Your Prospects Need More Coverage Than They Know

A recent study by Trusted Choice found that as many as 32 million households have insurance policies that aren’t right for them. This is a terrific opportunity for insurance agents to get more business.

Your new prospects may need more coverage than they think. And your current clients may need to re-evaluate their current policy and get additional coverage.

Millions Are Underinsured

The biggest problem the survey found: people are insuring themselves for specific situations – and they aren’t updating their coverage as circumstances change.

Consider these survey results:

• 40% of those who have done “significant remodeling” to their home have not updated their homeowners’ policy.
• 30% of households with a new baby haven’t updated their life insurance.
• 85% of drivers who carpool regularly haven’t updated their insurance to reflect the risk of regular additional passengers.

There’s a good chance that your current clients need to sit down with you and talk about how their lives have changed since you sold them their policy. And as new prospects come in, there are opportunities to create more business. A prospect who comes to you looking for health insurance may end up with health, disability, and long-term care policies.

How To Work These Prospects

This survey has two big implications for agents’ marketing strategies.

For your current clients, this is a great time to remind them of the importance of having enough coverage. Give them a call. Ask them if they’d like to take the opportunity to review their coverage. Offer to sit down and help them find gaps in their current policy. This is a great way to let people know that you’re a trusted professional who has their interests in mind. It’s also a great way to make another sale.

For new prospects, the strategy is simple: upsell! Prospects are coming to you for one kind of insurance, but probably need more. This is your chance to educate them.

If you’re buying online leads, you’ll find many prospects who don’t know exactly what they need. A viable health insurance lead could be a good candidate for long-term coverage. Can you offer them Vision and Dental, as well?

Remember, insurance is like another language to most people. As a professional, you’re in the position of being able to help them figure out what they really need. By selling them on the importance of being fully covered, you can make sure their interests are protected – and you can take a larger commission.

Don’t worry if they don’t take the bait. You could make the greatest case imaginable for the importance of being fully covered. In the end, your prospects might decide to get the smallest amount of coverage they can. But at least you’ve planted the seed in their head. Make sure they know that when they decide they need more coverage, you’ll be ready to help them.