Most of the time, retirement plans and children’s education fund-related products require long-term discipline and consistent financial commitment. This feels challenging for some clients. When I encounter a client who may be hesitant about long-term planning, I often use simple explanations. I avoid insurance jargon so it’s easier for people without an insurance background to understand.
For instance, I may say, “Mr. Prospect, do you prefer to start saving a little now until your retirement age or until your children are about to enter college so that the amount of money is ready when it’s needed? Or do you prefer to borrow money from banks and then pay in installments with interest every month?”
I can then explain how this works for another family similar to their own. For example, I have a client who bought a children’s education fund-related insurance policy for her child and joined a retirement plan program for her husband and herself.
After several years of commitment, they started enjoying the benefits of their insurance policies. They will receive a promised large amount of money by the end of the program. No doubt, this program is a surplus to the family just because they decided to start saving at an earlier time so that they can now reap what they sow.
If you try this when talking with prospects and clients, I wish you as much success as I’ve had with this method.
Kennedy Sumarlie, of Jakarta, Indonesia, has been an MDRT member since 2018.
For more about discussing the importance of long-term financial planning with clients:
- Read “Why is financial planning important?” [MDRT member exclusive]
- Watch “Protecting clients’ futures: The value of financial advisors” [MDRT member exclusive]
- Watch “Let’s talk about sailing through life” [Court of the Table and Top of the Table exclusive]
The keys to connecting with prospects and clients
Top 5 biggest financial mistakes made by CEOs
Connect better with a powerful question and stories