Life insurance is all about awareness. Clients need to be educated about the benefits of life insurance. If clients are aware of their future needs, such as planning for retirement or any contingencies, it becomes very easy for them to purchase an adequate amount of insurance. But if you force them to buy life insurance, then they may refuse and will have the opinion that it is the advisor who wants to earn a commission by selling insurance.
Insuring human assets
We must help our clients realize that while they insure all their assets, the plant and machinery, vehicles, inventory, even the furniture and chairs on which they sit, they have not insured the most valuable asset of all: themselves. It is not necessarily a lack of belief but more a lack of understanding.
I tell my clients, “It isn’t the stock or machinery that makes the money. It’s you. The only income-producing asset in your business is you and only you. You haven’t insured the most valuable asset of all: YOU!”
It is important that our prospects understand that the people running a business are more valuable than the business they run. Say to your clients, “If you were running a puppet theater, would you insure the puppets, or would you insure the man who pulls the strings?”
You can avoid paying the premium, but you cannot avoid the problems. If you avoid the premium, you just leave the problems to your family or your business. The premium is only a fraction of the size of the problem. You have the choice.
Survivors best understand life insurance’s value
No one wants to talk about their own death, but no survivor in the world has ever felt that the breadwinner has adequate life insurance. I always say that only a widow or dependent knows the value of life insurance, but it is too late then. I tell my clients that only lucky people get insurance who fulfill two mandatory requirements: good health and being able to afford to pay the premium. If either one is missing, one cannot get insurance. Make the decision immediately since tomorrow is not guaranteed. Always try to explain the challenges they can face by not insuring themselves. Give an example to the client of any family who is facing financial trouble and whose breadwinner dies having no insurance or inadequate insurance. Insurance gives a feeling of security and confidence to family members.
Always love your profession
I always love this profession. I am a second-generation advisor in my family, and my daughters are also in the same profession. I feel that, as insurance advisors, it is our prime duty to give full coverage to clients. Insurance is an expression of love for a family.
Insurance is in my blood. I always think insurance, do insurance, and when I sleep, dream insurance.
This was excerpted from the 2021 MDRT Annual Meeting Virtual Event presentation “Don’t sell — Let the client buy” (MDRT member exclusive) from 31-year MDRT member Ramesh Damani, of Kolkata, India.
For more ideas about how to discuss insurance with clients: