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I am sure this has probably been covered, but I talk to a lot of agents that need help with this, so I figured I would give a few tips and let the other experts give some more tips!!!
Let's say you go in a house and they have a policy they got 1 year ago from Bankers Life. It is 50.00 for 10k. You can get the client 20k for 50.00. There are a few steps you need to take to make it happen.
First of all, DO NOT DOWN BANKERS LIFE (OR OTHER COMPANY)! These seniors don't know all the ins and outs like we do. Congratulate them for the decision to get life insurance in place! Then explain to them that the reason you represent so many companies is because no company is one size fits all. Then let them know that the policy that they have with Bankers Life is a good policy, but it is not a perfect fit for them!
Then show them what you can do for them. There is two options I always show. I show them how much the 10k would be with me...say $25.00. Then I also show them what they can get for the same amount they are spending. So $20k for the same $50.00. The reason this is important is because a lot of people will look at the $10,000 as more important than $25.00 per month.
The next step is to ease their mind. Let them know that you will handle the whole process for them. Get the application filled out and then do the phone interview (if your company has one).
After that the next step is to call into Bankers Life and STOP THE BANK DRAFT! You are not calling to cancel the policy. This is very important for a few reasons. One is because a lot of companies require cancelations in writing. What if you are 3-5 days out from their next draft? They probably won't process it in time. Also this allows them to continue their coverage in the grace period and a lot of times have your coverage and their existing for a little while.
Another reason you don't cancel is in case your company denies the new policy. You can easily get them put back on bank draft and you didn't mess up their situation. Just let the client know once you stop the bank draft that they will get a letter in the mail for 3 months (quarterly) payment. Just tell them to not send in the money and it will automatically cancel the policy.
Now let's say their policy is old enough to have cash value. You do the same steps as above. The only difference is you write out on a piece of paper to cancel the policy and return all cash value to the insured. Put their name/policy number on the letter and have them sign it. No need for you to sign it. You can take that with you and once they are approved as applied for, fax it in!
When you call the company to cancel the bank draft, it is best to ask them for their fax number while you are on the phone. Also get the current cash value amount if available. Keep in mind that polices have reduced paid up insurance, so you might want to find out that amount in case your client would rather have a paid up policy instead of the cash amount.
When doing a replacement it is good to call the client once approved and congratulate them on being approved! I tried to attach a Carrier Contact Cheat Sheet but it wouldn't let me, so if you want it feel free to email me and I will send it over.
I hope this helps some new agents when they are in the house!
[email protected]
Let's say you go in a house and they have a policy they got 1 year ago from Bankers Life. It is 50.00 for 10k. You can get the client 20k for 50.00. There are a few steps you need to take to make it happen.
First of all, DO NOT DOWN BANKERS LIFE (OR OTHER COMPANY)! These seniors don't know all the ins and outs like we do. Congratulate them for the decision to get life insurance in place! Then explain to them that the reason you represent so many companies is because no company is one size fits all. Then let them know that the policy that they have with Bankers Life is a good policy, but it is not a perfect fit for them!
Then show them what you can do for them. There is two options I always show. I show them how much the 10k would be with me...say $25.00. Then I also show them what they can get for the same amount they are spending. So $20k for the same $50.00. The reason this is important is because a lot of people will look at the $10,000 as more important than $25.00 per month.
The next step is to ease their mind. Let them know that you will handle the whole process for them. Get the application filled out and then do the phone interview (if your company has one).
After that the next step is to call into Bankers Life and STOP THE BANK DRAFT! You are not calling to cancel the policy. This is very important for a few reasons. One is because a lot of companies require cancelations in writing. What if you are 3-5 days out from their next draft? They probably won't process it in time. Also this allows them to continue their coverage in the grace period and a lot of times have your coverage and their existing for a little while.
Another reason you don't cancel is in case your company denies the new policy. You can easily get them put back on bank draft and you didn't mess up their situation. Just let the client know once you stop the bank draft that they will get a letter in the mail for 3 months (quarterly) payment. Just tell them to not send in the money and it will automatically cancel the policy.
Now let's say their policy is old enough to have cash value. You do the same steps as above. The only difference is you write out on a piece of paper to cancel the policy and return all cash value to the insured. Put their name/policy number on the letter and have them sign it. No need for you to sign it. You can take that with you and once they are approved as applied for, fax it in!
When you call the company to cancel the bank draft, it is best to ask them for their fax number while you are on the phone. Also get the current cash value amount if available. Keep in mind that polices have reduced paid up insurance, so you might want to find out that amount in case your client would rather have a paid up policy instead of the cash amount.
When doing a replacement it is good to call the client once approved and congratulate them on being approved! I tried to attach a Carrier Contact Cheat Sheet but it wouldn't let me, so if you want it feel free to email me and I will send it over.
I hope this helps some new agents when they are in the house!
[email protected]
