BETTER PROSPECTING: Foolproof Script for Selling Return-of-Premium Term Insurance

It’s time to get real about an insurance career. It’s time to go to work. Leave all of the shiny new objects alone. Life insurance is the most gratifying product to sell. I love life insurance. It’s a wonderful product. But, it must be SOLD. Would you be willing to approach people with the following offers?

“Would you consider talking to me about free life insurance? Or, would you trade a cup of coffee to educate your kids, pay off all your debts, and pay your bills for five years? Or, if I could show you how to have a happy wife for the price of a cup of coffee, would you be interested in finding out how?”

I know what you're thinking: "You've got to be kidding." Actually, no, I'm not. If you don't talk with five people a day, you're not interested in being successful in this business. As I've mentioned before, I love term insurance. It allows applicants to purchase the amount of insurance they need rather than what they can afford. Young people especially need inexpensive coverage. It is very easy to sell. Have you joined the "app-a-day" club? Why not? Because, you haven’t made the decision yet.

Let's say you write just one policy per day at only $80 per month premium coverage. That's $960 of annual 238 premiums per day. There are 251 selling days in 2021, not including holidays. If you take out 20 days for vacation, that leaves 235 selling days. 231 x $960 = $221,760. With a standard street contract at just 90%, that's $199,584 of yearly income. After 10 years, you'll have 2,350 clients, assuming nobody dies. With conversion privileges and annuities, plus new opportunities with the same clients, well, you get the picture!

Here is a simple presentation that takes 20 minutes. It will close almost every time. The setup: A young couple in their late 20s or early 30s. Both are employed, they own a home, and have two scrappy little kids. Your presentation is on return-of-premium term insurance. Develop a single sheet with a list of all possible expenditures that they could have each month. If you don’t have one, no worries, I do. Leave the amounts blank. Just list the categories, like mortgage, electricity, cable, phone, food, etc. You will have more than 30 categories. Ask them to tell you what they are spending each month for each one. Fill in the blanks. Fill in the total. Let's say it's $5,000 per month. The next question is critical. You must attack his desire to buy a new boat, new golf clubs, greens’ fees, etc. But, you can’t do that directly. You must come at him obliquely. You then ask this question exactly in these words: "Mr. Smith, how long do you want your wife to wait before she must find another husband to pay the bills and be the father to your children?" Do not look at her. She will be staring a hole in the side of his head waiting for an answer. He will say "Forever." You then help him off the hook and settle on five years. Then ask them how much their debt totals, including the outstanding mortgage. With that done, next ask them how much they think it will cost per year to send their kids to college. Multiply by four and write that down. Annualize the monthly amount, multiply times five for five years, and add the three together. You now have a thumbnail of their insurance needs.

Let's say that the total is $750,000. You have now laid out, very clearly, what their need is. I have rarely found a wife who didn't want life insurance on her husband. It's almost always the husband who resists. Men usually think logically, and you have just shown him the problem in writing. Let's say the premium for him is $75 per month on a ROP term policy for 30 years. You now multiply 75 x 360, which totals $27,000. 240 You then say: "Mr. Smith, if you die, your wife will be able to pay the bills, educate the kids, and pay off all your debts. If you don't die, you will have spent $27,000. Do you think it's fair that the insurance company keeps your money?" He will say "No." Then you say, "We don't either. If you don't die in 30 years, the insurance company will write you a check for $27,000. Do you think that's fair?" He will say, "Yes!" He will be happy! She will be happy! Write them up! Do this every day for a year, giving you $203,000 in income. Go out for dinner and celebrate your new career. By the way, if you need the worksheet, let me know.

Put five business cards in your pocket or purse every morning. Then leave your home. Do not go home until you have rid yourself of those five business cards. If it takes all day, so be it. Get your car repaired, tires rotated, dental appointment, doctor appointment, go shopping, stop for coffee, go, go, go. You can meet people even in a pandemic. ALL OF THEM NEED LIFE INSURANCE!

As of this article there are only a few insurance companies that write ROP life insurance. I have a contract with the least expensive one. So, what if ROP goes away. There’s always straight term. I walked into a jewelry store and asked for the owner. Three hours of work later, including travel time, I made $22,500 on one term insurance sale (30 year level) to the owner of that jewelry store. You can do this.

Call me if you are stuck, discouraged, disillusioned, frustrated, skeptical. We can fix that. (904) 343-3532.

Kim Magdalein is an advisor with 30 years of speaking and writing experience about prospecting and marketing in the industry. Co-founder of Seminars for Less nearly 20 years ago, he is a leader in seminar marketing, assisting financial advisors and insurance agents. Contact Kim at