Are you a Health Insurance Agent marketing to small business owners?
Are you a LIFE Producer looking for a new TARGET MARKET to approach?
Have you considered the KEY MAN or KEY EMPLOYEE Market?
If you have clients or prospects that own a small business, you should read this!
The main purposes of life insurance is to provide funds in the event of a death. When small businesses lose key employees, it can tragically affect the business and its value. The business will be faced with either "closing down" or incurring expenses related to finding the key person's replacement and then training them. Typical costs resulting from losing a key employee include:
- Loss of management
- Loss of leadership and experience and skills
- Loss of credit capacity
- Loss of consumer or customer loyalty
Small businesses and family owned businesses are particularly at risk since they are typically one or two people whose skills and contacts keep the business growing. Often the "need" is small, like replacing the "ironing lady" or "cashier" at the laundromat or dry cleaners. A small $10,000 to $25,000 policy would fill that need. Maybe the "need" is larger, because the employee's position would be much more difficult to fill and train.
At R.F.S. we insure each and everyone that works here. Replacing them in the event of death would be a tremendous chore and a tragic loss to our business. Not only would we be closed during our bereavement and mourning, we would suffer an additional financial loss having to spend time replacing them, and training the replacement. How easy or difficult would it be finding someone with an insurance license, who is also a Computer Technician, a Marketing Expert, a Web Designer and a Business Manager? And by buying Term with Return of Premium, or a U.L. (that builds cash value) we also have an accumulation fund to reward the employee with at retirement. And added optional riders like Critical Illness or Disability Income make the package even more attractive.
It is so easy to simply ask an Employer, DO YOU HAVE A KEY PERSON WORKING FOR YOU THAT WOULD CREATE A FINANCIAL LOSS FOR YOU, IN THE EVENT OF THEIR DEATH OR DISABILITY? WOULD YOU BE INTERSTED IN A PROGRAM THAT WOULD REWARD THAT EMPLOYEE FOR STAYING IN YOUR EMPLOYMENT UNTIL RETIREMENT OR WOULD PAY YOU A LARGE TAX FREE SUM OF MONEY IN THE EVENT OF THEIR DEATH? WOULD YOU BE INTERESTED IN LOOKING AT A CONTRACT THAT WOULD SATISY BOTH NEEDS?
This is a simple and easy cold call approach or a great market to work with a pre-approach letter to small business owners.
If you have questions about this market, please give us a call. We are always here to assist you.
