Hegna's Hotseat

This is a Football: Back to the Basics of Life Insurance


ou've probably heard of Vince Lombardi, coach of the Green Bay Packer's championship team, but do you know how he started the very first practice of every new season? He'd walk onto the field holding a football and say, "Gentlemen, this is a football." Can you believe he said that to championship players every year! He always started with the basics. Think of me as your coach, and let's get back to the basics of life insurance. You've got to have basic conversations with clients, and you can do that simply by saying "There are two basic types of life insurance: term and permanent." Let me show you how.

Term insurance is for the short term. Think of it like renting. There is no equity or cash value. It will pay if you die early, but it won't pay if you die late. Less than 2% of term policies ever pay a death claim. That doesn't mean term insurance is "bad." It just means term shouldn't be your ONLY policy. Use term when you need extra coverage, when the kids are little, or if paychecks are small and bills are high. If term insurance is the only policy you have, you're likely to have a 98% chance of dying with no insurance in force. That's where permanent insurance can cover you. Permanent insurance is for the long term. It's like owning rather than renting, and it will pay WHEN you die.

Keep your conversations basic with clients. You can even look through all of the clients who have term policies with you around the anniversary date and call them to get back to the basics at the "start of the season." You don't have to try to sell them policies. You should empower them with all of the information you can so they're excited to buy.

Next, you’ll need to be prepared to have a conversation about basic TYPES of term and permanent insurance, but I have specific, simple language you can use for that too. I've created what is probably my most comprehensive presentation ever. I call it "The Three Pillars of Selling Life Insurance," and in this presentation, the first pillar is all about knowing your stuff. Join me for FREE on the next session, and I'll share the specific scripts you can use to talk to clients about the different types of insurance in your next meeting. I'll be going over annual renewable term policies, 5-, 10-, and 20-year term, return of premium term, universal life (fixed interest, variable, and fixed index), and whole life. Click here to see when the next session is being broadcast.

I hope to see you there!

-Tom Hegna

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