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The telephone was ringing as I opened the door
to my office one Monday morning years ago and far away. It was early in my insurance
career and I was designated as "Agent of the Day", eager to handle any
call which might lead to a new client.
The caller was a 64-year-old gentleman checking his fringe benefit options from his
employer, Northwest Airlines, as he neared his retirement age of 65. Specifically,
he wanted to know how much it would cost to convert his temporary $5,000 group life
insurance, which was underwritten by my parent company, to a permanent plan. The
excitement of his "Big Day" waned as I explained he could convert his plan
for $320 per year, which represented about three weeks pay back in 1969. Rather than
pay that "costly" premium, the man chose to die without it!
The choice wasn't made when he called, however, it was made years earlier when he
opted to place all of his life insurance protection in the group temporary plan at
work. As I hung up the telephone, I couldn't help but wonder if his choice would
have been the same if I would have had the opportunity to give him some informed
advice when he first enrolled.
My recommendations would have stressed that permanent insurance - whole life, universal
life, or variable universal life - are specifically designed to remain in force for
the person's entire life, even if he or she lives beyond their "life expectancy".
Temporary protection such as employee group insurance is also specifically designed.
It, however, is designed to be gone when you need it the most.
Mr. Arthur L. Williams, Associate Professor of Insurance and Real Estate at Penn
State University, published and article for the Journal of Risk and Insurance
a few years ago regarding the fate of term life insurance policies. Here are two
of his interesting conclusions:
less than one policy in ten survives the period
for which it is written;
and, only 1% of all term life insurance ever manifests itself in a death claim!
The average male life expectancy is age 84, yet the average group life insurance
walks out the door at age 70! We can not allow our clients to gamble their families'
financial security solely on life insurance programs that come up fourteen years
short on the mortality table!
To enhance our quality of advice and drive this concept home, consider inserting
this paragraph in your Financial Advisory Proposals:
"Your current life insurance protection is
a temporary plan owned by your employer. Often times you can not assign the benefits
or pledge it as collateral for loans. In addition, your insurance will cease when
you terminate your employment or retire. You should strongly consider applying for
permanent life insurance that will remain in force at least through your life expectancy."
Our clients' desire for life insurance does not cease until the day their hearts
stop beating. Don't allow them to outlive their life insurance! Present a permanent
solution for their permanent needs.
You will be happy you did!
Jim
McCarty, CLU, RHU, LUTCF, is the author of the fast selling book "Above
The Line...Scorching Strategies for Sizzlin' Disability Insurance Sales Success". For the past 25 years, he
has been a professional sales trainer, speaker and consultant specializing in the
insurance industry. Jim frequently appears as a main platform headliner and has been
a presenter at three Million Dollar Round Table annual meetings. Jim recently was
presented with the coveted Ernest E. Cragg Ambassador Award by the Life Underwriter
Training Council (LUTC). He shares his experience through dynamic speaking engagements,
hard-hitting audio tapes, and informative, nationally published sales achievement
articles. Jim is Vice President of Insurance Sales for the Eastern United States
at Express Financial Advisors.
SIZZLIN' SALES SUCCESS
jimmccarty@ix.netcom.com
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