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.