In the Final Expense business we will run into prospects that already have life insurance. Yet they still mailed back the direct mail card, so there was some sort of need, but many times their current policy will cause an objection that will prevent you from closing the sale.
I have met very few prospects over the years that knew exactly what they had. For example, just this week I had a gentleman who told me he had a $17,000 Primerica policy. His daughter had the policy so we had to call in. I gave them his policy number and it was actually a $20,000 policy…that lapsed 9 months ago. They had tried to rewrite a new policy for him 4 months ago, but it was still waiting on an APS. Suffice to say, I got the sale.
Even if they believe they know what they have, until they see it with their own eyes or hear it with their own ears, they will not believe you. To get the policy, I will usually say, “So I imagine they mailed you a policy right? Yeah, if you can go grab that, that would be great.”
Sometimes it will be a struggle to get them to get out of their chair and get it. Just remember, they mailed the card in to you. They requested the information. You came to them and now you need to them to do a few things so that you can help them. Don’t be rude, but don’t back down.
Sometimes they won’t have the policy or know where it’s at. In those cases you will need to call in to their current carrier and get the info. If they have a loan out, you will always need to call in as this will affect all of their surrender options.
To the client you would say, “Well Mrs. Jones you have to have a copy of your policy!! What will your kids do when you pass? We are a full service shop here. One of the things we can do is call in and get a replacement policy mailed out to you free of charge!” Then you call the carrier. Don’t ask, just do it!
When they answer say, “Hello this is Josh Jones and I am calling for a mutual client of ours. She has a policy with ya’ll and has lost it. We were trying to get all her papers in order and just wanted to see what she has and maybe get a replacement policy mailed out.” Then they will need to speak with the client and will ask to give permission for you to speak with them. Then you need to find out a few things:
Type of Policy (WL, Term, UL, graded, modified etc)
Amount of outstanding Loans, if any
Reduced Paid up Amount
Extended term option
(and if the prospect is a smoker, confirm that it was written as a smoker)
Now you have all the ammo needed to see if a replacement is even in the best interest of the client and you will have all the information to show the client. I always have the phone on speaker so the client can hear everything I’m asking while I write it down. They don’t have to trust me yet, they’re hearing it directly from their current carrier. ***It does no good to tell them that their Colonial Penn policy has a 2 year waiting period or that their AARP policy is an increasing term that will cancel at 80 if you don’t either show it to them in their OWN POLICY or get it from the horse’s mouth by calling the carrier!***
Now I will give you a couple situations from this past where I ran into in the field to show you what I’m talking about.
I had some time, so I door knocked a lady in between appointments. The 700 sq ft apartment was clean, but she had nothing. An old school 13″ tube TV and a lazyboy. No kitchen table, no couch to sit on. She pulled out a single bar stool for me to sit at. I ended up just putting my bag on the bar stool to write on. I found her “why” was that she wanted a little bit more insurance. She had a Gerber policy that was a few years old, at least that what she said. When I initially asked her to grab the policy, she balked, said she didn’t fill like doing that (how often do we hear that??). I told her if she had had it for 3-4 years, like she thought, it might have a couple hundred dollars in cash built up. (I don’t think she believed me). There was not much I could do for her. Her health made it that she didn’t qualify for some of the cheaper options and Americo was the best I could do for her. It was going to cost a little more no matter what. She said she had $7000 and I showed her a price for $8000 and $9000, told her I would roll it all up into one program and Gerber would send her a couple hundred. She didn’t like that idea. She couldn’t afford any more than she was spending etc.
Ok, I’m done I guess. I will just leave now?? No, we still haven’t seen the policy. So I tell her that’s fine, but we need to make sure the Gerber is inforce as they always come with a 2 year waiting period. I can’t leave until I confirm that, so I need her to go grab her policy. You can see her face contort and she thinks about just telling me off and sending me on my way, but she gets up. As she goes back to the pantry, I look at the agent riding with me and say “This is a hail mary!” In my mind I didn’t think anything would come of it. So then I see her pull down a ladder from the ceiling and climb up into the attic lol! I sent a 70 year old woman to climb a ladder into the attic…
Well she comes back down and hands me the policy. To my surprise, it was actually 4 years old and had over $450 in cash value. I quickly run a quote and see what it would cost to get the same face amount now with Americo. It would increase her premium form $32 to $35. So I just walked over to her lazyboy, showed her in her OWN POLICY the $450 cash value and explained that I could keep her at $7000 but her payment would go up $3 a month and then Gerber would send her a check for $450. She said, “Yeah, let’s do that!”
