The perfect time to have a needs-based insurance conversation with your client

Quelqu'un tient une clé de maison

To an insurance advisor, it’s always a good time to talk about insurance. After all, it’s something that everybody needs, and if they lack sufficient coverage, we know it is a problem that should be addressed immediately.

However, we also know that people aren't always keen to talk about insurance. Sometimes, it’s the furthest thing from their mind. And, when people aren’t engaged, it can be difficult to have a productive conversation.

The solution? Get the timing right. When you notice that someone is going through one of the many common life events that typically trigger the need for an insurance product (This hyperlink will open in a new tab), take that moment to start a needs-based insurance conversation.

Here are five good examples:

Buying a home.

Your client has just signed-off on what will likely be the largest debt of their life, backed by their most valuable asset. This can dramatically increase their need for insurance protection. At the same time, they might have no idea about the advantages of owning their own insurance contract versus opting-in for the mortgage or creditor insurance they have been offered by the bank. They need your guidance!

Getting married or becoming common-law.

When two people are joined together, so are their finances. This is prime time to reassess the insurance needs of the couple to make sure that, if something happened to one of them, their partner would not sacrifice their current lifestyle or jeopardize their long-term financial security.

Having a baby.

Few milestones pack the same emotional punch as welcoming a new baby. There’s no better time for an insurance advisor to check in and make sure the family’s coverage is fully up-to-date. For example, if a parent were to pass away, would there still be enough financial resources to pay the mortgage, cover childcare, afford post-secondary education and still take an annual vacation?

Climbing the career ladder.

It seems to be human nature that when we make more, we spend more. Whether a client has just completed their medical residency, received a promotion, or achieved a new tier of business success, a higher income means there is now more to lose. This is an appropriate time to say congratulations and also set up an appointment to refresh their insurance needs assessment and make sure their new lifestyle remains fully protected.

Creating a legacy.

As we age, our perspective can change. Perhaps we’ve experienced the death of a close friend or looked into the eyes of a grandchild and started to consider our mortality in a different light. At these turning points, it might be time to think about creating a legacy - the wealth we want to leave for our loved ones and our community. This is yet another life moment when advice from an insurance expert becomes more relevant than usual.

What is the primary benefit of needs-based selling?

From a client’s perspective, it’s ideal to receive your advice at a specific time of need. Decisions get made during these transitional periods. People turn off autopilot and start taking in new information, assessing their options and looking to make changes that they will feel good about.

From an advisor’s perspective, identifying the evolving needs of existing clients is the most efficient way to grow your practice. You don’t have to go out and pitch yourself to strangers. Instead, you can focus on people where you already have trust and relationships established. In the process, you might very well uncover referrals to other friends or family members in similar life stages.

Des employés discutent ensemble

Cross-selling and upselling when identifying insurance needs

Cross-selling means recommending a complementary product. For example, when a client with term insurance starts thinking about their legacy, you might recommend adding a universal life policy to help them shelter and transfer more of their wealth to the next generation.

Upselling means recommending more of the same or similar product. For example, when a client takes out a second mortgage to buy a vacation property, you might recommend increasing the death benefit of their existing policy to cover this new debt on their balance sheet.

Cross-selling and upselling are not goals in themselves, but are often the natural outcomes of reviewing a client’s insurance needs at a pivotal time in their lives.

Every client will have times when your advice is particularly timely and relevant. It’s your job to be there when those moments arise so you can start a conversation, ask good questions, and respond with great life insurance solutions.