How to Help Clients Pick the Best Life Insurance

July 20, 2021 | Agents, Insurance

Life insurance is something that everyone must consider at some point in their lives, significantly if they are raising a family or want to protect their loved ones in the event of their passing. That’s why you must help your clients pick the best life insurance so that they can focus on themselves and their loved ones and less on their protection.

However, many components that come alongside life insurance can make it an extremely confusing concept for your clients. When trying to help them, it can be hard to get your message across.

This article will uncover all of the ways in which you can assist your clients in picking the best life insurance policy for them. Let’s get started.

1. Ask Them About The Coverage They Need

While you’re asking them about their coverage, evaluate how they answer. Understand how much income your clients are bringing in and whether there is anyone in their family who is financially dependent upon them. There are also a few other things you will need to evaluate when trying to come to a consensus with your client, like their family and health history and their affordability.

Look Into Their Family and Health History

Finding out what coverage your clients will need requires a look into their family and health history. Depending on how healthy your client is, their options may be limited. If your client is in poor health, their rates will be higher than if they are young and healthy. This is because your client and his or her family will be insured for these predicted health problems. The best indicator for your client’s health situation is to look into the family history.

Look Into What They Can Afford

When you ask about the coverage that your client needs, some of their financial history should be revealed. This is where you can take the opportunity to seek out what they can afford. If your client is in debt, then it could affect the life insurance they select. These debts could range anywhere from your client’s student loans to his or her mortgage. Knowing your clients’ debts will help you calculate what an excellent policy is that they can afford.

2. Ask If There is a Legacy They Would Like to Leave Behind

It’s important to know whether your client wants to leave behind a legacy for his or her children or beneficiaries. You will want to make sure that your client knows that it could be beneficial to have life insurance. It allows them to support their loved ones when they are no longer around. Your client may have a life insurance policy through his or her employer, but explaining that they will need a separate policy may be worth explaining. This is because, sometimes, policies through an employer may not be enough. This is because clients’ employer’s policy is only about twice as much as their salary, when, in reality, it is suggested that it be at least six to 12 times their salary.

3. Narrow Down Their Wants

You cover a lot of their needs by asking about their health, family and financial history. Now it’s time to narrow down some of the things that they are looking for in life insurance that might not have been mentioned yet. If they are looking for a term life policy, ask them about whether they will want to seek out constant renewals or if they will want to eventually merge into a more permanent life insurance policy.

4. Display understanding

This is less about the sale and more about being a good insurance agent for your clients. They will likely be overwhelmed with the amount of information they’re learning. Understanding their feelings and taking things at their own pace will make them feel more confident that they are selecting the right plan. You don’t want to rush your clients into selecting life insurance because it will seriously impact them, whether in a positive or negative light. Show your clients that you understand their potential pressure by sharing with them how you have helped clients in the past who have felt the same way and that you work in their best interest. They will appreciate the honesty and cooperation.

5. Answer All of Their Questions

Life insurance is a confusing thing to understand completely. That said, you can count on your clients to have questions for you. Some will have a lot, and some won’t know what to ask. You will need to gauge this spectrum of questions and have the answers to whatever is thrown your way. And, as knowledgeable as you are on the subject, it’s always nice to take some time before your client comes in to review some of the well-known and little-known facts and statistics about the different life insurance policies. This will help you stay on your toes and have a ready answer to your question.

6. Know When to Approach Them

Everyone has something different going on in his or her life, and your clients are no exception. You have to understand when the best time to approach your client is. Ask yourself, “Is my client starting a family? Is my client’s term policy coming to a close?” What do I think my client’s future will look like?” You will know when to approach your client about starting a life insurance policy with you based on how you answer these questions.If you’ve reached out to some of your clients but haven’t heard a response, politely reach out to them to let them know that you are still thinking about them and that you are there whenever they’re ready to discuss a policy. You can reach out to your client via mail, email, or a phone call.

7. Present All of the Different Options They Have

We’ve already stated this, but it’s worth repeating: your clients may feel overwhelmed during the “shopping” process of selecting a life insurance policy. You’re still going to need to present them with all of the options that are best fit for them, but you’re going to want to match them at their pace. If your client is also enrolled in Medicaid, some of his or her options may be limited. There are exceptional circumstances in which Medicaid will cover a life insurance policy, but this doesn’t mean that his/her life insurance options won’t impact Medicaid eligibility.

To be eligible for Medicaid, an individual can’t have more than $2,000 in assets. When an individual signs up for a whole life insurance policy, he or she can accumulate a cash value through it that he/she will be able to access. This can be counted as an asset and significantly hinders the individual’s Medicaid eligibility. There are a few small whole life insurance policies that Medicaid has exempted from being an asset, and you must present these options to your client if he or she is looking for a whole life insurance policy.

Cover All Benefits

Otherwise, term life insurance may be a better option, as it isn’t an asset and won’t affect Medicaid eligibility. In other cases, take the time to explain the benefits and drawbacks of every plan you present to your clients. If there’s a specific term life insurance policy that will give your clients’ beneficiaries a higher payout, you will also want to explain to them that this is not a permanent policy and that it will eventually end unless they renew it.

Make sure you are also offering advice. But it’s crucial that you provide advice as yourself and not as an insurance agent when you do this. Providing advice as yourself shows that you have their best interest in mind and that your priority is not to make a sale but to get them the best life insurance policy.

Summary

It can be very rewarding to know that you have helped your clients select an excellent life insurance plan that will have their backs. You can do this by:

• Asking them for the coverage they need (by evaluating their family/health history and affordability)
• Asking if there is a legacy they want to leave behind
• Narrowing down their wants
• Displaying understanding
• Answering all of their questions
• Knowing when to approach them
• Presenting them all of the different options they have

For other tips on how to assist your clients, make sure to read what Lead Concepts has written just for you today.