Need Help Replacing Policies

summerof18

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Since I have been selling FE for 6 months now I have only replaced a couple policies. I don't have much confidence in doing so though because I lack the knowledge.

I do have an IMO to ask advice for but I always enjoy everyone's help here on the forum, so can everyone tell me their stories, scenarios or examples of why and how they replaced certain policies?

I appreciate it, thank you!
 
Replacing starts with the 3 questions. Once you find out why you're there, then you know if they already have coverage and are then looking for a better deal/value. The pitch will then be slightly different from that if someone that has no coverage.

Usually I will go through the basics of what I can do to help, then find out about their health. Get them to get up and get their scripts. Then later when you ask/tell them to go get their policy, they're already used to getting up and doing what you say. If they really don't have it, call in and find out what they have. Put their company on speaker so they hear it.

Explain to them, that what they have might have been the best they could have gotten back then or that it was the best the agent could offer. Then, reinforce the fact that you have access to every company out there and can see if they can get a better value.

You should already know what they qualify for, so run some numbers. Always first try to offer them something for the same monthly premium, not the same face amount. People are inherently greedy, so getting more for the same amount sounds better than getting the same face for less money.

So if they had 10K for $50/ mo, show them all the benefits they get by going with you (even if they are the same type of policies) and then show them that $50/mo will now get them 12K with the new program.

Then start writing. "Mrs Client, who would you like to leave the money to after you pass?"
 
I completely agree.

I'll add that I run an fex quote for T/NT and level/graded, before I go into the home to know approximately what 10k will cost them for all 4 of the possibilities with my companies. If you already have an idea of what you can do for them, you'll have that much more confidence.

My lead in is something like, "well these are decent policies...they're just a little high...I think we might be able to get you a little more value" that being said I've got Christian Fidelity in my bag...not a lot of people want to write'em, but if it's the only way to write it, I'll do it. Price can't be beat.
 
Replacing starts with the 3 questions. Once you find out why you're there, then you know if they already have coverage and are then looking for a better deal/value. The pitch will then be slightly different from that if someone that has no coverage.

Usually I will go through the basics of what I can do to help, then find out about their health. Get them to get up and get their scripts. Then later when you ask/tell them to go get their policy, they're already used to getting up and doing what you say. If they really don't have it, call in and find out what they have. Put their company on speaker so they hear it.

Explain to them, that what they have might have been the best they could have gotten back then or that it was the best the agent could offer. Then, reinforce the fact that you have access to every company out there and can see if they can get a better value.

You should already know what they qualify for, so run some numbers. Always first try to offer them something for the same monthly premium, not the same face amount. People are inherently greedy, so getting more for the same amount sounds better than getting the same face for less money.

So if they had 10K for $50/ mo, show them all the benefits they get by going with you (even if they are the same type of policies) and then show them that $50/mo will now get them 12K with the new program.

Then start writing. "Mrs Client, who would you like to leave the money to after you pass?"

Great. I would add, early on in process get the names of the beneficiaries. You want them involved and getting them named does that. Then when you show them how much more death benefit they get for that $50 ask if they would like beneficiary (say names) get $2K more. There is your yes and you can start writing the ap.
 
All great advise.

Assuming replacement is the ethical solution to their problem.

Another question I ask early on is if the old agent has done a good good
Job of staying in touch. Normally that is a a big no. Helps to poison the well. And sets me up as the better value.
 
At what point are you all talking about the cash value in their old policies? At "all" times are you using this as leverage or sometimes are you only replacing the policies because what you have has turned out to be cheaper anyway without even using the cash value?

For instance, I met a man yesterday who had a small 2k policy with foresters for $15 that he had only had for 2 years. To me it seemed silly to replace since he only had it for a couple years (am I wrong?). So What we did end up doing was just getting an additional 2k with UOO for an additional $18. (It's all he could afford). I'm not positive I did the right thing, please advise.
 
At what point are you all talking about the cash value in their old policies? At "all" times are you using this as leverage or sometimes are you only replacing the policies because what you have has turned out to be cheaper anyway without even using the cash value?

