Insurance Know-How

Let’s Talk About Prospecting

Helena Smeenk Pritchard — Wed, 01 Feb 2012 14:00:12 +0000

Did you know that successful sales people “love the hunt”?

But for some it wasn’t always like that. Because like any skill, some of us have more abundance of natural ability while others have to work harder and practice longer to “get it”. Some of us had great role models too. My father was a career Life Insurance agent and I remember him saying, “I don’t understand why people have trouble prospecting because people like to talk about two things … themselves and other people. All we have to do is listen and ask some well directed questions.” True, true!

Where I have observed it gets hard for people is that they make it a separate and distinct part of “the sales process” rather than a continuous, 24/7 awareness with genuine interest in people and total conviction that they need your help (products/services). Don’t get me wrong, having Centre of Influence Prospecting meetings works very well. What I’m suggesting is not to limit your prospecting activity to those meetings and policy deliveries.

But first let’s remind ourselves how to qualify a prospect. You increase your chances of success and helping the most number of people with life and living benefits solutions by being aware that you are looking for people who:

are accessible to you.
make decisions based on facts.
have the means to pay for your product solutions.
are insurable.
have a need for insurance solutions.

Now decide who you most like to work with and why. Are they first time home buyers? Are they downsizing? Have they recently been engaged? Had a child? Started a new job? Received a promotion? Got divorced? Taken on the care of grandchildren? Running a business that is blossoming? Running a mature successful business? Just sold a successful business? Recently retired? Doing volunteer church/charity work? And the list goes on.

Remember too to ask also about service providers too. For example if you moved to a new community you would need to find a family doctor, dentist, hairstylist, mechanic, drycleaner, maybe a veterinarian or a home cleaning service or a reputable shop that supports your favourite hobby e.g. golf, tennis, skiing, cycling or “riding” (as motorcyclists now say, as do equestrians.) Just because you haven’t moved to a new community doesn’t mean you can’t be “on the hunt” for new, better, faster, closer, more cost effective service providers to replace your current ones. Be curious, be conversational and authentic and people will give you referrals.

Like you – I’m in sales. And I’m happy to tell you that when you get out and talk to people and let them know the service you provide and “what’s in it for them” they actually volunteer referrals without you even asking. More on that next week!

Cheers, Helena

p.s. Ready to take your insurance practice to the next level? Click here to sign up for life insurance sales coaching.

p.p.s. Stay tuned for the launch of Insurance Know-How™ internet store.

Policy Ratings & Declined Applications

Helena Smeenk Pritchard — Wed, 25 Jan 2012 14:00:51 +0000

Did you know that consumers are sending me e-mails with questions like “I wondered if it was legal for insurance companies to refuse to insure children with autism?”

What advisor hasn’t dreaded the rated or declined application conversation with their prospect or client?

Since the rise of the MGAs, and demise of the captive agents, training on how to handle these situations is almost non-existent. But think about what you learned to get life licensed. You know the answers. What you may not know is how to put it into “kitchen table talk” like this:

The short answer is that yes it is legal for insurance companies to refuse or highly rate risks because a life insurance contract is a unilateral contract. That means that once the company has underwritten and issued the policy the owner of the policy is in complete control – not the life insurance company. Once the contract is issued the life insurance company is obligated to honour all of the guarantees and benefits of the contract and is ‘on the hook’ to pay the death claim when it is filed – whether death happens after the collection of only one monthly payment of years of payments.

Life insurance is based on the “a pooling of risk” with each member of the “pool” paying their fare share. An applicant’s “fair share” is based on the assessment of their health, lifestyle (use of drugs and alcohol, criminal infractions like speeding tickets etc.) family health history, any hazardous sports, hobbies or occupation and travel patterns or plans (e.g. to war torn countries or other countries on the prohibited list.) In other words no member of the pool is being asked to subsidize any other member or group of members in the pool. As consumers we should find that very comforting!

The insurance company has multiple ways of assessing risk factors and definitely has the right to refuse to allow a person “into the pool” if it is their assessment that the risk factors (however the insurance company determines them) are considered to be too high. It’s that simple, and again as consumers the benefit to use is that this selection process keeps the price of life insurance for each of as low and as fair as possible.

As always feel free to forward this as appropriate to your prospects and clients.

Cheers, Helena

p.s. See http://www.insuranceknowhow.ca/life-insurance-training/insurance-know-how-sales-tips-tools-training-series/

p.p.s. Stay tuned for the launch of Insurance Know-How™ internet store.

