A Big Untapped Market
I want to talk about a big untapped market, the uninsurable
market. Or at least that is what they are led to believe, because they can not get coverage. Tons of clients think
they can not get any type of coverage because of having a poor or a pre-existing health conditions or for other
Most agents run away from unhealthy clients and are taught to only focus on the clients that have no health
conditions. I want to help to show you how to not only run away from these types of clients, but how to prospect
and help them.
I'm going to talk about the clients that you would think are uninsurable. Clients that have had a heart attack,
stroke, cancer, d.u.i., or obese clients, just to name a few. You would be right to think that they can't get
normal insurance. But many of them do qualify for some type of coverage.
Graded benefit products take about 95% of the clients out there. There is hope for many clients that feel like they
can't get any type of coverage. Most graded benefit products are limited in benefit in the first couple of years.
After the graded period has past, it has full benefits. If the client dies in the graded period, the client usually
gets their money back, plus interest (12% to 24%) or a limit amount of the death coverage. This all depends on the
company offering the product. I work with a couple of companies that offer this type of coverage. I believe that
this product can be used to help certain clients.
I want to tell you one of my boring stories. I had a friend named David Littleton that found a great deal on a
house on 7 acres and had a pond on it for about $62,000. This was a great deal. He went to several banks trying to
get a loan, but was turned down by all of them. He had poor credit, due to some credit cards that he never paid
back when he was younger. After being told by many loan companies that he would not get the loan, his heart was
broken. He found one loan company I think it was Greentree Financial that offered to give him the loan. They wanted
him to pay a very high amount of interest. It was over 3 times the interest that I was paying for my home. I
thought they were ripping him off with such a high interest rate. But the fact was that he had poor credit and
could not get a loan anywhere else. Let me just save some time and tell you that he jumped on the offer. He didn't
give it even one day to think about it. After being told many times that you can't have something that you need,
and then you are allowed to have it, you will jump on it. No matter what the price.
The point of the story is to show you how the clients feel and think. They know that they have to pay a higher rate
if they can even get the coverage to start with. Most clients are thrilled to death to get the coverage they didn't
think they could ever get. Most of them have already talked to a couple of agents that have told them that there
was nothing they could do to help them.
Graded Benefit polices are great for these types of clients. Let me give you an example. Let's say a client that
had brain cancer just one year ago is worried about protecting his family from the cost of a funeral and wants to
buy life insurance. He gets out the phone book and calls a couple of agents and most of them laugh at him or tell
him that he can't get any coverage. He gives up on getting any kind of coverage until he runs into you. You tell
him that you can help get some protection. You show him a graded benefit plan. In this example we will use United
Home Life's product. In the first year it offers return of premium and 12% interest. Second year it offers R.O.P.
plus 24% interest. After the second year, it offers full benefit. This is not a bad deal. It is better then if he
put the money in the bank and got a lower amount of interest. It would be hard to find anywhere willing to give him
12 to 24 percent interest on his money. He understands that he is going to pay a higher premium then someone that
is in great health. Most companies Graded Benefit products are non medical and jet issued. Click
Here to see an example client brochure to give you an idea on this
Okay, I told you that I would help you find people to sell this
product to. But I first have to tell you one more boring story. In 2000, I went to the doctor after having bad
chest pains. To make a long story short, I found out that I had something wrong with my heart and they thought that
there was a good chance that I would not live past age 40. Not a lot was known about this rare condition. My world
stopped that day. Everything in my life was going great into this point. I had it all and now this happens. I had a
genetic heart disorder. My doctor recommends that I join a support group. I find an association on google of other
people that have the same heart condition. They show me where there are local support groups in my area. The
support group and association really helped me deal with this issue. A lot of people like me join support groups
and associations after getting bad news. Like after having a heart attack, stoke, cancer or other life changing
events. In the meetings we mainly talked about our families, finding some answers to our questions and what we are
suppose to do now. Many of them did not have any type of life insurance. Now, that they wanted to buy some coverage
it was too late. After about one year, I found a product that Americo Life had, that was through College Life that
had no health questions on it and took everyone. I started showing this product to everyone and a lot of them
jumped on it. So I didn't just stop at one support group, I went and visited some other support groups. I was able
to help many clients. I was lucky that I already had life insurance on myself; because that was the first thing I
did in this business. I started thinking about how many other support groups there were out there that I could
help. You would be shocked at how many you can quickly find.
I want you to look for the clients that have been told that they can not get any kind of coverage. You can do this
in two different ways. You can go fishing with a fishing pole or a net. You can try and sell one person at a time,
or go after the groups of them. Look for the support groups and the associations. Image an ad that say "have you
been declined for life insurance? I can insure anybody".
Let me talk about why this should be one of the niche markets that you use. The clients just about never lapse one
of these polices. They are so glad that they have found coverage that they never let it go. The premiums are
generally slightly higher then most types of insurance, but the clients understand the higher premiums. There is
more good reason to sell these types of product then I could tell you in an hour.
I suggest that you start thinking about tapping into this untapped market. Other agent's declines will now be your
future clients. I'm doing great with my heart condition. In 2004, I believe I was cured with my aorta problems by