Jeff Stemler, CLU, ChFC – Sr. VP Advanced Planning
(Asset Marketing Systems)
Life insurance agents have historically sold life insurance as a “need” product. They start by offering a “needs analysis,” which looks at a family’s needs and obligations, and then they subtract liquid assets to determine the amount of life insurance one might “need.”
This “needs” analysis then dictates the minimum or least amount someone should have in force in the event of an untimely death. At Asset Marketing Systems, we like to think about life insurance a little differently.
If you don’t want something and yet you “need” it, how much are you willing to pay for it? Probably as little as possible.
In contrast, if there’s something you “want,” how much are you willing to pay for it? Probably whatever it costs.
When you discuss life insurance with your clients, it’s important to talk about how much they “want” versus how much they “need.” Focusing on how much protection they might “want” for their family to allow their loved ones to live the lives they envisioned is important. Painting that future life picture is paramount in changing their mindset.
The difference between needs and wants is quite pronounced, and people move in the direction of their wants much more rapidly than their needs.
The next time you’re discussing life insurance, talk about how much they “want” and not how much they “need” – try it out!