Sell Benefits, Not Policies

Learn to make a top-notch presentation with these tips.

By Glenn Stevick, CLU, ChFC, LUTCF

No matter how well you have prepared your presentation or how well your recommendations solve your prospect’s problems, presenting them is still the critical element. Here are a few things you can do to enhance your presentation.

Focus on features and benefits
One mistake advisors make is to think that the purpose of the presentation is to educate the prospect about the technical, legal, tax and product aspects of insurance. While you should discuss these aspects, do so in light of the features and corresponding benefits that are relevant to the prospect and are the basis for your recommendations.

SAMPLE BENEFIT STATEMENTS Whole life coverage: “This means you can feel comfortable knowing that you can never outlive your benefits.” Increasing death benefit: “This feature increases your policy’s face amount to help keep up with the increasing cost of inflation.” Life insurance: “This coverage is a wise decision because it protects the estate you have worked so hard to create.”

Features are characteristics of the product itself—what it is. Features are descriptive and are not given values. Advantages are what the product does, how it works. Benefits are what the prospect gets as a result of the features and advantages. They are what the product does for the prospect. Benefits are value-laden, subjective and are the features a prospect desires.

A feature does not necessarily benefit everyone. If you are selling group insurance to young single males, maternity and dependent coverage may not be a benefit, whereas to a group of young married men with families, these features may be of enormous benefit.

When presenting a recommendation, you want to explain what it is, how it solves the problem and what it does for the prospect. Is it worth the price? Is it the best option? How well will it work? You must address these and other questions if the prospect is to buy your solution. Thus, the benefits must be clearly communicated.

An effective way to present features and benefits is to:

state the feature

follow it with the words, “What this means to you is …”

state the benefit as it relates to a need, value or objective the client has stated

For example, in presenting the waiver of premium feature, you may say, “Prospect, this policy contains the waiver of premium rider. What this means to you is that should you become disabled, the company will pay the premium for you. This will give you the peace of mind of knowing that if you cannot work because of a disability, your premium will be paid and your life insurance coverage will remain in effect, protecting your family in the event of your death.”

Show how the features of your solution benefit the prospect. People buy benefits and solutions, not policies. For example, you buy a drill because you need a hole. People buy because the benefit makes them feel good or satisfies a need. In selling benefits, you want to eliminate a negative feeling (something missing), create a positive feeling (need satisfied), and present a measurable benefit (I feel good). To effectively sell benefits, put yourself in the other person’s shoes to see things from his perspective.

When you explain a feature of a policy, stress the benefits that the prospect will receive. Focus your presentation on the benefit. What the feature will do for a prospect is what the prospect cares about. Concentrate on the benefits that matter most to your prospect—those you uncovered in the factfinding process.

Additional tips
Keep the prospect involved: Use questions to help prospects express their feelings and confirm their understanding. It helps prospects feel responsible for solving their own problems. It helps you know if you are on target with your presentation, building agreement one step at a time. It helps clarify any misunderstanding, provides opportunities to deal with objections, and leads to a logical and successful close.

Insist on all decision makers being present: Experienced advisors know they need to have all decision makers present for a positive outcome.

Be alert for buying signals: Many people who show a desire to fulfill their unmet needs are ready to buy long before they ever say so. Recognize verbal and nonverbal signals that indicate acceptance or rejection. These include questions like “Do you need a physical to get this insurance?” or “When would the coverage start if I sign an application?” Nonverbal signals include leaning forward or listening attentively.

Glenn Stevick, CLU, ChFC, LUTCF, is an LUTC author and editor with The American College and a member of Tri-County AIFA (Pa.). Contact him at glenns@amercoll.edu.