Recommending Life Insurance Products to Clients: The 3 P's Approach

Is there a process I follow for recommending life insurance products to a client? The answer is yes, I follow the 3 P’s of placing a policy.

A common problem life insurance agents encounter is getting stuck selling the same life insurance products. They often offer only one or two products because they are comfortable with them and understand how to articulate their benefits and payouts. Typically, these are a term policy and a permanent policy. Agents are proficient at selling and offering one type of term and one type of permanent policy, believing these are the best for their clients because they can explain them well.

Another issue arises when agents sell a life insurance policy that is out of a client's budget. When clients can't afford the policy, it places a financial strain on the family, often resulting in the policy being canceled.

Lastly, agents often don't take the necessary time to help clients plan for their future. Instead, they sell what they believe the client needs, using fancy tools and resources like personal needs assessments or needs calculators to show the client what they need for life insurance. In these scenarios, the client has no input in creating a plan for their future.

To address these issues, I recommend that agents follow the 3 P's for placing a policy. Adhering to these principles will help agents sell more life insurance and offer better policies for their clients.

1. Plan with the Client

First, establish a plan with the client. Take the time to plan together, allowing the client to lead the discussion. By letting the client lead, the plan becomes their idea of what they want their future to look like if someone were to pass away. This approach enables them to purposefully plan now; rather than impulsively trying to make it work. Help the client by asking a simple question after finding out how much life insurance they already own: “If your spouse were to pass away tomorrow and you received a $100,000 check, what would you plan to do with the money?”

This question prompts the client to think about what they would do with the money, putting them in a mindset to create a plan. If a client doesn't own any life insurance, you could ask, “If your spouse were to pass away, what do you plan to do for you and your family to make things work?” Once the plan is their idea, you can guide them in creating it based on what you've seen other individuals do.

2. Establish Affordable Payments

The second P is helping the client establish affordable payments. Ensure the client can truly afford the policies you recommend. If something happens to the family, such as a medical emergency, the life insurance payment should not create a financial burden. Ask questions to challenge the client on the size of payments they claim they can make.

3. Choose the Correct Products

The third P is choosing the correct products. There are many life insurance products on the market, and I invite you to learn about all of them. Different life insurance policies have different uses in various client scenarios. As an agent, you need to match the product that fits within the client's budget and best executes the plan. By following these three steps—planning, establishing affordable payments, and choosing the correct products—you can ensure the product is a good fit for the client.

As you practice these steps, you'll see that different life insurance policies are suited for different client scenarios. Matching the products to the appropriate plan will help you do what's best for the client in the long term.

If you're struggling with life insurance and want more tips to help you place more policies, comment with the words, “life insurance.” We can meet for a top performance call and discuss ways to help you sell more life insurance policies in your multiline agency. Study your life insurance products and start executing the 3 P’s of placing a policy. See how it helps improve your client relationships and increase your sales.