Advisor Today - May/June 2015 - (Page 64)

back page By Marvin Feldman, CLU, ChFC, RFC Why Don't People Buy Insurance? One reason is we may be focusing on the product instead of on the concept. W hy do people buy life insurance? Because they want it? No. Because it solves a problem they perhaps did not understand or even know they had until you explained it to them. These may be simple problems like paying off debt or paying for a funeral. Perhaps it's ensuring that their children will go to college or that the family will have sufficient income to maintain their lifestyle if the breadwinner is gone. It may be a more sophisticated problem, such as business-succession or estate planning, but in each event, there is a problem that requires a solution-a solution that is costeffective and affordable. A solution, when compared to other alternatives, is the most efficient. That solution is life Insurance. Life insurance can solve these problems for pennies on the dollar, and if your client is using permanent life insurance products, the premiums paid may build substantial cash values that can be used as emergency funds, for college education, as a down payment on a house or perhaps as a retirement supplement. I've used my cash values for all of these things except retirement, and when that time comes, I may use them for that too. As professional agents and advisors, we need to remember that when we are meeting with clients and prospects, we must first make them aware of potential problems they might have and then present an appropriate solution for those problems. Problems and solutions go hand in hand and every problem has a price tag and a solution. Many times, the prospect's solution is 64 ADVISOR TODAY | May/June 2015 We must remember that we need to sell the concept, not the product. to do nothing, but this may be the most expensive solution. The need to sell the concept A mistake I see many agents make is presenting a solution before the prospect understands what the problem is. We must remember that we need to sell the concept, not the product. The product is the solution. The premium is the price tag for the solution. If your prospects or clients don't buy the concept, the details are irrelevant. The following are some facts from the 2014 Life Happens/ LIMRA Barometer Study, which you need to understand when dealing with your prospects: * 1 percent of U.S. adults say life 8 insurance is something "most people need," but only 38 percent of U.S. adults have individual life insurance. * 3 percent of U.S. adults say life 6 insurance is something "they personally need," but only 24 percent of U.S. households plan to buy life insurance in the next year, even though 27 percent of U.S. adults say they "don't have enough" life insurance and another 9 percent are not sure if they do. * 0 percent of partnered/married 3 households wish their spouse/ partner would purchase more life insurance. * 3 percent (100 million) of U.S. 4 adults have no life insurance (the 100 million is based on 234 million adults ages 18 and older as of December 2013, U.S. Census current population internet release). What these facts tell us is that we are not connecting with our prospects on an emotional level, because if they understood their protection problems, the purchase of the insurance would become a much easier decision. Emotional stories, such as those at Life Happens (, are perfect examples of the tools you should be using to help connect with the emotional side of your prospects and clients. Prospects don't buy based on statistics. They make an emotional decision and justify that decision with the illustrations we all use. But it is the concept we need to sell, not the illustration. Concentrate on the problem solving and the concepts if you want to achieve a higher level of productivity and professionalism. Marvin H. Feldman, CLU, ChFC, RFC, is principal of the Feldman Financial Group in Clearwater, Fla. He is president and CEO of Life Happens and a member of NAIFAPinellas. You may contact him at 727-723-9020.

Table of Contents for the Digital Edition of Advisor Today - May/June 2015

From the Editor
New Products
Investing with Purpose
Ascending to Greatness
DI Insurance Saves a Family—Twice
Hack-Proof Your Social Media Site
A Unique Asset That Is Often Overlooked
How I Sell Whole Life
When Being Wrong Is Right
Selling Life Insurance Today
Retirement Planning for Today’s Boomers
Repotting Your Career
NAIFA Government Relations
After the Sale
Marketing to Millennials
How to Win the Hispanic Market
In Step with a Winner
Work for Free—and Make Lots of Money Doing It!
Creating a Center of Influence
Lighter Side
Advertiser Index
Back Page

Advisor Today - May/June 2015