Question: I know that annual life insurance policy portfolio reviews are important and can make me money too, but no one ever explained to me what to do. What do I say to get a review and what do I say when I get there?
Congratulations on being concerned enough about helping your clients and being their long-term advisor that you want to know about annual policy reviews. Let me see if I can help you get on the right track.
Annual reviews are important to the client who deserves to be updated on the goings-on around their portfolio, and they are important to advisors who can derive a lot of business and introductions from them. I know of a world-class, veteran, multi-Top of the Table MDRT advisor who still gets most of his business by doing them. If it works for him, it can work for you.
A LIMRA study once said that 62% of consumers didn’t know for life insurance nor why they had it. My observation is that the number might be a little low. Most people don’t know what they have but if they do, everyone wins.
The best way to get a review meeting is to ask simply: “Would you have any objection to reviewing your life insurance policies with me?” The magic of this question is that it’s a question where No, means Yes. No, I have no objection means Yes, you can review them. Many people say yes to this harmless question. When they do, you are in business.
Here’s a format to follow to walk them through their policies and give you a chance to make some recommendations. (I’ll make a few comments in brackets along the way to explain what we are doing.)
First things first. If all you do at a review is bash their policies and/or their past advisor, your reviews will be a failure. Instead, be encouraging and congratulate them on their wisdom in owning insurance. That will encourage them to do even more. Don’t be short sighted. Remember, most people buy life insurance 8 times on average during their lifetime.
I guarantee your prospect hasn’t bought their last plan.
Insurance policy portfolio review meeting questions and script:
I want to help you understand your insurance so you get best value for the money you invest. May I ask you a few questions?
1. Before we get started, how much time do we have today? (It’s always a great idea to know how much time you have so you can be on time.)
2. Do you have a will/POAs? Do you know how it relates to your life insurance?
3. What do you know about life insurance? May I help you understand it better? (Before you start telling them anything, be sure you know what they know. That way you show them respect.)
4. Do you see life insurance as an expense or as savings? Would you like to see it as savings? (You want their opinion.)
5. Would you like to know about how life insurance can cut your tax bill and fight inflation? (Tax-exempt cash value life insurance can change “always taxed money” into “never taxed money” because, when used as intended, it returns every dollar paid in and then some. You want to know if they like the idea.)
6. How do you feel about your life insurance? Why? (You just want to know their essential financial security philosophy)
7. What do you want your life insurance to do for you? (They may know what it is, but do they know what it can do?)
8. What do you think it’s doing for you now? Why did you buy “this” policy? (Is it still working for them?)
9. How do you feel about Life Insurance for your spouse? (You’re looking for belief.)
10. How do you feel about life insurance FOR children or grandchildren? (It’s a great topic if they can be interested.)
11. What concerns do you have about your insurance? (Do they see possible changes?)
12. Why have you bought life insurance in the past? Why do you think you would buy life insurance again? (Let them reveal their motivators?)
13. How did you decide on how much you would pay? How do you feel about what you pay today?
14. Are these all the policies you have, or do you have others? Why? (Good to know your competition.)
15. Do you have any disability insurance policies? What do you want them to do for you? Are you happy with them?
16. Do you have any critical illness insurance policies? What do you want them to do for you? Are you happy with them?
17. Do you have any other questions or comments about your insurance?
Then, you follow up on the discussion that will almost ways lead to new business. It’s a simple approach that will help them understand what they want today and in the future. And it all starts with “Would you have any objection to reviewing your life insurance policies with me?”.
This column by renowned advisor coach Jim Ruta was first published in the November 2023 edition of Insurance Journal magazine.
For more information on the tools to use to build your brand, check out www.advisorcraft.com/solis
Jim Ruta’s mission is simple – to preserve, promote and propel the financial advisor business. A former insurance advisor and executive manager of a 250-advisor agency, Jim is a highly regarded coach, author, podcaster and keynote speaker. He has spoken 4 times at the MDRT Annual Meeting including the Main Platform. Jim Ruta is an Executive Coach and Keynote speaker specializing in life insurance advisors and leaders. He works with top advisors around the world and re-energizes audiences with his deep insight and passion.
If you have a question for Jim, you may send an email to [email protected]
