The Single-Premium Life Wealth Transfer Cross-Sell

  • Originally published December 20, 2011 , last updated January 4, 2016
The Single-Premium Life Wealth Transfer Cross-Sell

It is estimated that the Baby Boomers will pass more than $40 trillion in accumulated assets on to their heirs by the year 2052. Welcome to the next great frontier in the financial services industry: Wealth Transfer.

Tapping this trillion-dollar market is easier than you might think. In fact, it can be done without even prospecting for new clients. Look no further than your existing Medicare Supplement clients for the perfect “lead program” for identifying suitable candidates for wealth transfer products, particularly Single-Premium Whole Life insurance. With only a few minutes and a few questions on your next MedSupp appointment, you could lay the groundwork for a Single-Premium sale worth thousands in commission.

Building the Sale

When you’re on a Medicare Supplement appointment, the path to a Single-Premium cross-sell starts with getting a "Thumbnail Sketch" of your client’s financial situation. This can be touchy, but there are ways to do it without the client feeling like you’re invading their privacy, or like you’re just setting them up for something.

Simply tell the client that you won’t work with anyone unless you can do a thumbnail financial analysis because you want to know that if you talk about a product it’s suitable for them. Then, pull out your Thumbnail Financial Sketch Worksheet and tell them you’re going to ask them some easy questions that they’ll know the answers to immediately.

The worksheet will help you identify whether the client has assets stashed in CDs, Annuities, Money Market accounts, etc. You’re looking for liquid assets.

Even though you’re just asking them ‘yes’ or ‘no’ questions, the person will likely volunteer more details and, by the time you’re finished, you’ll have a solid idea where their assets are and how much they have there. Then, you simply put your worksheet away and proceed with your Medicare Supplement sale.

The Ultimate Question

Now that you’ve laid the groundwork, the actual cross-sell does not come until you visit the client again to deliver their Medicare Supplement policy in person. The decision to wait is important because it gives you time to build a relationship with the client and gain their trust. So, when you’re all done explaining the Med Supp policy and the sale seems to be all but over, you pull out the Thumbnail Financial Analysis that you completed with them on your previous visit, only this time you ask the one question you didn’t ask before: “What is this money for?”

The answers to this question will usually fall into two categories:
1) We need that money for _______ (could be living expenses after they retire).
2) We want to leave that money to________ (kids, grandchildren, charity).

No. 1 is an annuity sale.
No. 2 is a Single-Premium life insurance sale.

The Close

Let’s say they have $50,000 sitting in a money market account that they want to leave to their children. The money has no other purpose, they don’t need it for medical expenses or traveling or anything; it’s for their children. At this point you don’t have to sell them anything, because a SPWL policy is the right product for their situation. All you have to do is explain the virtues of Single-Premium life insurance:

  • Immediate estate increase
  • Guaranteed death benefit
  • Transfer wealth to heirs tax-free
  • Safety from market volatility

If I could get someone to listen to this presentation, I would close about 50% of those sales. And best of all, it’s the right product for your client.

So what does it take to change a $100 MedSupp commission to a $5,000 life insurance commission? You have to take an interest in your client’s situation; ask the right questions and listen to their answers; and never make assumptions. You never know who might have $50,000 or $100,000 just waiting to be put toward the right product.