Insurance Protection for Executors

Helena Smeenk Pritchard — Wed, 18 Jan 2012 14:00:44 +0000

Did you know that in Canada it is now possible to buy an insurance policy to protect you if you become an executor or trustee and you fear being sued by dissatisfied heirs?

The Waterloo insurer (Economical Insurance) that backs the insurance will pay for a lawyer to defend an Executor against allegations they sold property or investments at the wrong time or price, played favourites with heirs, or put their own interests ahead of others.

It also provides the cash if a judge ever orders you to make up for an error or omission.

The new ERAssure policies are only for estates of up to $5 million, and may only be purchased for a three-year term within 60 days of a person’s death.

For more details go to http://www.moneyville.ca/article/1011632–where-there-s-a-will-there-s-now-insurance?bn=1

What a wonderful link to send all your clients, and something new to talk about and help seed the insurance conversation during RRSP season!

To all of my subscribers outside of Canada, you would do me a great favour by taking a minute to send me a note as to whether or not you are aware such coverage is available in your country!

Cheers, Helena

p.s. Insurance Know-How’s Store will have lots of easy to use products and templates that will dramatically improve your insurance sales results!

p.p.s. Are you adding a family prot&eactue;gé to your practice? Don’t struggle with training; hire a training and coaching professional! Click here to learn more about Insurance Know-How’s new Family Matters programme.

True Feelings About Life Insurance Quiz!

Helena Smeenk Pritchard — Wed, 11 Jan 2012 14:00:34 +0000

Did you know that you and your clients can take a short quiz created by the Life Insurance Management Research Association (LIMRA) International to help you and your clients identify how you and they manage risk and make important financial decisions?

We all know that most consumers find buying life insurance to be a tough decision because it is a combination of rational financial calculations, emotional attitudes and nervousness about buying the right product for their needs. LIMRA developed the quiz below “based on the science of behavioral economics, a field that combines psychology and economics,” said president and CEO of LIMRA Bob Kerzner.

Use this easy five question YES/NO quiz with your clients to help you help them with their life insurance buying decisions.

1.	Given my situation, I feel there is very little chance that I will die before age 50.	YES	NO
2.	Sorting through all the information about life insurance is too much work for me.	YES	NO
3.	I probably need life insurance but I just can’t part with the money to pay the premiums.	YES	NO
4.	I will spend as much as I need to for adequate insurance coverage of all types health, auto, life, etc.	YES	NO
5.	I am very rational about financial decisions like buying life insurance.	YES	NO

What does the science of behavioral economics tell about the answers? The LIMRA research revealed five findings that can play a large role in individual financial decision-making. Compare these findings with the answers given by you and your clients to the questions above. Ask yourself and your clients which, if any of these have played a role in your/their decision to buy – or not to buy life insurance in the past?

Premature death is both unpleasant to think about and a low probability, so people tend to assume it won’t happen to them, even though the financial impact on their family could be great. This can be a reason not to make a decision to buy life insurance.
Buying life insurance can be complicated. If the “cost” of getting information, in time and effort, is too high, people will put it off and not make a decision. Interestingly though, talking about it with friends and family seems to help reduce that “cost” and people will often copy another’s decision to buy.
Oddly, people hate to lose much more than they like to win. The pain of loss is more than twice as powerful psychologically as the pleasure of gain. People tend to think of insurance premiums as immediate “losses” and undervalue the possible future “gain” of a life insurance payment should they die prematurely. This can be another reason not to make the decision to buy life insurance.
People are usually willing to spend only so much on insurance – their insurance “account,” as it were. They may focus mainly on home, auto, and health and decide they “can’t afford” more insurance and fail to adequately insure their life.
The final decision to buy life insurance is partly emotional. Three key emotions involved in the decision are 1) regret, 2)fear, and 3)love. Suppose you were diagnosed with a terminal illness. Would you “kick yourself” if you had not bought life insurance before getting sick? That’s regret. How worried are you about the possibility of premature death? That’s fear. Would purchasing life insurance express your strong feelings about your family? That’s love.

Understanding the emotions involved and the nervousness about buying the “right” product (question # 2) will go a long way to improved sales results, but only if you remember to use the KISS formula ‘Keep It Simple Stupid’. Any life insurance solution that is not term insurance requires a “kitchen table talk” simple conversation with no technical jargon that focuses on that “what’s in it for them” benefits and features of how a permanent or Universal Life product matches their identified needs. If you lack the tools or training to have that simple kitchen table conversation, you’re in luck. They will be available to you shortly from Insurance Know-How’s store.