For instance, I met a man yesterday who had a small 2k policy with foresters for $15 that he had only had for 2 years. To me it seemed silly to replace since he only had it for a couple years (am I wrong?). So What we did end up doing was just getting an additional 2k with UOO for an additional $18. (It's all he could afford). I'm not positive I did the right thing, please advise.

Bravo. Replacement isn't near as common as people would want you to think. But there is almost always room to improve the situation.
 
At what point are you all talking about the cash value in their old policies? At "all" times are you using this as leverage or sometimes are you only replacing the policies because what you have has turned out to be cheaper anyway without even using the cash value?

For instance, I met a man yesterday who had a small 2k policy with foresters for $15 that he had only had for 2 years. To me it seemed silly to replace since he only had it for a couple years (am I wrong?). So What we did end up doing was just getting an additional 2k with UOO for an additional $18. (It's all he could afford). I'm not positive I did the right thing, please advise.

In that situation I would have seen what 4K would have cost him. Probably around $30. So you could have conceivably offered him $4.5K for the same amount that he's paying now and twice the commission.

But a sale is better than no sale.

I do need to start using the CV more. I always seem to think of it as an afterthought after I've already sold the new policy.
 
At what point are you all talking about the cash value in their old policies? At "all" times are you using this as leverage or sometimes are you only replacing the policies because what you have has turned out to be cheaper anyway without even using the cash value?

For instance, I met a man yesterday who had a small 2k policy with foresters for $15 that he had only had for 2 years. To me it seemed silly to replace since he only had it for a couple years (am I wrong?). So What we did end up doing was just getting an additional 2k with UOO for an additional $18. (It's all he could afford). I'm not positive I did the right thing, please advise.

You sound more like an Insurance Agent than a FE saleswoman. I see that as a plus.

Lee
 
Since I have been selling FE for 6 months now I have only replaced a couple policies. I don't have much confidence in doing so though because I lack the knowledge.

I do have an IMO to ask advice for but I always enjoy everyone's help here on the forum, so can everyone tell me their stories, scenarios or examples of why and how they replaced certain policies?

I appreciate it, thank you!

For me it all starts with with the why. Why did you sned in the card? Why did you have me here?

If they don't have any insurance at all, { and that's getter more rare all the time}, then I know they sent in the card because they need some insurance.

If they have insurance then why am I there? Did they want to add to it? Do they think they are paying too much? Is it graded or ROP and they want to see if they can get better? Is it term and they want whole life? Is it whole life and they want term?

Without those answers there is no business there, replacement or otherwise.

Once knowing the need/want then I can offer solutions. Maybe it is best for them to replace and have one policy with more coverage and get the cash and maybe it's not. Maybe it's in their interest to replace it with the same amount of coverage but lower price and maybe it's not.

Yesterday I met with a lady that had MoO's GI. $10,000 policy. It's a little over 2 years old so full force. She didn't have to have ROP but she only qualifies for graded now with AmCon. I advised her to leave her MoO alone and add coverage, {what she wanted to do}, with a separate policy.

We did the phone interview and has the AmCon graded now too. A friend of her's that was there the whole time asked me if it would better and cheaper to just have one policy instead of the two. I told it would be if the lady could qualify for immediate now but sincve she couldn't the way we were going was the best way to get what she wanted without putting her at additional risk.

I met with a couple on Wed. and the wife had no insurance. The husband had a $10,000 whole life that was 3 and half years old. Their "why" was her. But after we got her application taken care of he wanted me to see if I could save him money. I couldn't. The best I could do was $5/mo more for the same coverage but he had $600 cash value in his policy. He semed like that was a good idea to him. I'm not sure his health is as good as he says it is so I advised him to leave it alone for now and think about it. I did tell him that when I brought his wife's policy to them that we could revisit it and see if he still wanted to change. Another issue was that we were in Ky and Settlers looked to be the best fit for him and they won't allow replacements here.

I called the lady this morning to tell her that her policy is approved and she told me that her husband does want to get the cash value.

Bottom line is that every situation is different. Also, is better today worth the risk of a new contestability? You have to consider all pertinent information before giving advice. But without the "why" none of it matters.
 
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