A sales tip its IFA creator calls ‘The Plug' has won a nationwide competition inviting advisers to share their most successful strategies and tips for selling protection.
Jane Finn, of Finn Associates, sketches a simple square with a circle inside it and uses it to illustrate how quickly income will run out, pension saving will stop, savings will be drained and mortgage payments will be missed, with the client's finances effectively "going down the plughole".
She then offers a ‘plug' in the form of protection and says she finds few clients turn down this option.
The competition was run by insurer LV= to celebrate the first birthday of its Mortgage & Lifestyle Protection (MLP) product and saw over 100 advisers share their tips and ideas for improving sales.
"As someone who sells a lot of protection, I strongly believe in the power of conversation and the importance of understanding what makes my clients tick," competition winner Finn says.
"I've found that ‘the plug' is a simple and effective way of getting my clients involved; it highlights that if ‘something' does happen, how it might affect their provisions, what's important to them and how all their dreams could drain away.
"And when I explain that I can give them a ‘plug', they're really ready to listen."
Competition judge Paul Archer says: "Jane's technique uses plenty of visual stimuli which customers love, some logic which customers will agree with, and a great finale...the plug.
"I think ‘selling' is a positive word for financial advisers. After all, very few customers buy protection, the fact is the vast majority are sold it."
The LV= Mortgage & Lifestyle Protection plan offers long term cover for homeowners who wish to protect their mortgage and other regular outgoings against loss of income in the event of accident and/or sickness.
The Plug:
- Draw a square and divide it into four with a circle in the middle.
- Write 'income' in the top left box, 'pension' in the top right, 'savings' in the bottom left box and 'mortgage' in the bottom right.
- Suggest client has not been able to work for three, six, 12 months (whichever is appropriate).
- Cross the four boxes out in that order while explaining how this could happen.
- Now cross out the circle, explaining ‘effectively your life would disappear down the plughole'
- Say you can plug that hole - draw a plug - adding ‘It will only cost £x - do you want one?'
