The chief function of life insurance is to pay for a person’s final expenses. Some of the money paid to a beneficiary is used to meet current financial obligations created by the insured’s death. The remainder of the money may also be used to meet future needs of the insured’s beneficiary or beneficiaries. Totaling the amounts required to pay for current and future expenses is often referred to as the ‘total needs approach’ to determine how much life insurance a person should carry.
1: Final Expenses Funerals cost money. So do doctors, the ambulance, and the hospital, where a stay before death could cause a bill. Income, estate, and inheritance taxes, (because they resulted from death) make up what could be called ‘Death Taxes.’
When a breadwinner dies, dependent family members may still have other financial needs for: 2: Income Replacement Replacing the breadwinner’s income. 3: Mortgage Protection Taking care of the outstanding mortgage loan on the house (if any). 4: College Education Protection Allow for funds designated to help pay for college expenses of the children if the primary insured has died.
No matter how many of these obligations an individual leaves behind, there’s only one thing that will satisfy them … money! For this reason, a person who wants to relieve the family of obligations when he or she dies will plan to leave them with an estate or money that’s sufficient to cover all needs.
If Jim dies today, his family would need money for: NeedAmount Final Expense$30,000 Income for 3 years$175,000 Mortgage Balance$200,000 College Cost for 2 children$155,000 Total Cost$560,000
ObligationsNeedAssets Final Expense$30,000$0 Income Replacement$175,000$200,000 existing term Mortgage Balance$200,000$0 College Education$200,000$0 Total$560,000$200,000 Additional Total Need for Insurance$360,000 Need for Whole Life Insurance$30,000 Need for Term Life Insurance$330,000
You make your money when you book an appointment; you just pick it up when you are in the field. Call night is one of the most important times of the week for an Agent.
What’s an appointment worth? Assume you earn $80/AP per appointment (your weekly AP/the number of appointments). AP/Appointment$80 Commission 60%$48 Direct Pay 60%$28.80 Bonus (20%)$16 Total income per Appointment $44.8o
There are two key parts to effectively book an appointment: 1. Avoid a “No” answer on the phone 2. Always appear very busy
Fact Finding When you use the script, you will achieve both goals. The script asks: “What time do you get home tomorrow?” ▪ The client says 5pm. “And what time does your spouse get home?” ▪ The client says 6pm. You now know they will both be home tomorrow after 6pm! Now simply follow the script: “I’ll tell you what I’ll do. I’ll see you and your spouse tomorrow between 7 and 8pm.” You know they are both home, so it is difficult for them to actually say no to you.
Compare that with an improper booking technique: “I’ll be in your area tomorrow, would morning or afternoon be better?” ▪ What is the client going to say? NEITHER! “Would 3pm or 5pm be better?” ▪ What is the client going to say? NEITHER! “Well I’m in the area Wednesday and Friday, are either of those any better?” ▪ Now you have no sense of urgency and sound like you are not busy. No one wants to do business with someone who is not busy. You have to fact find FIRST to minimize the chances of hearing no on the phone.
Using your scripts, role-play these scenarios: Referral appointment Child Safe appointment Policy Owner appointment Spouse answers the phone Cancer Rider appointment Objections: ▪ “It’s impossible to catch us together.” ▪ “Why does my spouse have to be here?” ▪ “You need to speak to my spouse about this, can you call back?”