argue they can’t afford protection, you can counter that they can afford it, but they haven’t prioritised it. Many people will not be aware of what they actually spend their money on and the types of things they wouldn’t be able to afford to do if they were unable to work or earn an income. By demonstrating this to them, you can clearly highlight the need for Income Protection. Simple tried and tested sales concepts, which advisers can use to help paint a picture to customers, are often the most powerful and effective techniques in highlighting the protection need. For example, presenting the good old goose and the golden egg theory, which may appear at first sight to be a bit cheesy, is actually a powerful technique. When asked people usually say they’d protect the goose which produces the golden eggs, but in reality they tend to only protect the golden eggs, i.e. the TV, the car, the mobile phone and so on, but not the person who earns the money to pay for all these things!
Another old favourite of mine is the cash machine example. If you asked your customers whether they would insure a cash machine in the corner of their living room, which gave out cash every Friday night, I’m pretty sure they’d say yes. Well, they are that machine!
idenTifying exisTing BenefiTs
Once you have highlighted the need for Income Protection, you may find you come across another type of objection, where your client already believes they have financial protection in place – either through other products they have, through their employer or through the State benefits system. It is important that you find out what cover your client actually has in place and whether this cover is adequate, in order to overcome these barriers.
For example, some of your clients
may already have Mortgage Payment Protection Insurance (MPPI). However, MPPI usually only covers the monthly cost of the mortgage, whereas IP can provide insurance not only to cover this but also any other debt repayments, bills and general living expenses. Your client may well also believe that they will get sick pay from their employer, but is this really the case? Eleven million people think they would be entitled to sick pay through their employer but the reality is shockingly different with only 1.8 million actually getting some form of benefit through their work. It is clear that there is a real misperception about the level of support many employers actually provide. You should explore this properly with your clients – find out how much their employer would pay, and for how long? Some IP providers have developed Employee Benefit Form templates, which your clients can use to find out their exact entitlement.
Many clients also believe that they could always rely on the State. However,
the recent Welfare Reform changes have made it harder for people to qualify for State support. Claimants now have to undergo stricter medical tests, meaning it’s more difficult for people to qualify for the limited benefits available – two thirds of claimants are in fact unsuccessful according to Swiss Re Term and Health Watch 2007.
free suPPorT
By using sales techniques such as those outlined and by developing a robust sales process, you will minimise and be able to more confidently overcome these typical objections. Many providers provide free support to help advisers brush up on selling techniques such as these, including online training sessions where you don’t even have to leave the office to take part.
I encourage you to make full use of the support that’s on offer. By continuing to hone and improve your selling techniques, you can boost your income through protection sales and better protect your client’s.
mortgage introducer JUNE 2010 35
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