How To Sell Big Life Insurance Policies to Wealthy Client

All right, ladies and gentlemen, in this video, I'm going to show you exactly how to sell big life insurance policies to wealthy clients. So recently I went to an event with some of the most successful cash value life insurance producers in the entire world, and they broke down the exact sales process they use to sell big policies to wealthy, high net worth clients. And that's exactly what I'm going to be sharing with you in this video. So without any further ado, let's dive in. Alrighty. So the first thing that you need to realize when it comes to selling bigger policies to wealthier clients is that it's not always about the insurance, okay? In fact, it's typically never about the insurance. It's always about their goals. And I'm gonna explain what that means more in depth in just a moment. So it's all about the value that comes from the policy. The thing is, when somebody has a lot of money, the main benefit of life insurance just being leaving money to your loved ones to pay for expenses often is not as big of a deal. If someone has a lot of debt, yes, that matters. But if somebody's well off, you know, they don't really, like, care about covering debts unless they're, you know, they have a bunch of debts because they have money that they can pass along. You need to focus on the other benefits of life insurance. Life insurance is not the only benefit. The policy gives them other advantages. So I want to essentially talk about the four things that life insurance can do. And one of the guys who got on stage, he gave this speech that I'm about to basically show you guys. He drew this little picture, okay? Oftentimes people struggle to sell life insurance to wealthier individuals because they're like, why would I put my money in a life insurance policy when. But instead I could just put it in the stock market, right? And people will try to argue with them on the basis of the rate of return that your investment is going to give. So people will try to sell life insurance as an investment. Right? And when you try to sell life insurance as an investment, it doesn't compare with the stock market, because in the stock market you can get way higher return. In real estate, you can get a way higher return. So. So you need to focus on other aspects. And essentially.

The example that he gave was, we all have bought phones, right? Like I have an iPhone. Is your iPhone an investment?

I would say 100%. You use it for maps, you use it to book travel, book flights, use it to call people, text people, message clients. You Use it to post on social media. You can use it as a camera. You can use it for basically everything in your life. You can literally have the entire collective wisdom of the entire human race in your pocket and you can access it within five seconds using AI. Right. So is your phone an investment? Yes. So then the follow up question to that is, what is the rate of return of your phone? Let's say you buy a phone for 1500 bucks, what's the rate of return of your phone? Doesn't necessarily. It's hard to measure. Right. So not everything that is an investment gives you a statement. And so that's essentially kind of what we need to view life insurance as is it has all of these other features and benefits that come along with it. And so basically what this photo right here shows and demonstrates, I'll change the color here so it stands out, is a few different things. Number one, you have protection, right? That's the umbrella. You have control. That's why there's like a little crown. You have growth. Yeah, growth. And then you also have retirement. So I'll basically break this down. We'll just start with protection. So when you get a life insurance policy, number one, you get a death benefit, right? If you pass away, you're able to leave money behind your kids tax free and probate free. There's no inheritance tax, there's no probate, goes straight to your beneficiaries. There is 100% value in that, right? It's impossible to argue that there's no value there. Number two, you have guarantees. Specifically when we're talking about cash value, whole life insurance, there is a guaranteed amount of interest that you're going to earn every single year in that policy. That is protection. If you own a business, we're talking about some bigger policies to wealthier people. Businesses get sued. A lot of people say that you're not even a real entrepreneur until you've been in a lawsuit. So creditors, right. If you take out a loan or people that try to sue you, if you have money in a life insurance policy, they cannot access that money. Living benefits, if something happens to you, you get in a car accident, you get sick, you get injured, you can borrow from the money to pay your bills. A lot of these policies also offer long term care riders, right? So if something happens to you, we have to go into long term care. Your policy will pay for your long term care. And then also estate planning. We are just on one of the four things. If you buy a policy that if something happens to you, will pay your bills, that is a worthwhile investment. But it doesn't necessarily have a rate of return, right? So when you're selling to wealthier people, you're explaining this because a lot of times immediately as somebody that you know, if you think about how to invest your money, if you have an investor mindset, if you're wealthier, you're immediately going to go to the rate of return. And that's why you have to break down the actual value of the policy outside of just, oh, you get 4% a year in the whole life policy or if you're selling an iul, whatever, right? Next thing, retirement. You also get the benefits of in retirement you can use it as what's called a volatility buffer. So I'll draw a picture to kind of explain how this works. Most people, they put their money in the stock market, right? The majority of their money is in the stock market. So let's say you have a 401k. Let's say the market's been going up.

