The insurance industry is huge and vast, but one of the easiest niches to pursue is final costs.
Leads are easy to find, premiums are high, signing is easy, commissions are great and you get paid within days, but you’re dealing with a different type of prospect in addition to the difficulty of starting and successfully running your own business. There are many ways to stumble, but if you can avoid these six pitfalls, you’ll rise above the competition.
1. Plug into The Matrix and never pull a Neo
The bottom line is one of those niches where you really need a system to buy into, a mentor to follow, and a platform to copy. Life insurance is built on a hierarchy for a reason. You need an upline that has paved the way before you. You should have scripts, presentations, sign-off guides, rebuttals, etc.
The internet is full of voices. Coaches and gurus clamor for your attention. Use this wire, ask these questions in the home, but you have to block out all the other voices and focus on the system you’re plugged into and relax.
2. Buy leads and invest the difference
It’s not exactly what Dave Ramsey would say, but the bottom line is a very expense oriented business, so you need to be able to manage your cash flow every week.
So before you pay your phone bill, before you put down cash for your mortgage or even drop some coins on your car payment, make sure you’ve bought leads for the week. Leads are the lifeblood of any business, but this is especially true for a closing cost agent. Learning how to create a budget, put a name to every dollar, and live below your means are skill sets that will make or break the ultimate spending agent.
3. You control the clock, so you better hit it
Although there is no foreman who can guarantee that you work 40 hours, you better congratulate your boss if you don’t. Guess what? You are the boss! People become insurance agents for a variety of reasons, but flexibility and freedom should be near the top.
So you have to be careful or it will be easy for you to stay up late and go out in the field even later. Maybe an unpleasant prospect turns your game into a mess and you decide to go home early. This may sound basic, but create a schedule and stick to it.
4. He has not two pennies to rub
I’m sure you’ve heard don’t judge a book by its cover. This is certainly true as you navigate the shallow waters and cat-infested houses of the average bottom-line prospect. Sure, they don’t have a lot of money and are probably renting the couch you’re sitting on, but they have you for a reason. They don’t want to leave that burden on their daughter when they die.
So make sure you show them premiums that are high enough to cover their funeral. They’ve been around the block a time or two. They know this is not a free handout from the government. They will have to pay the piper so their children don’t have to pass the sign. So show them $60, $80 and $100 options. You can always walk back, but you will never be able to go up. Their family will thank you and so will your pocketbook.
5. To be or not to be, that is the question
Hamlet may be required reading in some schools, but your potential average final spender hasn’t heard this soliloquy in decades. There are still some very important questions that need to be asked.
why are you there You must uncover the need before you do anything else. Unless you’re knocking on a door, you entered that door because the prospect responded to some lead source.
There was something that tugged at their heartstrings when they read the ad. Most people respond to the ad because they have absolutely no insurance and just need to insure something. Or maybe they have some insurance but know they need more. Or maybe they’ve taken care of all that but want to leave a little something for the kids, their church, charity, etc.
“Which of these is the reason you brought me here, Mrs. Mary?” Do not continue until you have a clear and concise answer to this question. They will define their hot button problem. Now you know what the problem is that you are trying to solve. If you don’t get them to reveal that concern, you’ll hear the dreaded “I have to think about it” objection at the end.
6. All my bills are paid on the 15th of the month
Not this account. The final spending outlook is generally related to Social Security or government-funded disability. The government can’t balance their budget and it takes them years to do anything, but they always get the old people’s money on time.
Social Security or disability retirees receive their monthly payments like clockwork on the same day each month. When you suggest that their payment go out on the third of the month, they may object. “Can it come out on the 5th? I just want to make sure the money is there. Simply put, they tell you a story. What they are really saying is that they want to spend all their money first and if they have any money left over they will pay their insurance bill for the month.
Don’t give them a chance. Let’s accept the sale. Tell them when the draft comes out. If you don’t make it a big deal, it won’t be a big deal. If they object, hold the line. If you don’t, expect that commission to be returned next month.
Final expense perspectives add several new dimensions to insurance sales, but they are an underserved market. Statistics show us that there will be 10,000 baby boomers retiring every day for the next 15 years. We are blessed with the opportunity to solve a big problem for our prospects.