Chargebacks Will Ruin Your Insurance Career… Unless You Do This!

Chargebacks will ruin your insurance business unless you do this. Chargebacks are like mosquitoes. The first one seems small and insignificant, itchy, slightly irritating, inconvenience, right? But if you don't deal with the root problem, put on some bug spray. More and more they start to swarm, more start to show up. Next thing you know, death by a thousand bites. In this video, I'm going to give you 15 pounds of off so that you can eliminate those blood sucking chargebacks once and for all. There's a million reasons that your prospects will give you why they are canceling your insurance policy. But truly there's only seven real reasons that you get chargebacks. I'm going to go over each one of them and then give you a foolproof way and how to avoid them so that you can keep more cash in your pocket. Starting today. Starting with number one, which is probably the one you hear the most. I can't afford it. Even though you hear this all the time, it's very rare that people can actually not afford the insurance. In America. Even in the lowest income brackets, people are still propped up on Social Security or some form of government aid. The key is, are they willing to prioritize it. I guarantee you that 90% of the people that you talk to that told you that have Netflix clicks, cable and an iPhone. However, you can actually run into instances where people can't afford it. But here's how to avoid that. Don't get greedy. You don't always have to sell the highest option. Make sure it's within their budget. Life insurance is a financial product and as a professional, how can you make a recommendation or financial product if you don't know their findings? Use a survey sheet to gather information on how much they bring in each month and find something within that budget. Sometimes you'll have to downsell, drop to a lower payment amount and a lower coverage amount. Having something is better than having nothing. Ms. Jones. Number two, banking error. This is my favorite reason. Because it's the easiest to save. This is where they keep all their money. So something happened that caused the payment not to draft. Could be payment drafted either before or too long after their check was deposited. Could be their bank blocked a payment for some reason or they already moved money out of that bank because they thought you already drafted it. The best way to overcome this is to set the draft date within three days or on the date of their Social Security check coming in. While there is no true Social Security billing for life insurance, you can still draft their bank account as soon as their Check is also make sure to give them a heads up on the payment. And I I like to call clients the day after they get signed up just to reinforce that decision and give them yet another reminder. Also remember that some credit unions don't even allow you to draft a savings account for an example. Keep an eye out for that as well. Another great tip is to use an automation to remind them of when their payment is supposed to come out. You can schedule a text and an email that can go out one to two days before their payment drafts just so that you can avoid any issues. Reason number three, they found a better policy or a price. Make sure that you set them up with the best company for them. Now this is going to require you to have some underwriting knowledge and have some more carriers in your repertoire. But that that's fine because you need to be able to explain to them why it's the best decision and make sure that they understand that and agree with you. You need to know your underwriting and usable tool insurance toolkits, for example. At the end of the day, price is important, but the value you provide in the service is more important to most people. Your services don't stop with the client. After you sign them up, you still have to file the death claim. So for example, like if you can't sell them on the best price, sell them on a relationship that they're going to get with you. Be honest. They'll find out whether it's with you or with another agent anyways. Reason number four, another agent or salesper person tricked him. If you know anything about sales people, you know that they can be greasy, sleazy, schleemy, whatever you want to call it. The first insurance policy that Tim ever wrote was on a guy in Orenburg, North Carolina. He wrote him, his wife and his 4 year old granddaughter. A few months later, Tim got an email that he had charged back. He called the guy up. It turned out that another agent had come behind him and told the client that his granddaughter didn't have coverage, which was untrue, and used that as an excuse to rewrite the entire family. This was almost $2,000 in charge back. I had an experience with a lady that had memory loss problems where a guy came in and wrote her for a policy that was five times as expensive years down the line just to get the commission. And then called me up and tried to scare me to not write the lady after he saw that he'd gotten a chargeback notification so that he could keep the business. These grease monster Salespeople could come in the form of another agent, funeral home, or even a loan officer. Here's how to prevent it. Build the trust in the relationship on the front end. Make sure they know to call you if another agent tells them something. They need to