How to know when it’s time to convince your clients to increase their term life insurance premiums

Tips To Convince Clients To Upgrade Insurance Plan

A life insurance policy is one that serves as a safety cushion to fall back on when facing an uncertain and unpredictable situation such as a possible life threatening illness or a car accident. It is also viewed widely as wise tax saving investment. Premiums on life insurance are invested to secure the future of your prospect’s family and it’s benefits can be both emotionally and financially beneficial. As an agent, it is your job to make your prospects and clients aware of the policies available to them and the benefits that they could provide their families by investing in higher premiums, especially during key moments in life.

Approaching the subject with your clients isn’t always easy because not everyone is comfortable talking about life and death. In fact, it is a topic that is often avoided in conversation. However, death is a certainty in life and it is very important to be prepared. A term life insurance policy can ease the financial pressure of losing especially the bread earning member of the family.

As an insurance agent, you should know what are the appropriate life events, around when to bring up the conversation, and convince your client to invest in or increase their premium cover for life insurance.

Opportunities to convince our clients to upgrade life insurance plan:

 

    • When your client is planning to get married – One of the biggest and most important events in a persons life is when they get married. We are not only talking about the wedding itself which is usually a heavy financial expense, but also the changes that occur after such as pooling finances together and planning a future together, as a couple. Sometimes young couples may want to apply for a loan together in order to buy a new house, which means both parties have to sign the loan documents together. In this case, if one party dies for any reason, the obligation to pay up the debt often falls on the other party alone. This is why it is crucial to inform your clients of all such possible scenarios so that they can be better prepared in the unlikely event that something unfortunate happens.

 

    • When your client is getting ready to have kids – First comes marriage, then comes a baby in a carriage…well that’s the way life goes. Children are always going to be a source of happiness to you and your family but the truth is you have to prepare financially before welcoming them in to the world, as do your clients!Having a kid costs money and sometimes, even having two incomes is not enough to raise a child. Now imagine what would happen if your child was to lose one parent due to any unfortunate circumstance? It is a dreadful thought but it happens. This puts the surviving parent in a very difficult situation so having their life insurance policies in place helps, giving them the comfort of knowing that there is a little financial cushion to help with the child’s upkeep and education.Gently and politely reminding you clients of this when you know a baby is on its way may be a good idea.

 

  • When moving or upgrading homes – After a few years of working hard and being rewarded for your achievements, you may find yourself in a good enough financial situation to consider upgrading to a bigger home. With kids growing up, you may even consider a new building complex with amenities such as a gym, swimming pool, tennis courts, etc.Take a situation where the breadwinner of the family passes away suddenly. The spouse is left with paying the expenses and maintenance of the house. This is where life insurance is helpful because it softens the blow financially and gives surviving members some breathing room. In India, most of the new building complexes that are being developed come with hefty monthly outgoings and these can add up very quickly, especially without proper financial planning.

The above mentioned are a few instances when it is important for you as an agent to step up. When a client experiences a major life event, think of it as an opportunity to follow up with them and see what further value you can offer them through insurance policies and with them increasing their premium cover amounts.

Many of these situations may not even cross your clients minds and this is where you, the insurance agent has to come in and anticipate the needs of your client in order to ensure a happy, stress-free life filled with security.

While everyone hopes there won’t come a time so early on that one might be required to use their life insurance pay out, knowing that it is in place will surely help your clients breathe easy.

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