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How to sell more cash value life insurance

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There are many reasons why some insurance agents struggle with selling cash value life insurance.

Here are just two of the reasons I’ve discovered from talking to some of them.

They have fallen prey to the ‘buy term and invest the difference’ myth!

There is so much negative publicity out there about cash value life insurance that most agents are afraid to even try to sell anything but term insurance. Mainly, it’s because they don’t know how to overcome prospect confusion about the validity of cash value life insurance. And yet there is a simple solution. The fact is that most good life insurance companies have illustration software that will compare their products, and it clearly shows that cash value life insurance is a much better buy. Do the comparisons for yourself and become a believer.

Related: Debunked: Dave Ramsey’s cash value life insurance advice

They don’t understand how cash value life insurance really works and how their prospects will truly benefit by owning it.

Most agents who are trying to sell cash value life insurance, don’t really understand…

        • The incredible power of tax deferral.
        • How cash value life insurance can provide a tax-free income in retirement.
        • That because of the disability waiver of premiums and the death benefit, cash value life insurance is the only self-completing college funding and/or supplemental retirement savings plan!
        • It’s creditor proof.
        • It doesn’t count as an asset when you apply for college financial aide.
        • By over funding a cash value life insurance policy, up to the MEC guidelines, it can become “investment grade life insurance.”

These are just a few of the outstanding benefits that make cash value life insurance a very unique savings vehicle and an exceptional buy!

To truly and earnestly sell a product, including life insurance, it's important to own it yourself. (Photo: iStock)To truly and earnestly sell a product, including life insurance, it’s important to own it yourself. (Photo: iStock)

The most amazing part of all this is that the majority of agents who are trying to sell cash value insurance don’t believe in it enough to own it themselves.

They have all the same objections that their prospects have to buying cash value life insurance. How can you sell something you don’t really believe in and own yourself? If you want to sell cash value life insurance, then do your homework. Learn everything you can about cash value life insurance. Become a believer… and then buy it yourself!

There is, however, one objection that almost every agent routinely gets from his or her prospects that stops them dead in their tracks.

Overcoming the most common objection

While the above are a few of the major reasons why so many agents struggle with selling cash value life insurance, they are not the primary reason: “I can’t afford it!”

The problem is that most sales people just expect their prospects to somehow come up with the additional money needed to buy their product or service. However, if the prospect is like most people today, aren’t they just barely making it financially? Aren’t most people today just a paycheck away from financial disaster? So, in effect aren’t most salespeople asking their prospects to make a very difficult decision? ‘What do I have to sacrifice in order to purchase your product or service?’

If you want your prospects to buy your products or services, then you must help them to ‘Find the Money.’ Help people to reallocate their dollars, to get what they need, without them making huge sacrifices and/or changing their current lifestyle.

Where can you find the money, so that your prospects can afford to buy cash value life insurance?

        • How about raising the deductibles and waiting periods on their current insurance policies?
        • How about removing unnecessary and/or expensive riders or maybe canceling unneeded policies?
        • Can free up money by refinancing their home and lowering their monthly mortgage payments?
        • Can they take equity out of their home to eliminate credit card debt or an auto loan, to free up those payments?
        • Could they reallocate payments currently going into qualified retirement plans, college funding vehicles, etc.?

It all boils down to helping your prospects to set better financial priorities.

Do you want to help people to ‘find the money’ to save more for their retirement, fund their children’s college education, pay off their home early and reduce or eliminate debt, all while reducing their income taxes and protecting their family? The answer is cash value life insurance?

Editor’s Note: A version of this essay first published in the author’s own blog.

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