Key Takeaways
- Term life represents 70% of individual policies sold—master these conversations first
- Matching term length to the need (mortgage, kids' ages) increases close rates by 40%
- 85% of term buyers are first-time purchasers—set the right foundation
Term Life Practice
Client Question: "What kind of life insurance should I get?"
Term life represents 70% of individual policies sold. These practice scenarios cover the most common situations you'll encounter.
The New Mortgage
First-time homebuyers needing mortgage protection
Setup
A young couple just got pre-approved for a $350,000 mortgage. Their real estate agent referred them to you to discuss protecting their investment.
Client says:
“Our realtor said we should talk to you before closing. Something about making sure the house is paid off if one of us dies? We hadn't really thought about that. Is this like extra insurance on top of homeowner's?”
Practice Objectives
- 1Explain the difference between homeowner's and life insurance
- 2Discuss what happens to the mortgage if one spouse dies
- 3Help them understand coverage for both spouses
- 4Recommend appropriate term length to match the mortgage
- 5Close the sale before their closing date
The Growing Family
Parents with young children increasing coverage
Setup
A couple with a 3-year-old and a newborn has a small term policy from before kids. They realize they need more coverage.
Client says:
“When we got our policy, it was just the two of us. Now we have two kids, a bigger house, and honestly, I have no idea if $250,000 is enough anymore. My husband makes most of the money. If something happened to him, I don't know what I'd do.”
Practice Objectives
- 1Review their current coverage and situation
- 2Calculate appropriate coverage for both spouses
- 3Discuss the value of the stay-at-home parent
- 4Recommend updated coverage amounts
- 5Address any objections about increased premiums
The Price-Sensitive Shopper
Someone who wants maximum coverage for minimum cost
Setup
A 35-year-old wants $1 million in coverage but is extremely focused on getting the lowest possible premium.
Client says:
“I've been getting quotes online. I know I need about a million dollars of coverage—I did the math. But I want the absolute cheapest option. What's your best rate? And don't try to upsell me on anything fancy.”
Practice Objectives
- 1Respect their research and price focus
- 2Confirm their coverage calculation makes sense
- 3Provide competitive term quotes
- 4Explain factors that affect pricing
- 5Close without trying to sell something they don't want
The Term Expiring Soon
A client whose 20-year term is about to expire
Setup
A 55-year-old's 20-year term policy expires next year. They're not sure if they still need coverage or what their options are.
Client says:
“My term policy ends next year. I bought it when the kids were young. They're on their own now. Do I still need life insurance? If I do, what are my options? I assume a new policy would be crazy expensive at my age.”
Practice Objectives
- 1Assess whether they still have coverage needs
- 2Discuss their current obligations (spouse, mortgage)
- 3Explain options: convert, renew, new policy, or drop
- 4Be honest about pricing at their current age
- 5Help them make the right decision for their situation