For Young Families: Convertible Term

In a recent LIMRA study, more that 40% of Americans have no life insurance.  Young families constitute a large number of those Americans.  As a licensed insurance professional, you have the tools to provide the one financial vehicle that will provide an income-tax free lump some of money to the family in the event of death.  In these economic times, young families are very focused on keeping fixed expenses down.  Insurance is a fixed expense.  Is there a way to provide the insurance they need at an affordable price?

Yes. A well-designed term life policy with the ability to convert during the entire level premium period provides just that. Adding the low cost disability waiver of premium helps insure that the policy will stay in force during a long recovery period from serious illness or accident.

The VALUE POSITION

• Avoid “insurance-speak“.  In a recent seminar given  primarily to a young adult audience, one attendee asked “What’s the benefit in death”?
• Young families think “monthly“. In fact, they often live “month-to-month”. Talk about monthly costs and fixed expenses.
• Avoid showing illustrations. An illustration can be overwhelming and misunderstood.Rather, knowing what you know from good fact-finding and about underwriting, give a ralistic range of possible costs.
• Include a true story.  Story-telling is a powerful sales tool.  If you know of a young couple that suffered an extreme financial loss due to the death of a husband or single mother in an accident or serious illness, briefly relate that story.
• Explain underwriting in simple terms and why it is important.  Have a list of exam preparation suggestions ready to give to the applicant.
• If everyone is in agreement about value and affordability, close.  Take the app.  If they say they want to think about it, tell them they’ll have 4-6 weeks to think about it.
• During underwriting, make frequent, brief calls or emails to update the family on progress.  If you sense uncertainty, be ready with another quick story to which the whole family can relate.  (Sometimes, gentle reassurance that the right thing is being done is key to successful placement.)

To be continued….