If I had not pushed for the policy, I would not have gotten the sale.
My second replacement of the week happened on a Telemarketing lead. I walk in there and you can tell she was a little savvier than the normal Final Expense prospect and she said she really didn’t need anything. She had like $75,000 in life insurance. Now when you’re in the ghetto (or any FE area) that should make you stop and question it. So I kept pushing to find out what she had and eventually found out she had recently taken out a policy “through Medicare.” I was confused for a second and finally realized she had just got a Direct Mail card that talked about Medicare benefits and bought from another agent. But she mentioned that it had coverage for her grandkids included.
So I acted a little curious and said, let me take a look at that. So as she’s looking for the policy, she mentions “it’s in here with all the others…” So I said, “Well go ahead and pull them all out.” I can’t remember the exact words, but she told me NO, but did pull out the most recent policy. It was a Landmark Life policy with 4 riders for her grandchildren. At this point I ask if her if she knows how this works. NO? “Well, when you pass, these polices just disappear!” “What?? Nobody else can just take over the payments??” “Nope they’re just gone!”
“Well, the other policies I have on them are not like that.” “Oh yeah” “Yeah, they each have their own policy.” “Let me see…”
Then she starts pulling out child policies from Monumental and by this point she’s pulling them all out. So I start going through them one by one. She had a graded motorist WL policy, the Landmark WL with the grandchildren riders, 4 Monumental apps on the grandchildren and TWO Monumental Term polices. She did not know they were term policies. They were expensive too. She was spending almost $175 on term policies that were going to double in price every 7 years. She was hopping mad! So once I went through everything, I showed her how I could double what the grandkids had with Mutual of Omaha and roll all her polices up into 1 Whole Life policy. Well I had to use two lol. She got $40,000 with Transamerica and $25,000 with Americo.
One major side point is that I CAPTURED ALL THE PREMIUM! You always want to round up all the policies and capture all the premium that they are currently paying. I don’t know how many times I have run into this exact situation. The Monumental agent sells them some policies, then the Motorist agent sells her another policy, then the Landmark agent sells another policy. Not one of them took a look at what was going on. I was able to replace them all and get around $3000 AP in one house, by getting the policies and capturing all the premium and now I am the only agent in the house.
You want to do that with any replacement. If you come into the house and they’re paying $75 for $10,000. You run the numbers and find out that you can get them that same $10,000 for $65. So you present it to the client and they say, “Nah, that’s not enough difference to change.” Instead, show them what you can get them for the exact $75 they are already paying each month FOR FREE! First off, you’re capturing all the premium. Second, you’re scratching that natural itch that our folks have for getting something for nothing. $10 less per month doesn’t sound as good as getting $1000 more in insurance FOR FREE. $1000 is greater than $10.
MAKE SURE YOU CAPTURE ALL THE PREMIUM. Then explain that you will handle everything for the client. Sometimes they will act like they don’t want to switch, even though it should be a no-brainer, because they DONT WANT TO HAVE TO DO ANYTHING. Remember, they are professional procrastinators!
“Mrs. Jones, great news, we can actually get you $11,000 for what you’re paying right now. You’ll get $1000 more in insurance for free! Because you’ve had this policy for so long, you will also get a check for $300 and don’t worry about a thing, we are a full service shop! We will take care of everything for you. We’ll call in and get everything switched over. It will be a seamless process. You’ll be paying the same amount, but your kids will get $1000 more when you pass and you’ll get $300 right now! Now who did you want to leave the money to when you pass?”
Always, always, always GET THE POLICY. You’re closing ratio on prospects with existing coverage will skyrocket if you do!
Josh Jones is an expert in the Final Expense market. He and his business partner, Brandon Smotherman, who is a $400,000/year Final Expense Producer, have taken their years of successful experience in the Final Expense and Medicare markets and are now teaching agents how to replicate their proven system. So whether you are thinking about entering the Final Expense market or you are a veteran agent that desires a greater income or you just want to add some Final Expense products to cross sell, Josh and Brandon have the knowledge and resources to help you grow your business.
Visit https://learningfe.com/what-we-offer/ for more details.