Friday, September 18, 2020

The Courageous Conversation About Life Insurance

Last week I had lunch with an old friend who also happens to be a client of  mine. He has been very successful working in the computer industry for about 20 years but is starting to get restless. Apparently his work has become, in his opinion, very boring. I asked him to tell me what he liked and didn't like about the work. "I do the work, I get paid, and then I have to put in a bid again to do the work again," he said. 

He began to "pull back the curtain" about his job and tell more details about who his clients were, how he acquired them and what he was paid for his time. Then he threw me for a loop and said, "So give me some of the secrets of your work."

Actually, there are not a lot of secrets. I try to keep everything as transparent as possible. My friend did not looked convinced. He said, "Do you use a bunch of high pressure sales techniques?" 

"All the time but apparently they are too subtle for people to pick up on," I said, laughing at the absurdity of it all. There was a time when life insurance agents had a reputation for being "high pressure". My first job in the business, selling accident plans door-to-door, was like that. We were trained to be like attack dogs, not to take "no" for an answer. If someone gave us an objection we had a binder full of memorized rebuttals throw back at them. 

As I have mentioned in an earlier post, I have replaced high pressure sales with "good pressure" sales. That means that I want to do what is right for a client, but sometimes, the client doesn't understand what is in their best interest. 

For example, let's say I am in the home of a young couple who has a couple of kids and a mortgage. One spouse may insist that they only need $100,000 of coverage but I think they definitely need more. That $100,000 won't cover the balance of the mortgage, much less cover other things, like funeral costs, replacing income and paying off cars and credit card debt. My job is to make those items part of the discussion. 

The reasons why the client is resistant to increase the amount can vary, but it usually comes down to cost. That's when I realize I have not done my job correctly because I haven't explained the value of my product in a way that this client can appreciate. 

"So if your spouse is stuck with less money than they need to keep the family in their home they love, has to take a second job, and has to go into debt to bury you, is that something you're okay with?" I ask, making sure the spouse is present. Is that "high pressure"? I don't think so. It's a reality check. In the business we call that a "courageous conversation" because most people don't know, or want to know, what really is going to happen when they die. 

As a professional insurance agent, I have to help them face the reality of the situation. There is no yelling or subliminal messages going on. My intentions are good in that I want this family to feel secure. I realize they may have a budget, and I can work with that. "Let's put it like this. If you purchase this coverage and died next week, your spouse will come to me and ask me, 'Will my family be okay?' What do you want me to tell them?" 

That's what my job is all about.


Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

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