What are some tips for explaining life insurance benefits to customers?

One thing I have found helpful is to understand their needs first as this article stated. You have to understand what their goals and needs are before recommending a product that may or may not be a great fit for them, and if so, how much coverage they would need.

One approach I've found effective is scheduling the first meeting as a discovery session. This is important for understanding the client's situation in-depth, allowing me to align options with their specific needs. The second meeting focuses on explaining how insurance integrates into their overall financial plan and discussing relevant products based on our discoveries. For example, I worked with a high-income executive who believed she was fully covered under her group LTD plan. Through our discovery process, we realized she was actually covered for only 18% of her take home pay due to plan maximums. This gap was uncovered during our discovery process, leading her to seek an individual policy to supplement her Group LTD.

Although I agree that one should ask questions about their needs and goals, most of the questions are used to sell life insurance. Life insurance is nothing more than a tool. So, the questions need to be asked in a way that identifies how the tool can enhance the client's financial plan. More importantly, which life insurance tool fits the best? Most insurance professionals do not consider the full financial view of the client.

One way to keep it simple is to stop trying to sell life insurance on the "features, functions, and benefits" of life insurance. If a professional works through the financials of the client's life, the gap will be identified. If there is a gap that life insurance can cover, then the process becomes a question of wanting to fill the gap rather than a process of selling insurance. You simplify the concept by identifying the gap in their financial life. It then becomes their choice if they want to protect against that gap.

Once again, focusing on the gap in a client's financial life is the value. It isn't easy, in my opinion, to focus on the value of a single product when that product may not be the solution. So many people have heard the stories about building cash value or death benefits. They have also heard "buy term and invest the rest." Dig deeper and ask the more challenging questions to identify where the loved ones will be if something happens to the client.

This one should be the first one. A great first question is, "What concerns do you have that you scheduled this time to talk?" Have them tell what those concerns are and address them. The key is to be honest about whether you can help them with those concerns.

I'm afraid I have to disagree with this. If you push them to act, you are selling a product. With selling insurance, there are no incentives, discounts, or bonuses. If you got to the core reason why they scheduled time with you, you shouldn't have to encourage action. They will take it naturally. If you forced the appointment because you needed to hit a sales number, then you started from a position of encouraging action. I would say to establish a better vetting process for new clients before you take the time to meet with them. Don't be afraid to have 2 or 3 meetings to ensure you're not wasting your time.

I believe a good broker's role is more of a consultant and educator, rather than a salesperson. It's about helping clients make informed decisions, without using any type of high pressure sales tactics.? Pushing too hard for a sale may even drive clients away.? One should focus on providing all the necessary information and guidance, allowing clients to recognize their own need. This approach builds trust and credibility.? When clients understand their options and the implications of their choices, they're better positioned to tell me what coverage suits them best. This approach builds long-term relationships based on trust and respect.