PROTECT THE MORTGAGE

Transcription

1 CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS LIFE EVENTS BUSINESS DEVELOPMENT PROTECT THE MORTGAGE CONCEPT KIT Ed. 02/2015 Exp. 09/03/2016

2 LIFE EVENTS BUSINESS DEVELOPMENT KIT: OWNING A HOME DID YOU KNOW? Buying a home is the biggest investment most people will ever make. 4 More than 5.25 million 1 homes were sold last year, 29% to first-time buyers, about 1.5 million people. 2 4 Analysts say more than 5.6 million homes are projected to sell in 2015, an increase of 7% from Protecting The Mortgage As the economy gets stronger and employment rises, more people will continue to become proud homeowners. However, their biggest asset can quickly become a liability if something unexpected happens. First-time homeowners tend to be young, and few know that a life insurance policy can be used to replace the income needed to pay the mortgage. In fact, apart from having a baby, protecting the mortgage is the key reason for investing in a life insurance policy. As these buyers age and their life needs change, they will require a financial advisor who can continue to guide them on the path to financial success. Buying a home is a perfect life event to start a relationship with them. Clients Life Insurance Needs Change Over Time 1 Existing-Home Sales Lose Momentum in November as Inventory Slightly Tightens, Realtor.org. 2 Existing-Home Sales Rise in October, First Year-Over-Year Increase since October 2013, Realtor.org Housing Market Forecast, Video, Realtor.org.

3 Life insurance policies can fit in most budgets. There are a variety of strategies to choose from based on the client s income and requirements. 4 Basic strategy using a term policy 4 Long-term strategy using a permanent (perm) policy 4 Combined strategy using a blend of term and perm This kit has been designed to help you develop an effective approach to building a network among homeowners. It offers you a systematic approach to have discussions with prospects and shows how you can help them stay in control of their financial destiny beginning with protecting their home. This overview contains the following information to help you get started immediately: 4 Action Plan for Success 4 Client Profiles to pinpoint strategies 4 Conversation Points to guide you as you get started BASIC STRATEGY= TERM A policy with affordable premiums A policy that grows with the client LONG-TERM STRATEGY= PERM ACTION PLAN COMBINED STRATEGY= TERM+PERM For families on a budget who want lifetime coverage CLIENT PROFILES TALKING POINTS

4 Action Plan for Success 1 OBTAIN LEADS 2 SEND LETTER OR 3 FOLLOW-UP PHONE CALL 4 PREPARE FOR MEETING 5 CLIENT APPOINTMENT 6 FOLLOW UP TARGET CUSTOMERS Review the Client Profiles in the next section, and review the additional material in the ekit that provides information about the market. Obtain Leads Step 1: Purchase leads from a preferred vendor or identify existing prospects who have recently purchased a new home or have an existing mortgage. CONTACT PROSPECTS Contact the prospects to introduce them to the idea and to set up a meeting. Send Letter or Step 2: Send a letter or to ten prospects detailing the benefits of life insurance. Find a sample of each that you can use for your convenience in the ekit. Follow-Up Phone Call Step 3: Follow up your letter or with a phone call to check in with the client, ensure he or she got your or letter, and ask for a meeting to discuss the concept further. There are talking points you can use in the Conversation Points section of this kit. MEETING Once a meeting is scheduled, the focus shifts to what s needed to present the strategy and decide on the next steps. Prepare for Meeting Step 4: Prepare for the initial meeting by gathering marketing material that might be useful and possibly some sample illustrations, if appropriate. During this initial meeting, additional information on the client s needs and desires for needed protection will surface. Client Appointment Step 5: At the meeting, walk the prospect through the client materials and then discuss potential solutions. Be sure to use the Life Quick Estimator in this ekit to help determine the amount of life insurance needed. Again, there are talking points in the Conversation Points section you can use. Your Prudential Life Wholesaler can walk you through the material and how to present it to them. FOLLOW UP Step 6: Follow up with the prospects afterward either to collect all of the necessary paperwork, if they have decided to purchase a policy, or to continue discussing the strategy. Be prepared with personalized illustrations to show how the strategy you suggested would work for them.

5 Client Profiles Here are three basic approaches to working with prospective clients who may need life insurance to help protect their home. YOUNG COUPLES WITH A NEW HOME These couples are younger, may be newly married, and are in a new home. They will most likely not have life insurance beyond what their job provides. They may or may not have children. Their needs are simple for the most part, and they will, most likely, have a smaller budget and be looking to have the basic coverage for their new spouse to be able to keep the home should he or she die unexpectedly. If they have a child or children, the need to protect their home will be even greater so their child can grow up in the family home. How a term policy could help: A term policy can be purchased to last the length of their mortgage. The amount of the policy can be the amount of the mortgage or slightly more, depending on what their goals are and their overall debt. They may have built up quite a bit of debt as they got started, which would be a challenge for the remaining spouse to cover, should one die unexpectedly. The premiums are very affordable. COUPLES WITH A HOME AND A FAMILY These are couples who own a home and have a child or children. Their income may be more established and growing. They need life insurance not only to cover the mortgage expense but also to make sure their dreams for their child or children can be realized if one parent is gone. How a permanent policy could help: A permanent life insurance policy will give the clients options for lifetime coverage and, depending on the policy they choose, potential for cash value accumulation. This type of policy can grow with them. It can also, if needed, help provide financial protection from a chronic illness through the addition of an optional policy rider, should that be a concern. How a blend of term and perm could help: For those families that have a tight budget yet would like the lifetime coverage that a permanent policy can provide, a combination of a term policy and a permanent policy might be the answer. A larger amount of term to cover temporary needs and a smaller amount of perm that can cover the long-term needs can give them the right amount of coverage at the budget they want. This solution can also give them options for conversion without taking a medical exam. A Balanced Solution People s insurance needs change after buying a home a major life event. Conducting a needs analysis is an important step to help them make the best financial decision based on their income and requirements. It will also help you in your recommendation for term, permanent, or blended policies that can provide more flexibility in their coverage over time.

6 Conversation Points The following points can help you start conversations, identify your prospects needs, and offer a variety of options to protect one of the biggest investments of their lives their home. WHEN SETTING UP A MEETING Identify yourself and ask if they received your letter or . You can begin by asking if they would like to discuss the options available to them to provide funds to help pay off their mortgage. Suggest one or two times, such as Wednesday at 6 or Thursday at 7. AT THE START OF THE MEETING Thank them for meeting with you. Stress that their home purchase will probably be the biggest investment they will ever make. Show them the options available to provide funds to protect their mortgage in the event of death and how life insurance can help them meet their financial goals. TAKING THE NEXT STEP INTRODUCE POLICY CONSUMER BROCHURES AND/OR ILLUSTRATIONS Share the policy consumer brochures and/or illustrations you have prepared. If you ve prepared illustrations, point out the coverage and premium payments in their case. DECIDING ON A COURSE OF ACTION After reviewing the policy brochures and/or the illustrations, ask them if they have any questions about any of the policy options. Find out which approach they would like to pursue today. Questions about this kit? Contact your Prudential Life Wholesaler today. Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY and/or NJ) and Pruco Life Insurance Company of New Jersey (in NY and/or NJ). All are Prudential Financial companies located in Newark, NJ Prudential Financial, Inc. and its related entities.