ORLANDO -- Scott Foster’s State Farm agency is firmly planted in the property/casualty world, yet he has qualified for Million Dollar Round Table for the past 45 years.
The key to his success in life insurance sales is discussing with P/C clients how life insurance can solve the financial problems that will occur in the event of their death.
Foster is owner of Scott Foster Insurance Agency in Conyers, Ga., and is speaking on “Multi-Line Sales Lead To Multi-Life Sales” at today’s NAIFA Performance + Purpose Convention.
When people think of loss, Foster said, the first type of loss that comes to mind is loss of property – their house or their car, for example – although that type of loss is not always their largest potential loss.
After that comes loss of income and loss of their ability to earn an income. This leads to what Foster called “the chassis that we use to lead to the life insurance and disability insurance decisions and retirement conversations.”
After discussing loss with prospects, Foster said he talks about the four basic risk management techniques. They are:
- Eliminate the risk by selling or avoiding it.
- Protect against the risk by improving the condition of the exposure (vaults, locks alarms, safety courses in business).
- Self-insure the risk by assuming all the risk yourself (low financial loss = self-insure risk).
- Passing the risk to someone else by purchasing a contract with them to assume the risk (insurance).
This discussion “is a way to have a conversation that doesn’t look, or feel, to the client (or prospect) like a sales tract - but simply a discovery conversation that leads to the client (or prospect) wanting to know more about how life or disability insurance can solve these problems, just as their property/casualty insurance covers their house, cars, and stuff,” Foster said.
He also talks with clients about perils – the factors that can cause a loss.
“When we discuss perils, we talk about the property, casualty and liability perils as well as the life and health insurance perils mixed in together,” he said. “By posturing these perils in a risk management format, the client or prospect is much more receptive to the conversation.”
After Foster and the client get to this point in the discussion, “the client is very open and willing to dip deeper into their own situation and needs, as an individual or as a small business,” he said.
“We emphasize that life and disability insurance are tools to avoid the financial losses of these perils of premature death, sickness, or accidents, which can cause financial devastation.”
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.
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