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Needs-BasedSelling

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Sell Whole Life for permanent needs

Sell Term Life for temporary needs

Whole life vs. Term life

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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

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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

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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

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Scenario 2If the customer dies in the next 20 years, his family receives $215,000.

Needs Based Selling

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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

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If your loved one dies in the next 20 years, which one do you want?

Needs Based Selling

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Insure the highest income earner first

Insure the spouse second

Insure children third

Who should I insure first?