It has always intrigued me that many advisers don’t spend more time in the insurance area. In fact, as the opportunity presented itself I always enquired, particularly with the newer advisers, as to why they didn’t have a greater focus on risk insurance.
Many said that because of the time-consuming underwriting process, which sometimes leads to the insurance application being declined, they would rather stick to selling investments where they didn’t encounter such roadblocks. Others have also frankly mentioned that they just find it too hard to sell life insurance.
So, why do some advisers find it so hard to sell life insurance?
In talking with these particular advisers, I found that there were two major reasons behind this reluctance:
- Generally speaking, the topic of ‘death and dying’ isn’t exactly easy conversation, whereas talking to people about savings, investments, pension funds and so on is more palatable. To talk about the high cost of living, rather than the high cost of dying!
- Convincing people that they should be parting with money for an intangible product from which they personally will never benefit is not the easiest conversation in the world.
My somewhat simple response to these two reasons was that, first, everyone’s chances of dying are 1:1. It’s never a case of ‘if’, always a case of ‘when’. I suggested that they might design a series of penetrating questions that allow the development of a ‘death and dying’ discussion. For example, in the context of discussing one’s assets and liabilities, or current standard of living:
- “In the event of your death, would you want the mortgage on your principal residence to be paid out?”
- “In the event of your death, would you want your family’s current standard of living to continue?”
- “In the event of your death, would you want your children’s private education to continue?”
Secondly, I would suggest from my experience that people don’t buy life insurance because they’re going to die, but rather so that others might live. Therefore it’s a ‘character’ purchase. All the adviser needed to do was find people who believed in their own mortality and who loved their families!
I believe there are two major stumbling blocks preventing many advisers from embracing the sale of risk insurance, and as a consequence impacting the problem of underinsurance. In the first instance, some compliance, media and dealer group influences have promoted a mindset that selling and professionalism are mutually exclusive.
In other words, if you ‘sell’ for a living you cannot be regarded as professional. Conversely, if you want to be regarded as a ‘professional’ you would not stoop so low as to sell for a living! I personally don’t believe that one’s professionalism is merely define by occupation or the number of letters after one’s name.
Rather, I believe that professionals are defined not by the businesses they are in, but by the way they are in business. That has been my experience – that is also my belief.
This blog is based on some of the ideas contained in Russell Collins’ book, Skills that Succeed.
Russell Collins is the principal of Risk Insurance Communication Skills.
“Everyone is selling something” – Robert Louis Stevenson
I agree that there are far too few people prepared to bask in the glory of being a successful salesperson.
Their greatest problem is the fear of rejection. They fail to recognise that there are actually man people on this earth who need what it is they are selling.
If only some-one had the inner fortitude to stand up and say – “I am great at what I do, and look at how many people I have helped to protect and provide for. Without me, their lives would be ruined!”
Don’t believe me? Then ask the people to whom I personally delivered the cheques from the insurance proceeds.
I also feel another problem is the inability to identify the need for how much insurance is needed as a minimum. In the ‘old days’ we used rule of thumb, fact finder and CIMER to establish need and affordability. They were great tools to explain in a simple manner to prospects how those amounts were arrived at.
Few go into that detail today, and therefore have no ‘salesmanship’ to identify the solution to an easily defined need.
Mind you, I have taken care of that, but this is not the place to market it.
I would highly suggest that people who were industry leaders should be held up as the encouragement to reach out and sell to people, because few will ask for how much they need, but will buy what is explained clearly to them.
Sales is one of the most noble and honourable occupations available, and in the old words – nothing happens until a sale is made!