In this episode of Submit to Bind we will follow up from Part 1 of “Everyone needs an Umbrella” where I talked about the 7 facts about liability umbrella policies as well as what you and your customers will be covered by having an umbrella. If you haven't listened to part one 1 I would stop here and go back and listen to it. Let's dive into how we can use our sales skills to convince our customers that “Everyone needs an umbrella.” Yes…. Even them.
There are three types of customers that don’t have an umbrella:
- Someone that has never heard of an umbrella before.
- Someone who had an umbrella but decided they never used it or it wasn't for them.
- Someone that doesn't believe they have enough assets to need one.
Ultimately not believing there is a need is the reason someone doesn't buy. So how do we convince them that “Everyone needs an umbrella?”
There are a couple of things we need to remember when asking our client to go on this trust journey with us. First, we need to have taken the time to build rapport with them while we are building a profile of their needs (Ep. 3 Pillar 2). Second, we need to be in the right mindset (Ep. 15 Pillar 5). We need to be so confident that this is the right produc, andd we are the person that should be talking with them about it that they see you as a trusted advisor. You should probably consider having an umbrella yourself. Once these items are in place, you are ready to ask your client the key question.
“Before I send these quotes over to you I do have one question. Have you ever heard of umbrella insurance before?”
Now I like the fact that the question is a little confusing. “Why would anyone want to insure an umbrella?” is what I want them to think. Generally, most people will say “no” or question, “what is that?”. We want them to open the door for us and ask us to elaborate and the questions, being a little confusing, gets us in that door. Once they answer, what you say next makes or breaks the proposal.
“Well Mr. Johnson, I may be judging a book by its cover here and if that's the case then I apologize. I am looking at your house, your cars and your neighborhood so I am guessing you have some money in savings, 401k, and IRA’s that you don't want to give to someone in the event you are in a bad accident?.
This question wrapped in a statement is designed to make anyone you are talking to realize that they have accomplished a lot in their life. Most people, even if they have saved very little, are very aware of how hard it was to get there and the idea of giving it away is a very emotional thought. If said the right way, the customer or prospect will respond, “yes that’s correct.”
“Mr Johnson, a liability umbrella policy is designed to cover you in excess of what your home and auto policy covers you for liability. This covers you in the event someone gets injured on your property if you or your wife were to get into a very bad accident, and they were to be severely injured or, God forbid, they died. An umbrella policy is usually less than a couple of hundred dollars a year. I will include an option in the package I build for you that includes the umbrella quote so that at least you can see what the cost is and if you decide not to do it now, at least you know what it will cost.”
It's okay to be graphic right now. Your client needs to see that the consequences of not being covered correctly can be life - altering. Remember, an umbrella not only covers you but also the person you hurt. You want to transition from your explanation right to letting them know you are going to include the quote anyway. Of course, if they have more questions, then take all the time to get into the nitty-gritty with them.
Depending on how they react to how I deliver the message is how I will game plan for presenting the quote to them (Ep 5, Pillar 3 Presenting). If they are very receptive and give me a feeling that they need this coverage no matter what the price, I will lead with the price that includes the umbrella. If when we end the conversation, they indicate that their primary concern is getting their current coverage taken care of first and are ok with me presenting a 2nd option, then I will start with the package that gets their needs met first but with the carrier I plan to present the umbrella with. I like to break down the extra cost for the umbrella in terms of how much more a month it will be.
“Mr. Johnson, you seem pretty excited about the pricing. However, to add the umbrella we talked about earlier and to increase the liability coverage on your auto to the minimum required to have an umbrella, the price is only $32 more a month.”
Now of course this strategy won't always be a win. Actually, it rarely will be, but if you commit to presenting an umbrella to every customer, you will get better and better. As you get better and better, your average client will be regularly exposed to higher levels of coverage and will land with higher coverage than they have now. Of course, there will be objections. There will be lots of objections. Remember your 7 facts. Usually, one or two of them will overcome any objection they have, and the client will be left with the option of being exposed to major liability issues and saving a little money or making sure their family's future is secure.
Lets go over the 7 Facts again:
7 Facts:- You don't have to hurt someone for them to sue you.
- If you kill someone in an auto accident, it does not matter how much money you have. They are going to come after everything you have and anything you will have in the future.
- If you can't pay someone what you owe them from a liability suite you can have a judgment filed against you that lasts until you pay them back or until you go bankrupt or die.
- If you have a judgment against you, you cannot participate in certain financial transactions like selling your home until you pay them back.
- Your wages can be garnished if you cannot pay your responsibilities.
- If you severely injure someone, and they cannot provide for themselves, you will want to take care of them and will live with the grief of not being able to as you live your normal life.
- If you kill someone and cannot make their children whole, you will live with that for the rest of your life.
Committing to presenting an umbrella quote to every client is big girl and big boy insurance sales. It also shows that you are willing to insure the client correctly even if it complicates your quick and easy home or auto policy. Remember, if you really get good you will have clients who want to have one and this can cause you to have to work a lot harder to find them the best deal. However, referrals from clients who own an umbrella are the type of referrals you can build a career on.
Everyone needs an umbrella. Get after it!