I went on a joint appointment with an agent this week and simply used the life chart 1-2-3.
(1 – Find Need, 2 –Find Affordability, 3 – Design Plan)
The client said,
Client: “Mark your number, (1) FIND NEED was the exact same that another agent that went through a complete needs analysis with us. I came to 2M + including assets and work life insurance = 2.25M TOTAL NEED.
The other agent was at 2.3M also.
Mark: I asked, “What can you set aside on a consistent and monthly basis to attack this need (2) AFFORDABILITY?”
Client: They said, “We got a quote for $245 per month. We can afford this and need to budget for this.”
The client had a quote on email and showed me the charts. The client thought it was a term to age 80. Which it was, but with a 20-year level premium / cost $245 per month.
Then I layered/laddered two solutions (3) PLAN DESIGN.
1M 15-year lock
500K 20-year lock
500K 30-year lock / cost $200 per month
1M 15-year lock
1M 30-year lock / cost $250 per month
This took care of all the needs (1) AND was the same price as the competitor. Think about it. What did the client give up? Between year 15-20 they gave up 1M (which kids are at adult age by then). What did they gain? 10 extra years of 1M. They loved this solution and took an application. They went with second option after I discussed number (2) affordability.
Mark: I asked the clients, “We scheduled time for a financial discussion. Would you like to discuss how to meet your retirement goals faster than you ever imagined? Also, would you like to spend a little time discussing how to protect against financial devastation? May I ask which one is most important before we start; getting rich or absolutely, positively, guaranteed never to become poor?” They replied both and we laughed.
I went through the complete LID that is trained on www.lifeinsurancetrainers.com. I will give you something new I did below. But, before I do, the ending comment from the client was,
Client: “We just bought new home, two young kids, re-adjusting, but within a year or so, we want to plan to do this. Please plan our commitment level at 500-1,000 per month.”
I discussed at the term policy delivery, I would review this plan with them. Good news is you can convert one, any, or all these term plans into one of the world’s greatest strategies, no questions, at any time. They were thrilled then to have me, my term plans and my advice.
Here is new comment. I went to GOOGLE and typed in “world debt”. Here is what popped up: World Debt Hits Record $164 Trillion. The world’s debt load has ballooned to a record $164 trillion, a trend that could make it harder for countries to respond to the next recession and pay off debts if financing conditions tighten, the International Monetary Fund said.
I then showed them page 6 Volatility chart and told them to tell me today where we might be as of today.
Client: They said, “Way up from where it is now.”
Mark: I said, “Based on what was stated on GOOGLE search (Bloomberg.com article), are we primed for a recession? Are we primed for a recession that could be much harder to respond and rebound? Again, do you want to get rich or never be poor now?”
Client: They said, “We don’t want to become poor.” I said, “Exactly my feelings as well.” My next question was, “What are you doing right now differently that will protect you against a major recession?” You know the answer to this! Lastly, I asked, “I am going to show you one more thing that I want to leave you with between now and when we start a strategy that can protect against the five threats TV-FIL.”
Mark: “Let’s go to www.usdebtclock.org together. See these numbers at the top. We discussed all this when we discuss Taxes and if they were going to go up or down, right? You told me your income was $200,000 and your total debt, mortgage included was $800,000, correct? This is pretty normal, wouldn’t you say, that most of your friends have debt that is 3-5 times their annual incomes? Most everyone who has a mortgage debt falls into this average. Is it easy to pay your debts or is it a challenge? For most of us, if it was “easy” we would not have debt, do you agree? But let’s just agree it is “manageable”, o.k.? Now, on usdebtclock.org, scroll to the bottom with me and look at the US UNFUNDED LIABILITY and LIABILITY PER TAXPAYER. This is every baby, granny, man, woman, human that lives in the U.S. I am not here to scare you, but I want MY clients to be, not only PROTECTED from financial devastation, but ready for the OPPORTUNITY it presents. The US government is not 3-5 times their annual income in debt. Go back to the top and look at the gross revenues of $3.4T. Divide this into the financial PROMISES our country has made and is currently outstanding. This debt that amounts in 33 TIMES their income.”
Mark: “One last question, I promise. What would you do if you were 33 TIMES your annual income in debt? Exactly, you would file BK.” Something must change, and I pray that I can help you prepare for what might be in our financial futures. Thanks for your trust and for loving your family enough to protect the (1) NEED with term life insurance. Let’s continue the discussion and planning toward retirement
strategies we’ve discussed.”
I will leave you with this. Layering/Laddering term wins every time. It just makes since that you are filling the (1) NEED and (2) making it AFFORDABLE. This is EVERY household we are in, we should be pros for our clients when it comes to term. And lastly, no one is talking guarantees in the most volatile times in our lives. And we sell guarantees! WE can protect our clients and WE can help them grow their assets substantially, without all the risks!