The Simple way to Select the Right Type of Life Insurance Policy

Here’s how you and your prospect’s can choose…

Isn’t the most basic job of a life insurance agent choosing the right life insurance policy for their client? To get the right fit for them in their circumstances?

Yet is there anything that causes more compliance grief than product selection?

Here’s a simple way to choose the right policy for your life insurance protection clients. Yes, of course, there is more to policy selection than this, but this simple approach will get you into the right ballpark.

Consider two criteria when selecting life policies: Money Available and Attention Required. Each is on a continuum from little to a lot. Here’s how it works. Draw yourself a chart. Money is on the horizontal axis. A little money on the left and a lot of money on the right. This is your assessment of how much money the prospect can spend on their essential financial security.

Next, Attention Required is on the vertical axis from a little attention on the bottom to a lot on the top. Attention refers to the amount of review and decision-making you and the client must invest in to ensure the policy works as intended.

The 2 axes give you 4 quadrants. Clockwise from the bottom left they are:

1. A little money and a little attention – this criteria suggests various term life insurance policies.

2. A little money and a lot of attention – Universal Life minimum premium – which is almost never a good idea because there are better options

3. A lot of money and a lot of attention – Fully Funded UL fits here. And

4. A lot of money and a little attention – describes whole life PAR to a T. It is the largest unmanaged asset most people will ever own. Policies like T100 and Whole Life Non-Par sit in the middle of the matrix.

The question is how much time do you and your prospect want to spend regularly and how much can they afford to invest? When you know, you’ll know.

Answer those 2 questions and you will never recommend the wrong policy.