When a client says a policy is too expensive

Stock markets teeter and tumble, jobs come and go — whatever it may be, there are many reasons clients may be concerned about their finances. What do you say to clients who want to cut costs by cutting insurance premiums out of their budgets?

Try this idea from Ross G. Hultgren, CFP, DFP, a 22-year MDRT member and Top of the Table qualifier from Geelong West, Victoria, Australia, which he first shared at the 2019 MDRT Annual Meeting.

Family contribution to the insurance premium concept

If an older client with a life insurance policy comes to you and says he wants to cancel it because it is getting too expensive, explain to him the possibility of his children paying the premiums. This ensures they get a guaranteed return on their investment.

For example, three kids could each contribute equally. Leaving the insurance in place normally works out as a great return for the kids once their parent passes away. Your clients then can spend everything else, knowing the kids have an inheritance. It also gets you in front of the children/next generation, and that is also very beneficial. 

Read more in Hultgren’s meeting presentation, “Success is rented and the rent is due daily.” (MDRT member exclusive)

More MDRT-member exclusive ideas about what to say to clients who want to cancel policies

  • Medical crises don’t stop during economic downturns” — Delia Hui Wong, an eight-year MDRT member from Singapore, shares what she did when a young client wanted to cancel her policy because of a bad economy. 
  • No, I can’t do that” — Guy Munro Mankey, a 17-year MDRT member and Top of the Table qualifier from North Sydney, New South Wales, Australia, shares what he did when a client wanted to cancel his policy because he thought it was too expensive.


  • Thank you, I have just been looking for information approximately this topic for
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  • Daxton Fryer says:

    If the kids can’t afford to take on the additional expense of the premium, the better option would be a life insurance settlement.

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