have your contact in multiple places. If you're doing face to face, get magnetic business business card and stick them on the fridge. Preferably if they have your face on it. If you're doing telesale, send a welcome packet. Stickers, fridge magnets, pens, whatever. Your face should be all over their house like Christmas decorations during holiday season. And honestly, you should scare them a little bit Now, Ms. Jones, there's a lot of scammers and sketchy agents out there, even the ones that are licensed. So make sure to call me before allowing anyone to look at that policy. Reason number five, they don't understand the policy that you sold them. Confused people don't buy. And if they do buy, they turn back. Insurance can be really confusing, so you need to explain it to them in a way that they understand. But here's some ways to avoid this problem. Educate them on the front end and explain it to them in very simple terms. Do the kiss method. Keep it simple. Stupid. If you're selling whole life, say term is like milk, eggs and cheese and expires. Whole life is a Twinkie. It never goes back. That makes sense. Send a welcome slash like onboarding packet with a frequently asked question attached and a simple explainer with visual graphics and written explanation. Have them repeat back to you what you just told them so that you can confirm they understand it. Make it easy for them to keep in touch with you. I save every client's number in my phone and I save what I've sold them and where their. What their location is so I know who I'm talking to. The next one is the most annoying of all. And you can do everything else right, but if this person is against you, you're screwed. Number six, a family member tells them not to do it. Whenever I got this phone call as an agent, I literally wanted to rip my hair out. You build a relationship with them, you do all the right things, you swing the coverage, and then bam. Ring, ring. I need to cancel. My daughter says it's a scam. As frustrating as it is, it's actually one of the easiest ones to avoid. All you need to do is on the front end. Call the beneficiaries and the closest family members. Explain what you did for them. They'll need you to anyway, since you're probably going to be the one to help them file a claim. And you'll find tons of business and referrals from doing this. You're legitimately killing three birds with one phone call. Okay, now for the final reason that you get chargebacks, this is the most common reason of all. Number seven. Because they don't see the value. I know, I know. It seems simple, right? Well, let me explain. Have you ever heard any of these, I'm just gonna pay for it at the funeral home. I can't afford it. It's too expensive, or I'm gonna get it later. Some form of, I need to think about it. All those reasons are just smokescreens for them not understand of life insurance, which means it's entirely your fault. The same people that are telling you that this insurance is too expensive are the same people that are calling their cable company up the day that their credit card expires just to make sure that they don't miss an episode of the Price is Right. Here are three strategies to make them see the value of your product. Paint them a vivid picture so they see the need. I want to paint a picture of what would happen if they were to pass with an upside and a downside. Best case scenario, worst case scenario. Best case scenario, they have life insurance. Worst case scenario, they don't have life insurance. And so I might say something like, now, in the event that you weren't able to qualify for something today, how would Jeffrey go about paying for that? Would that be something that he would be able to take care of on his own? Or would he end up having to maybe sleep in his car for a bit? What does that look like? So I really want to get them thinking about it. Use referrals to tie down the policy. When people recommend things to other people, they end up feeling more confident about their previous decisions. This is the same reason why gyms always ask you to refer other people. It's because if you have more people that you're currently around that are reinforcing your decision, you're constantly reselling yourself on it. Not to mention, when they explain to others why they bought life insurance, they're reselling themselves again. If they go out and tell everybody that they got life insurance and then they end up canceling it, then they come off as inconsistent. Confirm their identity as someone who protects their family. That might be something like, you know, and Mr. Jones, Jeffrey is so lucky to have a guy like you in his life where you're actually willing to invest in his future like this. I mean, this can be the difference between him losing the house and not ever being able to go to college or being homeless or having that successful life that you want him to in law school like we've been talking about. Constantly label them as someone who plans ahead, loves their family, is responsible, and very caring. So those are the seven reasons that you get chargebacks and how you can avoid them. Thank you guys so much for watching. If you want more free training like this, click the link below this video to join our Facebook group, Insurance Agent Freedom. If you guys liked this video, there's definitely another one you're going to love. I'll see you in the next one.

Sam.