TMK1432 0110TMK1446 0410
Needs-BasedSelling
TMK1432 0110
Sell Whole Life for permanent needs
Sell Term Life for temporary needs
Whole life vs. Term life
TMK1432 0110
35-year-old married man with a wife, two kids and a mortgage in Alabama. He has $100 to spend on life insurance.
Scenario 1Agent thinks the customer needs $50,000 of Whole Life$50,000 of Whole Life costs $76.86With his remaining money, he can purchase $50,000 Term 20 RC for $30.37.
Needs Based Selling
TMK1432 0110
Scenario 1If the customer dies in the next 20 years, his family receives $100,000.
$50,000 Whole Life+$50,000 Term 20 RC
In 20 years, the Whole Life policy will have a cash value of $9,396 and a reduced paid-up value of $29,050.
Needs Based Selling
TMK1432 0110
Scenario 2
Final Expense need $15,000$15,000 of Whole Life is $24.32 per month
With his remaining money, he can purchase $200,000 Term 20 RC for $75.78
Needs Based Selling
TMK1432 0110
Scenario 2If the customer dies in the next 20 years, his family receives $215,000.
Needs Based Selling
TMK1432 0110
Scenario 1$100,000 Death Benefit
+ $9,396 Cash Loan Value+ $29,050 Paid up value
Scenario 2 Needs Based Selling$215,000 Death Benefit
Needs Based Selling
TMK1432 0110
If your loved one dies in the next 20 years, which one do you want?
Needs Based Selling
TMK1432 0110
Insure the highest income earner first
Insure the spouse second
Insure children third
Who should I insure first?
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