Advisor Today - August 2009

sales and marketing

| By Jack D. Campbell, CLU, ChFC

SALES IDEAS
Learning From the Past
A sales script that was effective during the Great Depression can help you sell insurance during this recession.

Does history indeed repeat itself? And if so, what do we learn from it?

We do recognize that the economy goes through good and bad periods. The bulls and bears move in opposite directions. Only in critical downturns do we look for resolves, while recognizing that recovery has always occurred. Also, we note that some enterprising folk can become proactive even in the darkest of times and make lemonade out of lemons.

In 1932, in the depths of the Depression, a 30-year-old Mass Mutual agent became the first MDRT qualifier from the state of Nebraska. My father, John Campbell, was one of 121 nationally to so qualify. He combined the magic of life insurance with the challenges of the moment.

That concept was attractive enough to
place substantial volumes of permanent
insurance at a more difficult economic time
than we now witness.

A conversation opener Knowing many who had sufficient income to preserve the living standards of the moment and who were damaged only by the erosion of their assets, the conversation went something like this:

you like to die at par? Here is what my company can do for you. If you die before the market recovery restores your total estate, we will give your estate, income-tax free, the amount of your loss or more. And if you live to the time the market recovers, the company will return part or all of the money you have given us—and maybe a little extra. Does that make sense?”

Campbell: “How are things going
with you?”
Client: “Not good. The market has
really tanked.”

Campbell: “Do you think it will ever
recover?”
Client: “Always has.”

Campbell: “How long do you think it will take?”

Client: “Don’t know. Maybe five, 10 or 15 years.”

That concept was attractive enough to place substantial volumes of permanent insurance during a more difficult economic time than we now witness.

At a time like this, our industry is in a favorable position. We have certain advantages:

■ The life insurance industry has an absolute monopoly on the sale of time.

■ A whole life contract offers guarantees of cash values—and continued dividends in the darkest of times. (As one advertisement suggested, “You don’t have to look at the daily investment reports; your cash values went up today.”)

provide for the return of some or all of the premium funds paid, as does whole life alone. None of those who purchased permanent policies surrendered them when the market recovered. By that time, they had realized the basic truth: Permanent life insurance is great property. They perceived it as the base foundation of any estate at any time—as it still is.

An enterprising agent can use this concept today. He may not have the same result, but I can almost guarantee he will have a conversation starter that can pivot into any need uncovered.

It was effective in 1932. Try it today. ;

Jack D. Campbell, CLU, ChFC, has been a NAIFA member for 55 years and is a life member of MDRT. He is a registered representative of and offers securities through MML Investors Services Inc., a MassMutual subsidiary.