A good opportunity exists to sell new or additional coverage to aged life insurance leads this fall. As salaried workers review their annual benefits, some may find that they need additional coverage to be fully protected. For the more than 25 million households (30% of the country) that have no group coverage, now may be the time to buy.
Here are some talking points to consider as you refine your sales scripts and cold-calling strategy.
Today’s Work Benefits Don’t Go as Far
Not many workers take a close look at their life insurance work benefits. Most are understandably preoccupied with precarious health insurance coverage issues. However, group life insurance coverage doesn’t go as far as it used to.
A new Life Insurance Marketing and Research Association (LIMRA) study found that only around 35% of households (about 43 million families) have any kind of life insurance coverage from work. Average benefits are pretty low — around $236,000, or 2.6 times income replacement.
With bottomed-out interest rates and rising living costs, that’s probably not sufficient for most families. Benefit coverage that’s 10, 15, or even 20 times income replacement is recommended by experts, depending on the client’s situation.
Employer Benefits Give a False Sense of Security
As with many things insurance related, prospects are often unaware of risks. Many won’t know that company-offered group coverage — that’s only one to three times their current salary — isn’t very much. Moreover, some may not realize that employer coverage ends with their employment. If they were to be laid off or fired, they’d have no coverage.
Even if an employer offers more extensive group coverage, not all workers take advantage. That is often an easy first option to explore. However, again, it takes prospect education.
Selling Term Policies as a Stopgap or Investment
Your aged lead prospects may need more coverage than their employer provides because they have a young family, a mortgage, student loans, a spouse who went back to school, and so on.
Simple term-life insurance policy coverage can be an effective stopgap for some, or an opportunity to consider more robust coverage for others. For those with higher incomes and strong savings, more whole-life investment and financial planning options could be a good solution.
Preparing for the Unexpected
As with all life insurance discussions, many people avoid talking about anything to do with death. However, many could gain peace of mind for themselves and their family by purchasing additional coverage. Sales prospecting that gets prospects to consider this pain point could open up an opportunity for more people avoid unnecessary hardships should they or their loved one die unexpectedly.
Narratives to Serve as Motivation
Storytelling and narrative are particularly effective for life insurance prospects. Personalized stories of untimely deaths from friends, family, or even celebrities tend to motivate leads to buy coverage to protect their own families.
One example: Danica Patrick, the famed professional racecar driver, is a spokesperson for Life Happens, a nonprofit insurance group. Patrick recently told the Reuters news agency about her personal experiences with the untimely deaths of both of her grandfathers and her own concern for her family’s well-being due to her risky career. “Bad things can happen. That’s just life. But life insurance is an easy and smart way to lessen the impact and protect loved ones,” she said.
Any way you look at it, aged life insurance leads have a lot of options. Start talking with your prospects about their work benefits coverage, their family, and their financial obligations. As benefits season gets underway, you may be able to help a lot of people secure the right amount of coverage to protect themselves and their families, will also growing your sales and charting a bright future for your business.
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