Ten Reasons to Get Rid of Illustrations in Life Insurance Policy Reviews
Life insurance policy reviews are needed, and they’re a terrific way to attract new clients. Disappointment in the performance of life insurance products often stems from the misuse of illustration comparisons. Here are six reasons why life insurance agents should stop using illustration comparisons in policy reviews.
Illustrations are often based on hypothetical situations. Projected policy values are calculated using assumptions – not truths. Assumptions can be manipulated by the insurer or the broker.
Illustrations are often comprised of hundreds of numbers, and based on thousands of calculations. Explaining all this data to a client is challenging, and can lead to misinformed decision making.
Wastes Client’s Time
Illustration comparisons require explanations which wastes the client’s and your time.
Hinders Relationship Building
Most insurance business comes from referrals, and referrals come from building a solid relationship with your client. A good relationship requires trust and faith. To earn your clients trust, you need to share the truth. Comparing illustrations of hypothetical policy values hides essential information from your client. Instead of creating an illustration, answer questions customers want to know.
Increases Risk of Dissatisfaction
Hypothetical comparisons encourage behavior that might not be in the client’s best interest. When clients make uninformed decisions, their risk for underperformance and disappointment with the product increases.
Life insurance policy costs vary by as much as eighty percent. Hypothetical life insurance comparison illustrations combine actual costs with performance assumptions. Once mixed, these illustrations often hide high costs.
Instead of using illustrations, use detailed expense pages. Measure these costs against alternatives to identify truly competitive products for your life insurance clients. You’ll get more referrals by building good relationships with your clients built on trust.
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