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Selling accelerated death benefits: Diversifying your sales book

Sep 10, 2013 • 2 Minute Read

Diversifying Your Life Insurance Sales Book with Accelerated Death Benefit

As you know, diversifying your life insurance sales book is a good idea because it expands your revenue source. Using the Accelerated Death Benefit (ADB) to diversify your life insurance sales is a win-win for you and your client.

What’s in it for your client

Normally life insurance death benefits are paid out to survivors of the insured. However, when an unforeseen diagnosis of terminal illness occurs to your client, payments from accelerated death benefits may be helpful. The down side of receiving accelerated death benefits is that the payments reduce the amount paid to the insured survivors at the time of death, but the ability to cover medical expenses during a terminal illness helps your client and their family to avoid medical bankruptcy.

Also, the payments assure quality care while your client endures his or her terminal illness. For instance, a client who has dementia and is placed in a hospice can receive better symptom management, and the family would have peace of mind that their loved one is properly cared for. All this without worrying about medical expenses because of the contribution from the accelerated death benefits.

What’s in it for the agent

When you diversify your insurance sales book using the Accelerated Death Benefit (ADB) you open your business to following benefits.

  • Halo Effect: Accelerated Death Benefits included on a life insurance policy provides a genuine reason to stay in touch with your client, especially when your client is struck by an unforeseen terminal illness. As a result, others will see you as reliable, trustworthy, and more likely buy other policies from you.
  • Referrals: The halo effect feeds into an increase of referrals. When your client’s circle of influence sees your dependability, they will more likely refer other clients to you.
  • Sales Generator: At your seminars, a story about how an ADB helped one of your clients creates a compelling story on its own. Ultimately, you help people, and a story of an ADB helping your client can motivate people to buy a wide array of polices from you. As a result, you will increase your sales and grow your business.