Life Insurance Sales Tip: When to Pitch Term v. Perm
If you sell life insurance, this probably seems pretty silly to you. But hey—I used to be in sales: sometimes you find yourself selling the product with the best commission over the product that best fits the prospect's needs.
It's always good to get back to basics. Click through to read the synopsis of tips for pitching perm v. term.
Pitch your client a term life insurance policy when:
- They need coverage but can't afford a permanent life policy. Even though the cost of a term policy is likely to increase upon each annual renewal, it will likely remain considerably lower than that of a permanent life insurance policy.
- They need basic insurance protection for their beneficiaries in the event that they die prematurely. If your client has two children, INN suggests pitching a 20-year term policy, which would cover the children up until they were adults—and able to support themselves with a job.
- They have short-term needs, like paying off a mortgage, or a child's education. For example, the breadwinner could purchase a policy at the same value as the mortgage.
Conversely, you should pitch your client a permanent life insurance policy when:
- They need coverage regardless of when they die—and can afford to pay the premiums.
- Their estate is worth several million dollars, but most of it is not liquid. The beneficiaries can then use the proceeds of the policy to pay the estate taxes.
- They're looking an avenue for tax-deferred savings or a risk-free investment.
- They're looking for a secured asset, as permanent policies are protected from creditors and lawsuits.
Check out the full article here, and leave your perm v. term sales tips via comments!
