It can be NERVE-RACKING moving a client from state minimums all the way to 100k/300k, especially when it bumps their cost up 3-4x.
But what if it’s truly what they need to better protect themselves and their loved ones?
Where is the line…?
When carried out with transparency and the ultimate goal of protecting the client, more comprehensive coverage helps them protect their financial future against large risks.
Here are some points to consider when you next find yourself in this position:
1. Understanding THEIR Needs:
Lead with your ethics! This approach encourages you to assess a client’s specific situation (financial status, assets, risks, and personal or business needs). Recommending higher coverage when it aligns with those needs shows you’re acting in your prospect’s best interest, not just for your paycheck. As you know, offering higher limits can help prospects avoid being underinsured, which could leave them financially vulnerable in the event of a major loss.
2. Full Disclosure & Transparency:
It is important to be transparent about why higher coverage is being recommended. Clearly defining the potential risks of being underinsured and the benefits of additional coverage will allow your prospects to be aware of what they’re paying for, and the protection they’re receiving in return. This means NOT using high-pressure sales tactics or exploiting a prospect’s fears to push for higher coverage. The focus should be on providing value rather than forcing their hand.
3. Tailoring Recommendations:
Offering higher coverage should be based on a careful review of the prospect’s specific risks. For example, higher liability limits may make sense for someone with significant assets to protect, but recommending excessive coverage for someone with limited resources may be unethical.
4. BE COMPLIANT:
It’s unethical to misrepresent the coverages or the risks involved. Providing accurate and clear information is essential to ensuring the prospect fully understands the outcome of higher limits.
Selling higher insurance coverage is ethical and, actually, it protects the clients from risk. By focusing on the best interests of the prospect, providing transparency, and advising in a way that it is suitable and affordable for the customer’s need and wallet, you can build trust and long-term relationships with your prospects (soon to be clients).
Offer the prospects the information necessary to decide what financial protection they need in case anything unexpected happens. Larger coverage limits give peace of mind and protection for both present and yet-to-happen risks.
The best way to know if you are selling ethically? If it feels wrong, it probably is.
CWC
