to quit smoking, obtain a better A1C, lose weight, or climb a mountain.
For example, the client could develop another medical condition. They could find a new and better job, but with concomitant foreign travel. They could injure themselves on that mountain climb, and wind up with a chronic condition which will affect their rate.
Indeed, life can resemble a Whack-a-Mole game, where you knock down one pesky risk factor, only to find others popping up elsewhere.
So what’s a life insurance agent to do? Tell your clients: the time is always now.
In my years in the life business, I have seen insurability change in an instant, often due to factors beyond my client’s control. This is why I tell every one of them, “The time to buy life insurance is always now.” Get the best rate available, now. Buy as much coverage, with the longest guarantee period, that you can afford, now. You never know what tomorrow will bring.
And if your client does succeed in becoming more insurable in the future, they can always shop around again for a better rate. At least they will have solid coverage in place in the meantime, in case they become less insurable.
Steven H. Kobrin is an independent life insurance broker and nationally recognized expert in field underwriting for people considered high risk. He can be reached at (866) 633-1818 or [email protected]