Optimizing Your Life Insurance Prospecting Process


Insurance is an important component of any financial plan. Traditionally, it is used to protect families in the event of an untimely death so they can maintain their lifestyle. It can also be used to preserve the wealth your clients have worked so hard to build and allow them to effectively transition it to the next generation.

While a necessary part of a comprehensive financial plan, life insurance tends to be a topic that clients will avoid or put off – at times to their detriment. Many don’t want to think about the unpleasant situations – such as a sudden death or critical illness – that insurance can protect against. It’s also an ongoing expense that some may be reluctant to take on, especially if they don’t think that they will need it in the near term.

So, what is the best way to start the conversation about life insurance with both your current clients and prospects in a way that will convince them to take the needed steps to protect themselves and their family? Let’s look at some strategies to create a consistent prospecting process designed to help you grow this part of your business while adding value to your client relationships.

Take the Time to Educate Your Clients and Prospects

In general, people are wary of anything that begins to remotely feel like a sales pitch. Don’t start by talking about the product; instead focus on helping your clients or prospects understand why they may need to consider life insurance as an important part of their overall financial plan. Talk about how it can help them and share some real-life examples of how early planning has helped some of your clients when they most needed protection.

Most life insurance decisions take time for clients to make. Typically, it’s not a one and done conversation. Look for different ways to educate your clients over time. For instance, you can talk about it as an opportunity when you meet with clients for their annual review. Or as a recommendation for a prospect as part of an overall financial plan. You can also share information in your client newsletter, as part of your email campaigns or on social media. Informative articles or planning checklists can often help clients better understand why it’s important to protect themselves with insurance.

Increase Your Chances by Capitalizing on Key Moments in Your Clients’ or Prospects’ Lives

There are certain times in clients’ lives when they are more open to talking to an advisor about life insurance. Getting to know your clients or prospects well through ongoing, regular conversations and keeping track of important information or key events in a CRM system will allow you to better engage with them when these opportunities arise.

Common life events when people are more open to an insurance discussion include: getting married or engaged, having a baby, purchasing a home or vacation property, losing a friend or loved one, celebrating a significant birthday (i.e., turning 40, 50 or 60), getting a divorce or changing jobs.

Discuss Protection and Risk Management, Not Life Insurance

The decision to purchase life insurance is often an emotional one. If you mention the words “life insurance” too early in the discussion, most clients or prospects are likely to tune you out quickly. Pay attention to how you frame the conversation and the words you use throughout the discussion. Phrases like “protecting the people you love” or “taking care of those who matter most” are preferred, rather than rattling off the key benefits of a particular insurance product. You can also talk about things your client values, and that life insurance can help assure, such as making sure their children or grandchildren can afford a college education or easing the financial burdens of a spouse if the unexpected happens.

You can explain how insurance can help them reach their goals now. Insurance isn’t only a tool to protect against death or critical illness. Products are available that can offer your clients or prospects living benefits like providing liquidity for an emergency fund or supplementing retirement income.

Talking to your clients about life insurance is critical to ensure they are protected and can manage risk as part of a comprehensive financial plan. Creating a strategy for regularly integrating life insurance conversations into your client and prospect meetings and marketing materials will help keep the discussion going and allow your client time to consider their options and make a decision that works for their family.

For more information about Momentum Independent Network, contact Brian Neil at Brian.Neil@hilltopsecurities.com or 214-953-4190.

The paper/commentary was prepared by Momentum Independent Network (MIN). It is intended for informational purposes only and does not constitute legal or investment advice. The statements within constitute the views of MIN as of the date of the document and may differ from the views of other divisions/departments of affiliate Hilltop Securities Inc. In addition, the views are subject to change without notice.

Momentum Independent Network Inc. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. MIN and HilltopSecurities are wholly owned subsidiaries of Hilltop Holdings, Inc. (NYSE: HTH) located at 717 N. Harwood St., Suite 3400, Dallas, TX 75201 (214) 859-1800, 833-4HILLTOP. Member FINRA/SIPC

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The information contained within this document may change without notice and has been obtained from sources believed to be reliable, however accuracy is not guaranteed. Investments in securities involve risk. Securities investment values and returns are not guaranteed, and securities investors may receive less money than invested upon liquidation or redemption. Please refer to the offering documentation for terms, conditions, and a description of specific products.

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