Cheers, Helena

p.s. Insurance Know-How’s Store will have lots of easy to use products and templates that will dramatically improve your insurance sales results!

p.p.s. Are you adding a family protégé to your practice? Don’t struggle with training; hire a training and coaching professional! Click here to learn more about Insurance Know-How’s new Family Matters programme.

Paramedicals After the Holiday Excesses

Helena Smeenk Pritchard — Wed, 04 Jan 2012 14:00:36 +0000

Did you know that after the excesses of the holiday season it is more important than ever to prepare and coach your clients to have the best Paramedical experience – especially because lots of people get wound up just thinking about their blood pressure being taken?!

Building your client relationships by telling your clients what to expect and giving them great tips and coaching will ensure that they will be as comfortable and relaxed as possible. Why is it important that your client is as relaxed and well prepared possible for their paramedical examination?

A relaxed client gets the best possible blood pressure reading
A well prepared client has a positive Paramedical experience which goes a long way to reducing “buyer’s remorse”

Consider the following: if you coach your clients to fast and explained to them that by fasting they will

have the best chance for cholesterol, blood sugar and protein levels to be in the expected range, and
this will result in getting them the best price possible

then you’ve got their attention and they have the highest likelihood of being “compliant”.

On the other hand, if the applicant:

doesn’t know what to expect and how long the paramedical will take, or
they don’t know the importance of doing a fast

they may refuse the paramedical appointment or they get stressed during the appointment because of how long it is taking and they did not schedule enough time. Additionally, by not knowing the importance of doing a fast, and therefore by not doing one they are risking that an Underwriter will ask for additional tests and/or an Attending Physicians Reports to be done.

All of these are irritant factors for all concerned and can quite possibly result in the application file being closed or getting an unnecessary rating or outright decline. The applicant needs the insurance protection and you’ve worked too hard to get the application signed to risk this to be the final result. And not only that, if you lose this piece of business you could be at risk of losing the client’s other business you have and the corresponding revenues.

For an Applicant Preparation Guide, or better yet and Applicant Preparation Guide that you can customize with your name and contact information go to www.medaxio.com.

Best wishes for a happy, healthy and prosperous 2012!

Cheers, Helena

p.s. Stay tuned for the launch of Insurance Know-How’s Store … coming soon with lots of easy to use products and templates that will dramatically improve your insurance sales results!

Marketing life insurance to women, part 3

Helena Smeenk Pritchard — Wed, 21 Dec 2011 18:46:46 +0000

Women own 11 million businesses in North America and women-owned business is the fastest growing sector of the North American economy.

Read the full article at Advisor.ca

The Rule of 72

Helena Smeenk Pritchard — Wed, 21 Dec 2011 14:16:12 +0000

Did you know that the rule of 72 applies equally for Did You Know subscribers in Australia, Africa, Bahrain, Canada, Germany, Indonesia, India, Ireland, Malaysia, Mexico, The Philippines, and the United States? In fact the rule of 72 is one of those “universal laws” that was first referenced in print in 1494. What is the rule of 72 and why is it important for you to know how it works?

The rule of 72 states that in order to find the number of years required to double an amount of money at a given interest rate, you divide the rate of interest into 72. The result is the approximate number of years that it will take for your investment to double.

Example: $100 earning 10% interest compounded annually will be $200 in 7.2 years (72 ÷ 10 = 7.2)

This formula is useful for financial estimates and understanding the rate of growth of not only money, but populations and the impact of inflation – also known as “exponential decay”. For example if your country’s inflation rate goes from 2% to 3%, your $100 will have the buying power of $50 in only 36 or 24 years, or 14.4 years if inflation goes to 5%! (A top economist with a Canadian bank recently stated that Canada’s inflation rate for this year will come in at 3% ‘but expected to go to 2% next year’)

What about university or college tuitions? If they increase at a rate of 5% per year than tuition costs will double in the same 14.4 years (72÷5).

Let’s not overlook credit cards – especially at this time of year! If you pay 15% interest on your outstanding balance, the amount you owe will double in only 4.8 years (72÷15)! A very recent Canadian survey said the average credit card debt is $13,000!!

In a previous Did You Know I talked about selling insurance that your clients will “grow into” by protecting what their life and life style will likely be in 5 or 10 years. Now add to that discussion the rule of 72 to determine what those dollars will really be worth given current interest and inflation rates. The rule of 72 along with everyday life changes highlight the need for yearly detailed disability, life, critical illness and long term care insurance review meetings!