Right? And let's say we'll just use for easy, simple math, let's say you have a million dollars invested in the stock market, right? So you have a million dollars.

And you're going to take out $40,000 a year. You're following the 4% rule. You're going to take out 40k per year in retirement to live off of, right? Well, what happens if the stock market crashes? Which right now is not a, it's not an unlikely thing to happen. And let's say you're. A million dollars now goes down to $500,000, right? Well, now the 4% rule doesn't really work out anymore, does it? Because if you take out 4% of 500,000, you're only taking out 20k per year and you're also affecting your principal. So if and when this 500k goes back up, it's not going to reach that full million, right? It's going to take a lot more for it to reach the full million. So what you can do is instead of taking out the 4% per year when your money is down at 500k, you could actually take money out of your life insurance policies cash value to pay your bills. And that's what's called a volatility buffer. So put simply, a volatility buffer is when the market crashes and your principle of your investments is lowered. You can take the money from somewhere else so you don't have to touch it when it's down low. You don't have to sell it when it's low, Right. You also have more options in retirement. You can access that money, you can do different things there. You also have what's called permission to spend. So what does this mean? This basically means that if you have life insurance with a death benefit, it means that in retirement you can spend this million dollars knowing that you're still gonna be able to pass money onto your kids. Right. And as I'm going through, I'm explaining all of these things to my potential customer. Right? My potential client. And I'm basically like explaining how these are all benefits that you get with a life insurance policy. You don't get these with a 401k, you don't get these with the stock market, you don't get these with real estate. These are only things that come with life insurance. Right? Next thing, control. You have access to capital during your life. So for example, let's say you're 30 and you put money into a life insurance policy. If you need it, if you want to borrow from it to fund your business, you can do that. If it's in a 401k, you can't touch it, right? If it's in the stock market, you can touch it. But if you sell it, you got to pay taxes on it. With life insurance, you can borrow against it and you don't have to pay taxes. So you have access to capital. This is especially valuable for business owners. Not many investments have this option. And the last piece is you have tax free growth, right? So as your money is growing within a life insurance policy, the growth is tax free and you can access it and borrow against it tax free, right? So we touch on all of these things. These are all the main benefits of life insurance. You can't measure these with rate of return. If you own a business and you get sick and you can't work for six months and you have no income, that's a pretty negative hit to your net worth. But if you have living benefits that can cover that, you're protecting yourself against moving backwards. And that's still an investment, just not in the traditional sense. So on top of that, one of the big selling points of whole life insurance or cash value life insurance people sell this for IUL and cash value and whole life is essentially what is called arbitrage. So let's say, for example.

Let'S just use whole life because it's more simple. Let's say you're getting 4% per year growth on your whole life policy, right? You get 4% every year. So your money's growing, it's growing, it's growing. All of a sudden you say, cool, I want to take a loan from this policy to go and buy real estate, right? So actually I'm going to make this a flat line to keep it more simple. So let's say I get 4% every year inside of my policy, right? 4%. Let's say I see an opportunity where I can buy a real estate deal and I can actually get a 12% return, right? So what I can do is I borrow against my policy. Let's just say I'm borrowing against it at a 2% interest rate.

So I borrow against my money, I get 4% in the policy, I'm paying 2% to access the capital. So what's the difference between the two? 4% minus 2%. I'm earning 2% here, right? But then if I can take this money and I'm able to take the capital and invest it into a real estate deal, Now I'm earning 12% from putting my money into the real estate deal. I'm earning 2% on the difference between what I get guaranteed and when I'm paying to access the money. So now I'm actually earning 14% and I don't have to use a bank to buy the property. And this is the whole infinite banking concept that people talk about. This is the bank on yourself, be your own bank. When you stack that on top of all of the other additional benefits, this is when it starts to become a no brainer. Like before I got into like more advanced market stuff started to get around. People in like higher net worth circles, you know, people in different businesses. Like because I have my, you know, my marketing agency, we do well with that. I'm in circles, masterminds different things like that. People that have nothing to do with insurance, people that are real estate investors, people that own marketing agencies, people that own massive e commerce businesses, they all have these policies and they're doing things like this. They see the benefit and they see all of these other benefits and they buy these policies. You just need to be able to explain it and put it simply and get the right people in front of you. So if you want to learn how you can generate leads to sell policies like this, I have a completely free school group that breaks down how you can brand yourself as an expert, Brand yourself as an expert that works with business owners to help them do things like this. All you need to do is click the link in the description to get access and I'll see you inside. Take care. Peace.