Sales Concept

Show Clients What Happens To Term Insurance Over Time

Have you ever been in a situation where you think your clients need permanent insurance but they or their circle of influence think they will be able to keep buying term insurance forever.

One of my favourite ways to tackle this "objection" comes from my late stepfather Larry Kinlin. After the initial chit-chat and when the topic if insurance need would come up he would simply ask his client or prospect. "When do you want your insurance to end?" and then he would wait,... He would wait as long as it took, sometimes minutes. Even if it was uncomfortable. Ultimately most clients said well when I die. In which case he would say well then this type of insurance(term) may not be right for you.

Occasionally, he would get a client (usually an engineer)who would make 2 big assumptions

Assumption 1: I will always be able to buy term insurance.

Assumption 2: I will invest the difference religiously.

In these scenarios, the only way to counter this objection was to show what happens to term insurance over time even if you make the risky assumptions above. To do this we would take the clients current age and term product, then at the age, the term product would renew we would research a new rate as if they reapplied and got an offer in perfect health. We would do this for as many times as we could till the carrier would no longer issue a policy even if the client was healthy. Then we would use the guaranteed renewal. We took this pricing data and calculated if the difference was invested to show that even if these assumptions are made the strategy often does not even work. The whole purpose of life insurance is to fund a liability at a lower cost after all. My stepfather would say well as you can see Term insurance is like a diaper and at some point, you have to change it." but as you can see even if you take all the risk and invest diligently you are not guaranteed the results you would get from an insurance contract.

Thankfully today we have a much better system where we have automated this process inside Life Design Analysis. If you want to show your clients what happens to term insurance over time even if they make the assumption they will be healthy enough to buy term insurance use our automated term rewrite metric pair with our buy term invest the difference report component.

Buy term chart

Watch our quick video to see how to illustrate this concept!

Change the way your clients think about their insurance using our powerful visual reports proven to sell more insurance.