When prospecting for term business, a lot of producers focus on family sales. They look for young, middle-income families who usually have one financial planning objective in mind — to buy life insurance as cheaply as possible. There’s no doubt term insurance fits that bill. But when prospecting for term business, don’t forget to look upscale — to the small-business owner.

Whether they recently have started a business or are third-generation entrepreneurs, small-business owners work hard to build and maintain their business. They don’t want to leave it, their family, or their staff unprotected. They also have multiple financial planning needs — collateral for a bank loan, funding for a buy-sell agreement, coverage for key people, and so forth. For all these needs, life insurance can meet the objective.

Why term? As we all know, term insurance gives the most protection for the least amount of money — it’s the most economical coverage prospects can buy. That’s especially important to the small-business owner who is trying to manage and protect so many interests, including his family, his employees and his company. The young business owner of today may well become the upscale, successful entrepreneur of tomorrow. Therefore, it’s critical to show a prospect that term can offer him much more than low-cost protection. It offers convertibility, which can be an essential part of his long-term financial plan.

Editor’s Note: The preceding tip was taken from “Term insurance for upscale and business clients,” by Mark Batzel, which ran in the January 2004 issue of Life Insurance Selling. Click here to read the entire article.

To read last week’s Tip of the Week, click here.

For more on term life, see:

Better Prospecting: Term life: A door-opening relationship-builder

Term life insurance: A proposition of value

6 steps to term life sales