Wishing you the safest, happiest, healthiest and most wonderful of holidays! Until 2012 – cheers! Helena

p.s. Stay tuned for the launch of Insurance Know-How’s Store … coming soon with lots of easy to use products and templates that will dramatically improve your insurance sales results!

p.p.s. Are you adding a family protégé to your practice? Don’t struggle with training; hire a training and succession professional! Click here to learn more about Insurance Know-How’s new Family Matters programme.

You Can’t See the Future Looking in the Rear View Mirror

Helena Smeenk Pritchard — Wed, 14 Dec 2011 14:00:52 +0000

Did you know it’s been said that “you can’t see the future looking in the rear view mirror”?

A true statement, as is “past performance is a good predictor of future results” – that is unless you do something differently. Research shows many advisors do not have a sales plan that they develop and monitor, while successful advisors make planning and monitoring their results a habitual practice. And right now is the ideal time to do that!

While most advisors have an income goal, many have not broken that down into an income strategy and tactical plan. In fact they just don’t know how to tackle an exercise like that. Well, it is easier than you think.

A simple table like this will go a long way to adding or increasing life and living benefits insurance sales!

Number of Sales

Life Insurance	Critical Illness	Disability Insurance	Group
Perm	Perm	To 65	Small
Term	Term	Term	Large
U.L.

Collect your data for the last twelve months.

Look at how many sales you have made in each product category for each license you hold.

Then look at the insurance opportunity. Consider how many clients you have, and what life and living benefits products you have not talked to them about!

Now what? What if you:

place a product list or chart like the one above in each client file
plan to have all your client meetings 8 months before their birthday
in your meeting ask your client to put a check mark in the box of each product they own
placed another symbol beside product recommendations not acted on
ask and note the products on the list they bought from other advisors or institutions
explained that these products are also available through you for them and members of their family

A multi-product sales plan needs not be any more onerous than a gap analysis supported with a strategy and tactical plan that’s doable and under your control.

Speaking of doable and under your control: take a few minutes to list what implementation steps are required to incorporate all or some of the above suggestions into your practice next year so that everyone – especially your clients – win by having the protection they need and “no blind spots”!

Cheers, Helena

p.s. Stay tuned for the launch of Insurance Know-How’s Store … coming soon with lots of easy to use products and templates that will dramatically improve your insurance sales results!

Understanding, selling to women

Helena Smeenk Pritchard — Thu, 08 Dec 2011 18:49:21 +0000

Did you know that women spend 80% to 85% of all monies in the North American economy? If you consider that women spend for their families, their aging parents, buy for their businesses, are buyers for the businesses they work for, and influence the larger family purchases, then this statistic makes sense.
Read the full article at advisor.ca

Approaching the finish line

Helena Smeenk Pritchard — Wed, 07 Dec 2011 14:00:56 +0000

Did you know that by going to https://personal.vanguard.com/us/insights/retirement/plan-for-a-long-retirement-tool you or your clients can get an idea of the probability of living to any given age? Of course this is without any consideration of current health and geography, but still an eye opener.

In Canada our statistics show that there is a 45%-50% chance one partner per couple will live to age 90.

While that’s talking about the end of life, let’s talk about the upcoming year end. Lots of advisors only focus on the year end to push to get business “in the mill” underwritten. However the most successful advisors I know spend hours on the phone calling all of their ‘in force’ clients. Why is this part of their success strategy?

It’s a non-sales focused call to wish them the best of the season and get caught up with what’s going on in their clients’ lives. Invariably, this chatty conversation provides the advisor with all kinds of information that will result in next year’s life, critical illness, disability and long term care insurance sales. But they also go a step further and find out when out-of-town sons, daughters and families are in town for the holidays. If they haven’t met them they ask to so that they start or continue a relationship with beneficiaries / heirs before the client passes away. And when that happens there is a much higher chance of the advisor having or getting the beneficiaries / heirs as clients than if there was no pre-existing relationship.

For the clients you have talked to or seen recently, call their place of work during off hours when chances are very high that all you will be able to do is leave a message. Because it’s true that in 50% – 67% of all other calls you make you will only have the opportunity to leave a voice message, and that voice message should not exceed 30 seconds – you’ll be able to call 100% of your clients in no time!

Cheers, Helena

p.s. Are you adding a family protégé to your practice? Don’t struggle with training; hire training and succession professional! Click here to learn more about Insurance Know-How’s new Family Matters programme.

p.p.s. Don’t let volatile investment markets erode your income. Learn how to incorporate the life and living benefits insurance in every client meeting. Click here to see the series of 24 Insurance Know How sales tips and tools training workshops.