Use a discussion of Auto and Home Deductibles to sell more Life Insurance.

As insurance agents, part of our job is to explain complex concepts. I’ve always felt analogies were the easiest way to explain things. Using familiar concepts to make the client explore ideas in a different way.

Clients are very familiar with the concept that a deductible is the amount they will need to come up with in the event of a claim. They tend to like lower deductibles because many believe they will have a hard time coming up with a higher deductible of say $500, $1000 or more.

While most have an idea of what it will cost them if they wreck their new car, many clients are unaware of the actual amount their family and loved ones will need to avoid a dramatic change in their lifestyle in the event they died in the accident.

While having the discussion about what they want their auto and homeowner’s deductible to be, ask them if they are aware of what their life value deductible is. I define a life value deductible as the difference between the life insurance a client has at the time of death and the families actual cash needs. Often the difference between existing coverage and actual needs can be in the 100’s of thousands of dollars. If $500 or $1000 would be hard to come up with if the car is damaged, where will their family come up with 100-200K or more if they died in the wreck?

Without good planning the surviving spouse and dependents will often have to do without. This can cause serious hardships that could have been avoided. A quick question about deductibles can lead to a conversation and a fact finder. By using the client’s numbers, you can present a solution that makes the client’s life value deductible manageable for them.

Many P&C agents I talk to, avoid offering life insurance to their clients for a host of reasons. A good BGA will help eliminate the barriers that prevent an agent from offering the protection their clients need and deserve. If you’re looking for such a relationship with a BGA give us a call 402-498-8000 or email us at tjurek@wiigcodr.com.