Transitioning from P/C to Life Insurance Sales

Use the approaches described in this article to pivot from a P/C sale to a life insurance sale.

By Ray Vendetti, CLU, ChFC

Since I entered the business over 30 years ago, the most common mystery has been to find the magical “pivot” sentences to help transition from one product to another, especially from P/C to life insurance. Here are some powerful and compelling approaches that you can use to help make your transitions with clients and prospects more successful.

First, let’s look at this from the prospects’ viewpoint. The mindset of most prospects is that of sales resistance. They usually have or build a sales barrier when approached about something that was not top-of-mind.

When selling insurance, agents usually move from one P/C product to another by saying something like, “I’d like to give you a free quote [does anyone really charge for a quote?] on your auto/home renewal. Maybe we can save you some money.” Sometimes effective at obtaining an “X” date, this approach essentially puts forth the idea that the only reason for changing is price. In other words, if we can save you some money, you should switch; otherwise, we will see you same time next year.

Other approaches stress advantages like multiple policy discounts and ease of service when everything is with one carrier. But when many prospects hear any of these sentences, they think we want to sell them something and raise their barrier.

Here’s a way to break that barrier. Think about what happens when there is a weather warning issued in your area. For instance, in New England, when a major snowstorm was forecasted, people went to the grocery store only to find no bread, toilet paper, bottled water, candles, etc. These items were missing because many people rushed to the stores and bought them because they did not want to take the chance of running out during a storm.

Let’s apply this thinking to our business.

A mono-line customer can be approached in this way: “Many of our customers take advantage of our multiple Specialty Premium Discounts when they have both auto and home insurance with us. Would you like to hear more about how we can apply these discounts to your policies?”

If you’re like many of my coaching clients, you fail to write policies for about 80–90 percent of the leads or “call ins” you receive. When prospects say no, we might end these unsuccessful calls with, “Is it OK if I check back with you in 6 months or a year?” Everyone says it is OK, but how many times do you call someone back in just a week and hear, “Who is this again, and what is this about?” Calling back in six months is seldom successful.

Instead, when you’re finished quoting and have exhausted all the reasons you have for them to switch in spite of your high rates, try this approach: “Sorry we couldn’t do business today. But you know many of our customers have checked rates with us several times before becoming our clients. Your rates may go up, ours may go down, but over time, we’ve made clients of those who checked with us several times. How would you like me to check back with you in 6 months?”

People who tell you to just ask everyone and you’ll sell a lot of life insurance are only half right. Asking in the correct manner will get you into lots of life insurance discussions, which may lead to more sales.

But simply asking “Who handles your Life?” or “When was the last time you reviewed your Life?” usually gets you nowhere because it is so easily met with responses like, “I’m all set” or “I have it at work.”

<insert pull quote:>

Asking in the correct manner will get you into lots of life insurance discussions, which may lead to more sales.

Here are some approaches you can use as you try to sell life insurance to various prospects.

A young couple who is buying homeowners insurance from you for their new home: “Most of our customers take advantage of our Specialty Mortgage Life Products for young families like yours. They help pay off the mortgage in the event of the death of one of the spouses. Would you like more information on these specialty Life policies and how they might help pay off your mortgage if one of you were to die?”

Older customers who may have grandchildren: “Most of our customers take advantage of the Specialty Life Products we offer our customers for life insurance on grandchildren. These special products not only provide for valuable protection, they also help policy owners to accumulate cash as they get older. Many grandparents tell us that these make wonderful gifts. Would you like to hear more about these specialty Life products available to you?”

Customers who have eliminated a car loan from their policy: “When they pay off their car loan, most of our customers set aside some of their monthly gain for one of our Specialty Retirement Policies that we offer our customers. Would you like to hear more?”

These are just a few of the examples you can use. So, ask everyone, but be sure to ask in a manner that leads them to believe they may be missing out on valuable opportunities that your customers are already taking advantage of.

Good luck and GREAT selling!

Ray Vendetti, CLU, ChFC, is with Vendetti Insurance Services in San Diego. He is a well-known coach, speaker and author. Contact him at 760-443-1719 or at ray@rayvendetti.com