Your clients may generally understand the benefits of life insurance, but this basic understanding is often not enough to convince them that taking the next step and purchasing a life insurance policy may be right for them.
So, what are some of the ways can you approach this with your clients?
One path is through empathy, by framing the conversation around learning about them and their fears, needs and hopes. That can help build rapport, personalize your message and focus on problem-solving.
Here are a few different ways to start communicating with your clients about the importance of life insurance.
1. Ask what they know about life insurance
Many people have a high-level understanding of life insurance, but learning the details can often feel daunting. So one place to start is by asking your clients what they already know about life insurance. From there, you can educate them about the process, get more insight into some of their objections and help walk them through how to obtain coverage.
It may also be helpful to create a list of life insurance FAQs or a life insurance glossary to provide clients.
2. Talk about their thoughts on costs
People have invisible scripts and preconceived notions about life insurance. A common one is that life insurance is too expensive. While you know the reality is different, chances are your clients may think they can't afford a policy or they don't earn enough to make coverage worthwhile.
Run through the numbers with your clients and show them coverage is far more affordable than they think and that their policy through work may not cover their needs.
3. Ask them to think about the future
A significant part of financial planning is preparing for the future. That same approach applies to life insurance, too. So when you meet with your clients, consider asking them to think about how their loved ones' lives may look if they lost a key income.
It's scary to talk about death. However, opening an honest conversation about how your client's loved ones may sustain their lifestyles, pay a mortgage, or cover educational costs can help them see why life insurance is important.
4. Understand their motivations
Building a personal connection with your clients is vital to long-term relationships. And with a topic that can feel as complex as life insurance, they may be stuck deciding which type of coverage is best for them, pushing it to the back burner.
So it's essential to dig deeper and ask them about their motivations. For example, do they want a death benefit to pay off debt, keep their loved one's lifestyle, cover higher education? Knowing these can help you guide your clients in narrowing down options and choosing the best policy for their needs.
5. Review what's been happening in their lives
It's a good idea to catch up with clients regularly to learn more about their lives and build rapport. But asking about their lives can also help you understand if they've had any significant changes — a new baby, a big job promotion, a divorce — that may impact their finances and life insurance needs.
From there, you can explain how life insurance can benefit them during these different ages and stages of life. And, if they already have coverage, discuss how these changes may mean they need to reevaluate their current policy.
Discussing life insurance is a complex topic in the best of times — no one wants to chat casually about their possible death. But, leaning on some of these conversation starters with your clients can help you begin to effectively communicate the value of life insurance.
What are some of your clients' most common reasons for not purchasing life insurance? Learn more about how to address excuses for not buying life insurance.
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