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Use a Needs Analysis With Your Clients

Excerpted from our new sales book, learn to use the needs analysis as a sales tool.


J.A. Abels, an independent broker-dealer in Omaha, Neb., has developed a seven-question, needs-analysis technique designed to determine what prospects want to do about funeral expenses, liquidity, paying off debts (including the mortgage), college education and survivor income. He doesn’t ask these seven questions once, however, but several times. This requires the prospects to analyze what their situation would be at various life stages.

“I ask them to look at their needs now; then I ask them to project to the time when their youngest child would be 16 years old, because that’s when a Social Security payment would stop for the surviving spouse, as well as the individual,” Abels explains. “Finally, I ask them to pretend they’re 65 today, the kids are educated and the house is paid for. Posing the same questions, I help them calculate the amount of money they would need at that time. That gives me a three-plot profile over their lifetime for their assumed need for life insurance. In turn, that helps me determine what combinations of policies and the amounts they need to have in place now and in the future. This kind of analysis provides an occasion to recommend disability income insurance and long-term care coverage.”

(Reported by George A. Norris, former senior editor of Advisor Today)

This sales tip is excerpted from the new book, Advisor Today’s Sizzling Sales Tips. To order a copy of copy of Sizzling Sales Tips, click here or call 800-247-4074.

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